EDI Grocery Business: Notes for electronic business operations in grocery retail
EDI Grocery business solutions can be regarded as instruments that can improve grocery supply chain by raising the effectiveness of files transmission process, reducing costs and speeding-up operation. Grocery industry is a very competitive business and that is why most retailers continue to concentrate on raising operational efficiency as well as clients’ quick service and satisfaction.
Electronically transmitted orders and invoices are faster and more accurate than e-mails or fax messagescontaining the same information. That is why most big retailers require their suppliers to become EDI compliant and implement EDI Grocery business solutions.
Grocers regulary send to their suppliers either 850 or 875 Electronic Data Interchange format orders. While 850 EDI transaction is used as an order in many industries, 875 order type file is defined directly for EDI Grocery business operations. It is called EDI 875 Grocery Products Purchase Order. Both of the mentioned EDI order types are quite similar and include line item numbers, price, quantity, discounts and shipping notes. Some retailers send only EDI 875 purchase order, other support both 875 and 850 grocery EDI purchase order.
Electronic Data Interchange Invoices are sent from supplier (vendor) to retailer. There are also two types of Electronic Data Interchange Invoice transaction set – either EDI 810 or EDI 880. The 810 EDI invoice file is paired with EDI 850 purchase order, while 880 is paired with 875 grocery EDI purchase order. These two types of Electronic Data Interchange invoices are very similar.
The difference between all-industry and grocery EDI orders and invoices appeared due to development of the world EDI standards. EDI standardization became more sophisticated and therefore grocery industry required some peculiarities to be added to the existing Electronic Data Interchange standards. This thjerefore influenced the appearance of 875 and 880 transactions.
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