Demo SwiftRoute Logistics: a multi-client 3PL day

Demo SwiftRoute Logistics LLC operates fulfilment centres in Dubai and Jeddah for consumer brands, spare-parts distributors, and a medical-equipment importer. It stores customer-owned stock, charges storage by pallet-day, fulfils orders under client SLAs, and buys transport in AED, SAR, and USD. OSERP must keep client inventory legally separate while giving SwiftRoute one operational and financial view.

1. Model the 3PL contract and ownership

Create legal companies SRL-UAE and SRL-KSA, branches, warehouses, zones, and client accounts. A logistics contract records customer, service level, currency, start/end dates, storage rate, handling rate, pick fee, packing fee, transport tariff, minimum monthly charge, claim limit, and billing cycle. Inventory ownership is a mandatory dimension on every movement.

Field	Demo value	Impact
Client	NovaHome Appliances	Contract and billing owner
Inventory owner	NovaHome	Prevents 3PL stock becoming company stock
Warehouse	DXB-FC-01	Physical availability
Storage rate	AED 2.20 / pallet-day	Recurring storage revenue
Pick fee	AED 3.50 / order line	Handling revenue
SLA	Same-day before 14:00	Dispatch priority and KPI
Billing cycle	Monthly in arrears	Invoice source run
Currency	AED	Contract ledger currency
Claim limit	AED 500 / parcel	Liability and claims workflow

The item master includes owner, SKU, barcode, UoM, dimensions, serial or batch requirement, expiry, storage class, and handling instruction. The same SKU owned by two clients must remain separate in availability, valuation, and reporting.

2. Receive client-owned stock

NovaHome sends 1,000 air purifiers. Create an inbound appointment with client, ASN, vehicle, expected cartons, dock, arrival window, and carrier. The receipt header records warehouse, owner, client reference, source ASN, receiving team, and status. Lines record SKU, expected quantity, actual quantity, UoM, serials, carton, pallet, condition, and discrepancy reason.

If 996 units arrive and four cartons are crushed, receive 996 in Available or Inspection status and create a damage claim for four. The stock movement increases client-owned on-hand but not SwiftRoute inventory asset. OSERP posts only the service event or accrual needed for handling; it must not debit SwiftRoute merchandise inventory.

3. Put-away, replenishment, and cycle count

The put-away task proposes zone, bin, capacity, storage class, and owner. A scan confirms pallet ID and quantity. The warehouse view separates available, allocated, damaged, quarantine, and client-return stock. Replenishment moves cases from reserve to pick face and retains owner, lot, and serial traceability.

Cycle counts are scheduled by risk and value. A count line stores book quantity, counted quantity, counter, witness, variance, reason, and approval. A difference for client-owned stock creates an investigation and client notification; it does not immediately become SwiftRoute shrinkage expense.

4. Fulfil an outbound order

NovaHome sends 120 orders through the API. The import includes client order ID, buyer, ship-to, requested date, service level, SKU, quantity, packaging, and carrier. OSERP validates client, owner, SKU, available stock, duplicate order ID, and cutoff time. A same-day order received at 13:30 receives priority SLA-SD.

The allocation uses the client’s lot and serial policy. Pick lines show order, owner, bin, SKU, quantity, serial, picker, and scan result. Packing records carton, dimensions, weight, packaging material, seal, and carrier label. Dispatch records route, tracking number, handover time, proof of delivery, and exception status.

At month end, the client invoice charges 120 orders, 142 lines, 120 labels, and transport. SwiftRoute recognises service revenue, not product revenue. Every fee line links to the contract and source operational event.

5. Storage and value-added billing

The storage billing run takes daily snapshots of pallets by owner and zone. For 80 pallets held 30 days, storage quantity is 2,400 pallet-days. At AED 2.20, storage revenue is AED 5,280. The run must explain opening pallets, additions, removals, average or daily method, free days, and minimum charge.

Value-added services include kitting, relabelling, quality inspection, gift wrapping, and returns grading. A work order records client, SKU, quantity, task, rate, labour, material, operator, and approval. For 500 kits at AED 1.80, billable service is AED 900; packaging consumed is costed to the client-service dimension.

6. Returns and client claims

A customer returns a purifier as defective. Create a return authorisation linked to outbound order, serial, reason, carrier, and client policy. Receiving inspects condition and changes status to resale, repair, quarantine, or scrap. The client receives a return transaction and SwiftRoute bills the agreed handling fee.

If a parcel is lost, create a claim with order, tracking, declared value, carrier, incident date, evidence, liability limit, and approval. A settlement of AED 500 debits claims expense or client payable according to contract and records carrier recovery. The original outbound event remains visible.

7. Cross-border transfer and currency

NovaHome transfers 300 units from Dubai to Jeddah. The movement records owner, source, target, customs document, incoterm, lot/serial list, currency, and transit status. Client inventory remains client-owned during transit. SwiftRoute records handling and transport revenue in the contract currency and settles a Saudi carrier invoice in SAR.

Month-end revaluation applies to open SAR and USD payables or receivables. A payment difference is realised FX, not a warehouse variance. Tax and customs references remain attached to the transfer pack.

8. Reconcile and measure the operation

The controller reconciles client stock ledger to warehouse counts, inbound to ASN, outbound to proof of delivery, returns to credit, storage snapshots to billing, value-added work orders to invoices, carrier claims to recoveries, and bank to receivables. A client statement shows opening stock, receipts, shipments, returns, adjustments, and closing stock by SKU and serial.

KPI	Baseline	After OSERP discipline	Improvement
Inventory accuracy	96.1%	99.6%	+3.5 points
Same-day SLA dispatch	83%	97%	+14 points
Storage billing disputes	7.2%	1.1%	85% lower
Client stock reconciliation	4 days	3 hours	96% faster
Return disposition time	9 days	2 days	78% faster
Unrecovered carrier claims	AED 220k/qtr	AED 48k	78% lower

Practice challenge

Create a 3PL contract, receive client-owned stock with damage, put it away, import orders, allocate and dispatch by serial, process a return, bill storage and kitting, transfer stock cross-border, and reconcile the client statement. Explain every owner dimension, status, operational scan, service journal, tax, FX, permission, and claim approval. Then prove that client stock never enters SwiftRoute merchandise inventory.

Related: Warehouse replenishment, Demo Trading & imports, Multi-currency settlement, Advanced GL Mapping, and API library.