Warehouse EDI Tendencies: Order Processing, Logistics And Transportation
Warehouse EDI systems are constantly developing as the public warehouse business becomes more competitive. Many warehouses are trying to shift their business to electronic technologies including warehouse EDI systems.
One of the things this tendency will influence a lot is quicker order processing. The newest trend is to have the warehouse managed inventory at a retailer site. The warehouse already has accurate information on product sales transfers to the retailer. If the retailer can send back accurate sales information (normally using an EDI 852 (Product Sales Activity Report) document, then the warehouse would have the ability to manage the inventory).
Warehouse EDI will also influence logistics and transportation processing. Warehouses are providing many functions to manufacturers including pricing, packaging, shipping merchandise in specific formats and advanced notification of orders to meet retailers’ needs. EDI will simplify all these processes and will gather them under one roof.
Warehouses are much closer to product than the manufacturer, so they have the ability to determine if product is becoming dated product (i.e., the expiry date on a carton of milk is close to being reached). In this scenario, warehouses have traditionally sent Inventory reports to the manufacturer notifying them that the product is reaching its “best before” date. EDI transactions will help to exchange this information much quicker and EDI management will streamline selling of this product to the warehouses.
The automation of all these processes is extremely important to warehouses, as an EDI process for the receiptand notification of goods is an essential method for reducing costs. Prior to automation, paper based systems were expensive to maintain. In addition, delays in information greatly reduced processing efficiency. For example, if an order is received but the warehouse inventory systems are not updated quickly, the product can not be sold.