Implementing EDI in the logistics industry
Businesses connected to retail or having customers in the retail industry are likely familiar with Electronic Data Interchange. EDI Invoices, Purchase Orders, Shipping Notes, and other typical supply chain transactions remain essential documents in everyday workflow.
In the series of posts, we’ll take a closer look at EDI in logistics – the basics, vendor compliance, and implementation barriers.
EDI In Logistics
EDI is a business communication protocol that helps to exchange data electronically. It reduces manual data processing, errors, and time consumption. EDI facilitates business workflow, raises the speed, accuracy and efficiency of commercial interaction. EDI software transforms human-readable documents into a standardized electronic format that allows processes to work faster and more efficiently.
In common cases, EDI transactions are subject to ANSI ASC X12 or EDIFACT standards, but there are some more standards specific to a definite industry.
EDI implementation unites businesses and makes cooperation between trading partners more fruitful and profitable. It allows seamless integration, more transparency, and real-time document processing. It drives quicker order-to-cash cycles to respond to the growing business demands.
The logistics industry covers many inbound and outbound EDI transaction types. There are common transactions typically used in the industry, as well as specific documents agreed between trading partners. Most used are advance shipment notification, load tender, shipment and receipt confirmation, inventory adjustments, status updates, and receipts – they are critical in any logistics environment.
The crucial issue in any EDI implementation is discussing and agreeing on trading partner requirements and specifications (vendor compliance). We’ll talk about it in the coming blog post.
To learn more about EDI and become a certified EDI Professional, please visit our course schedule page.