A growing number of companies are discovering the many advantages of Electronic Data Interchange (EDI) and its ability to automate the exchange of data between systems and applications. Benefits include increased reliability of business processes, lower costs and fewer errors. But it is companies in the transport & logistics sector as well as retail, in particular, that could be reaping the rewards of integrating EDI within their business processes.
Using EDI does away with the need for human intervention in business processes, as all information is exchanged via IT systems. This makes exchanging information with partner companies along the supply chain easy, secure, fast and above all error-free– all thanks to EDI.
TRANSPORT & LOGISTICS
The transport & logistics sector has always been a very information-heavy industry, which relies on large volumes of data to correctly carry out all manner of processes related to transporting goods. If transport information is not readily available, then this can put a strain on operations and result in late deliveries to companies and consumers.
To make their products, manufacturers rely on raw materials, which arrive by ship, truck or train, before being stored on the manufacturer’s premises. Once the manufacturing process is complete, the products are handed over to wholesalers before eventually reaching the consumer – the products’ last stop in their journey along an extensive distribution channel.
- INTEGRATIONS WITH ERP, WMS, ETC.
- FAST & FAULTLESS COMMUNICATION
- AUTOMATIC ORDERS
- DOCUMENT GENERATION
- TRACK AND TRACE
- ON PREMISE AND CLOUD-BASED
Gone are the days of having to rely on paper forms such as order confirmations and packing slips – all thanks to EDI. Instead, the various systems of the partner companies along the supply chain are able to exchange the necessary data automatically. Warehouse Management Systems (WMS) and Transport Management Systems (TMS) of the various supply chain partners can share information with each other easily, meaning each company is able to carefully adjust its stock levels to demand from the supply chain. This allows for cost savings, gained from more efficient storage, which can then be passed on to the (end) consumer, who, in turn, also enjoys a more competitive retail price.
INTEGRATIONS YOU CAN RELY ON
Systems of partner businesses along the distribution channel can exchange all relevant data automatically, allowing The Warehouse Management (WMS) and Transport Management Systems (TMS) of the partner businesses to share information with each other easily.
RETAIL SECTOR
Retail and e-commerce companies, in particular, can benefit greatly from EDI. In the world of e-commerce, it is vitally important that orders be processed quickly and without errors. What’s more, in order to keep storage costs low, an (online) retailer will never stock more products than necessary, instead opting to base its stock level on market demand. When the inventory of a given product drops below a certain level, EDI can be used to automatically place new orders with a manufacturer or wholesaler, making for an automated, fast and error-free ordering process. A powerful EDI solution saves (online) retailers unnecessary storage costs, which means they’re able to set more attractive prices for their products. This increases the competitiveness of the respective retailer and improves its chances of surviving in a crowded retail market.
EDI also allows online retailers to process orders faster. Oftentimes, online retailers will work together with numerous distribution partners. Thanks to EDI, these partners can now automatically be sent shipping messages, for example. Packing slips are also created automatically, meaning customer delivery details don’t have to be painstakingly retyped by hand, either. The results speak for themselves. Orders reach end consumers faster, improving the reputations of online retailers, which are often based on how fast and reliable the online order process is. This, in turn, increases the likelihood of repeat purchases.
After placing an order, the customer is automatically emailed an invoice with an estimated delivery date. Another email links the customers to the distribution partners’ track-and-trace feature, allowing the customers to monitor the delivery day and window for their parcels.
FAST AND ERROR-FREE COMMUNICATION
With EDI, orders reach the end customers faster, as packing slips are generated automatically without the need to retype customer delivery details manually.
INTERESTED IN LEARNING MORE?
Are you interested in seeing what Lobster’s EDI solution could be doing for your business? Simply contact us for a free (online) demo, and we’ll be more than happy to tell you all you need to know.
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