EDI Case Study: increasing accuracy and making labor reductions using EDI and GS1 standards
EDI Case Study shows how keeping a vast logistics network on the same page takes seamless coordination and timely, accurate information. With GS1 standards and EDI implementation Land O’Lakes, Inc. reached higher efficiency in warehousing.
A global agricultural co-operative, Land O’Lakes, Inc. operates approximately 80 plants and 70 warehouses and distribution centers along with managing about 20 third-party warehouses—all where hundreds of products are manufactured, stored, and shipped.
Within its animal nutrition division, Land O’Lakes is implementing the use of electronic data interchange (EDI) transactions along with Advance Ship Notices (ASNs), following the lead of its dairy division that has been using ASNs for nearly a decade. Each ASN includes GS1 Standards like the Global Trade Item Number® (GTIN®) and Serial Shipping Container Code (SSCC) to uniquely identify each product on each pallet, included in the pending shipment. Benefits Land O’Lakes has reported a reduction in labor by up to 25 percent, a reduction in EDI-related errors from 11 percent to one percent, and an increase of 10 percent to a near perfect 99 percent in order accuracy.
ASN Drives the Process
As each shipment departs from the shipping origin, Land O’ Lakes sends an ASN to allow recipients to plan for its arrival and validate the shipment’s contents once it has arrived. The company has been using ASNs in over a dozen of its facilities in the dairy division for nearly a decade and is now implementing it in a half-dozen locations in the animal nutrition division. To help simplify and improve operations, the Land O’Lakes customer requires the GTIN, lot number, manufacturer name, expiry date, and pallet identification number as part of the ASN. Land O’Lakes uses the Serial Shipping Container Code on its pallets, which contains all GTINs included on the pallet. By using the GTIN and SSCC, Land O’Lakes helps ensure that all product detail is included and can be easily shared electronically, enabling significant efficiencies between trading partners. When implementing the ASN, Land O’Lakes took a phased approach to generate the SSCC at the point of manufacture and then validate this information before exchanging it with warehouses.
To learn more about EDI implementation please visit our course schedule page.