Express Case Study: Logistic Edge Gets More Agile by Turning to SaaS for WMS and EDI

March 24, 2009 — Logistic Edge is a Southern California-based third party logistics (3PL) company, providing warehousing and distribution services, transportation management and value-added services (pick and pack, assembly, fulfillment, labeling, packaging) for small and midsize retail suppliers. Its West Coast locations provide ready access to the country's largest ports and assist its customers in achieving high vendor compliance rates for retail customers such as Wal-Mart, Nordstrom and Home Depot.

With its focus on warehousing and distribution, Logistic Edge wanted the efficiencies of a first-class warehouse management system (WMS) and electronic data interchange (EDI) without incurring the costly infrastructure, maintenance requirements and IT staff needed to support in-house systems. Thus, when faced with having to upgrade their legacy WMS system in 2008, Logistic Edge opted for a software-as-a-service (SaaS) offering from 3PL Central. The new SaaS WMS solution was a completely outsourced solution that offered a low capital outlay, increased flexibility, more capabilities and enhanced customer service for Logistic Edge.

"3PL Central understands the WMS needs of a 3PL company better than any other provider, not surprising as 3PL Central started as a 3PL company and later elected to serve this market as a SaaS technology provider," said George Hynes, president at Logistic Edge. "Our customers are delighted with the new services we offer thanks to 3PL Central's solution, including automated e-mail notifications, online tracking, and much more."

Not long after its success with a SaaS WMS, Logistic Edge looked at adding a SaaS B2B integration solution to achieve a higher level of vendor compliance for its customers. Today's retailers expect virtually all suppliers to do EDI in a timely manner, despite complex requirements that can challenge even the largest companies' IT departments.

Again, Logistic Edge looked for the SaaS leader in this technology market and quickly found SPS Commerce. The SPSCommerce.net solution offered the flexibility Logistic Edge needed and, most importantly, had pre-wired connections to more than 1,200 retailers.

SPSCommerce.net is a multi-tenant SaaS solution, so its thousands of customers leverage the same reliable and ready-to-use integrations every day. This technology is teamed with SPS' staff that knows the minute details of every retailer's EDI requirements as a result of the enabler's longtime relationships with the retailers. As a result, Logistic Edge no longer needs to interface with retailers' IT departments with any EDI questions, as SPS Commerce's team performs this entire task on their behalf as part of their subscription.

With the integration of both SaaS solutions — 3PL Central and SPSCommerce.net — Logistic Edge has hands-free data operations that are lowering its costs while providing more services to its 3PL customers.

In today's economy, suppliers are being asked to make decisions quickly. For example, some need to change warehouses or open new ones in 30 days or less. Logistic Edge is prepared to react more quickly to their customers' needs, as moving locations leaves little or no time to set up IT solutions onsite. With their SaaS solutions from SPS Commerce and 3PL Central, no setup is required and Logistic Edge can begin servicing its customers from new locations almost instantly.

Suppliers are more cost conscious than ever. By reducing its internal IT staffing and infrastructure costs using SaaS solutions, Logistic Edge can pass along these savings in the form of more competitive rates to its customers while improving, not minimizing, its services.

"With SPS Commerce and 3PL Central, Logistic Edge is able to process orders and turn inventory more rapidly for our customers without the need for additional IT systems or staff," said Hynes. "We can remain focused on offering our customers a better 3PL experience that now includes faster setups for new customers, improved order visibility and competitive rates."

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