Implementing EDI (electronic data interchange) is becoming increasingly popular among small and mid-size businesses (SMBs). These companies choose to implement EDI because they can do business with large retailers and send and receive order information in one format, rather than emails, phone calls, or faxes. Implementing an end-to-end EDI solution enables you to:
Work With Big Box Retailers
EDI gives you the opportunity to work with big box retailers to bring in additional revenues. EDI has been mandated with large retail chains, such as Walmart, and all of their trading partners must adapt the format. With EDI, you have the opportunity to trade with large retailers and establish credibility due to the improved accuracy associated with EDI. Even if you do not trade with big-box retailers, EDI still opens the door to other trading partners.
Eliminate Manual Data Entry
If you are spending just one hour a day manually processing orders, in a typical work year that will add up to 250 hours, which is simplified to 31 work days. With logicbroker’s end-to-end EDI solution, you get that month back. logicbroker maps to your trading partner’s EDI so documents flow effortlessly between the systems and eliminating the need for you to log into portals.
Because EDI transmits documents electronically, the chances of rekeying errors are eliminated. As a result, you will save money because your orders are accurate; reducing costly returns from lost or incorrect orders. Manual touches are removed from the order equation, so all billing, shipping, and item information is correct. Shipping errors, especially for large items or pallets can be very costly. By removing the chance of a costly error, you are an attractive company to do business with.
Work in Real-Time
EDI enables you to work in real-time, allowing inventory quantities to be up to date. For suppliers and retailers that are drop ship partners, working in real-time is crucial. EDI can send inventory updates quickly and seamlessly, which eliminates out-of-stock orders and backordering. With these risks eliminated, customers will be satisfied with their retailer and in turn, the retailer will be satisfied with their supplier.
Common EDI Documents
|204||Motor Carrier Load Tender|
|214||Transportation Carrier (TC) Shipment Status|
|810||Invoice sent from the vendor to the merchant|
|820||ACH Payment (Automated Clearing House Payment)|
|832||Product Catalog Price File|
|850||Purchase Order. Ship to address, items to ship|
|855||Purchase Order Acknowledgement. Got your PO (850), can ship all items, some items or no items.|
|856||Advance Shipment Notice. Tracking information for the items shipped on the PO (850)|
|940||Warehouse Order – similar to 850 except goes to 3PL WH|
|997||Functional Acknowledgement (FuncAck)|
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