EDI Compliance

How to establish EDI transmissions with business partners?

Major retailers expect EDI compliance from their trading partners. They require the exchange of EDI transactions such as Purchase Order, Invoice, Advance Ship Notice etc. Furthermore, this will be a major requirement when starting business relationships with big retailers.  

Timeliness and accuracy requirements apply to dropshipping operations. A trading partner will need to notify the retailer via EDI of shipments to customers in a timely fashion. Also, a partner company should communicate the shipment details, including product items and quantities.

Starting EDI communication, you should be proficient in EDI transmission, otherwise, your company may face the consequences in the form of costly chargebacks. Let’s look at some examples.

If your company did not ship your order on time and misses the no-later-than shipping date, you’ll get a chargeback from a retailer. Or you shipped your order in time, but the ASN shipping notification wasn’t sent to the retailer. In this case, the retailer receives the order without ASN – another chargeback for a sender.

How to avoid chargebacks and penalties? EDI communication should be set according to the vendor requirements and all the EDI processes in your company be accurate and released in a timely manner. 

At our webinars, we teach EDI implementation best practices for businesses of different sizes – from small companies to industry giants. Learn how to improve your EDI communication and benefit from it.

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