3PL Warehouse Integration with Microsoft Dynamics AX

Overview

Integrated Microsoft Dynamics AX 2012 with a third-party logistics (3PL) managed Warehouse Management System for a key distribution center in Cambridge. Although operated by a 3PL partner, the warehouse remained an active fulfillment hub requiring tight ERP integration.

3PL warehouse integration with Microsoft Dynamics AX.

Scope

Outbound Transactions from AX to 3PL WMS

Sales orders ready to ship
Purchase orders for receipt
Transfer orders destined for the warehouse

Inbound Transactions from 3PL WMS to AX

Shipment confirmations triggering packing slip posting
Purchase order receipt confirmations
Transfer order receipts
Inventory adjustment transactions

Key Activities

Requirements Gathering: Collaborated with internal supply chain teams and 3PL operations.
Interface Design: Mapped AX entities to 3PL WMS transaction formats.
Development: Built automated outbound and inbound AX interfaces.
Data Exchange: Implemented secure SFTP-based integration with scheduled batch jobs.
Testing: Performed end-to-end testing with mock shipments, receipts, and adjustments.
Go-Live: Coordinated cutover to ensure uninterrupted warehouse operations.

Outcome

Enabled near real-time integration between AX and the 3PL WMS.
Automated six core warehouse transaction types.
Reduced manual data entry by ~70%.
Achieved 100% transactional accuracy during parallel run.
Improved shipment confirmation to same-day processing, accelerating invoicing.
Reduced PO and transfer order receipt processing time by ~50%.
Improved inventory accuracy, reducing stock discrepancies by ~25%.