EDI Trading Partners

EDI Trading Partners Considerations Before Starting Digital Partnership

As business partners discuss implementation of order consolidation, the following points should be considered (as recommended by GS1).

For the Brand Owner

The brand owner and retailer should, as trading partners, agree that the combination of products that would normally be in separate cartons can be combined in a single / reduced number of carton(s), though it may contain different department/class numbers or purchase orders. It is recommended that each brand owner and retailer, as a trading partner, should define a process on combining products to reduce the number of cartons.

For the Retailer

The retailer and brand owner should, as trading partners, agree that the combination of products that would normally be on separate purchase orders can be sent on a single PO, though it may contain different department or class numbers. It is recommended that each retailer and brand owner, as a trading partner, should define a process on combining products to reduce the number of cartons.

Principles

  • Is the use of order consolidation intended only for replenishment purchase orders
  • Products are being shipped to, or marked for, the same store or retailer location
  • Adjacency of the merchandise on the sales floor In store merchandise receiving processes
  • Brand owner is shipping products on all the impacted purchase orders from the same distribution center
  • Payment terms are the same for all impacted purchase orders
  • Preference for same ship window on impacted purchase orders
  • Maximum POs allowed in a carton
  • Mixing of products with different VAS requirements- RFID, packaging, ticketing
  • GS1-128 Carton Label contents

Trading partners should review packing lists, carton content labels, and BOLs to ensure they meet the needs of both parties.

To learn more about EDI considerations before starting business partnership please visit ourĀ course schedule page.

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