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Warehouse Management for Third Party Logistic Company

Former Member
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Dear All,

I have the following scenarios:

Company having 5 legal entities

One Legal entity ( X) is Manufacturing Cosmetics

Legal entities ( A, B & C ) are the Distribution Companies

5th legal entity ( Y ) is 3PL for the 3 Distribution Companies, A, B & C. Y has a warehouse which stocks the goods of the 3 distribution companies A, B and C. Inventory and goods still belongs to A, B & C

We need to implement warehouse management for Y ( 3 PL) company

Our proposition is to create warehouse structure which will address all the 3 legal entities ( A, B & C). So essentially the assumption is that warehouse is above the company code

We wanted to know the folloiwing:

1) If Y has to service all A, B and C at the same time and it needs to plan the routes for the deliveries created across the legal entities, how is this possible?

2) How will this impact the shipment planning, pick pack and the shipment cost?

Thanks in advance for input.

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Answers (1)

Answers (1)

Former Member
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I would assume you have separate sales orgs and distribution channels for A, B and C.

But you would have to tie them together at a higher level may be at the comp code level and plan the supply chain from a higher level.

A good forecasting tool will help in distributing and managing inventory across the 3 different distribution companies.

There has to be some type of segregation of distribution between the 3 companies either at geographic level or by volume or something else. Otherwise it will be a real complex business planning and forecasting process if the 3 companies overlap in all aspects.

Hope this helps.

Good Luck.

M.