A third-party logistics provider (3PL) is an external company that handles one or more logistics functions on behalf of a business. Common 3PL services include warehousing and storage, pick-and-pack fulfilment, transport and carrier management, and returns processing. UK distribution businesses use 3PLs to access specialist infrastructure and capacity without the capital cost of owning it. When integrated correctly with Microsoft Dynamics 365 Business Central, a 3PL arrangement can give an operations team real-time visibility of stock held off-site alongside stock in their own facilities.
How 3PL integration works in Business Central
Business Central does not manage 3PL warehouse operations directly, but it connects to them. When a 3PL receives goods on your behalf, that receipt can be posted back to Business Central automatically via an API or EDI connection, updating the item ledger and stock availability figures. Sales orders fulfilled by the 3PL trigger a despatch confirmation that closes the order in Business Central and updates debtor records. Power Automate can manage the data flows between Business Central and the 3PL's WMS without bespoke development in many cases.
3PL in practice
- A UK distributor moves its bulk storage to a 3PL and connects the 3PL's WMS to Business Central, giving the buying team real-time stock visibility across both locations from one screen.
- An e-commerce business uses a 3PL for fulfilment and maps the 3PL's despatch confirmations directly to Business Central sales orders, eliminating the daily reconciliation spreadsheet.
- A seasonal goods business uses a 3PL to absorb peak-period volume without committing to permanent warehouse space, with stock movements feeding Business Central automatically throughout.
- An importer uses a 3PL for bonded warehouse storage and configures Business Central to track stock as bonded until duty is paid and goods are released.
How Advantage helps with 3PL integration
Advantage designs and implements integrations between Business Central and third-party logistics providers, using APIs, EDI or Power Platform connectors depending on what the 3PL supports. We map stock locations, item codes and transaction types between the two systems to give distribution businesses a single accurate view of inventory regardless of where stock is physically held.
Frequently Asked Questions
Common questions about third-party logistics and Business Central integration.
