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EDI and How it Helps Service You and Your Clients

What is EDI?
EDI stands for Electronic Data Interchange. This is the idea of businesses electronically communicating information verse what used to be communicated through paper. The typical data interchange is based on purchase orders and invoices.

Retailers require all data to fit their standardized format. If not done properly, it can cost you precious time and create unnecessary chargeback fees. Fulfillment Plus accurately interprets and then translates all data so that it is formatted properly. In fact, just about all larger retailers such as Walmart, Target, Walgreens, etc. require EDI be used for each order regardless if a fulfillment company is used or not. If you’re looking to work with the bigger retail chains than EDI is a system you can’t avoid.

The Benefits of EDI
EDI is standardized. It is a universal (though very antiquated) system. Thereby making it much more efficient as the steps are the same no matter what retailer. Not only does it save time because all transactions are standardized, but it decreases the margin of errors.

Requirements for Being EDI Compliant
EDI compliance involves either buying or outsourcing the following components*:

  • Software for communications
  • VAN service for EDI transmission
  • Mailboxing of EDI transactions
  • Mapping and translation software
  • Installing upgrades to software as needed
  • Mapping labor
  • Testing with EDI trading partners
  • Upgrades for new versions required by trading partners

How EDI Works
A buyer prepares an order within the retailer’s purchasing system and has it approved. Next, the EDI order is translated into an EDI document format called an ‘850 purchase order’. The 850 purchase order is then securely transmitted to the supplier either via the internet or through a VAN (Value Added Network). This is all done without human interaction.

This will ensure speed and accuracy in all transactions, all while saving money usually spent on labor. Errors due to illegible faxes, lost orders, or incorrectly taken phone orders are all eliminated, saving your staff and company valuable time from handling data disputes. Not only will labor costs decrease, but other costs associated with paper, printing, reproduction, storage, postage, and document retrieval are all reduced or eliminated when you switch to EDI.
In conclusion, EDI is a very valuable and resourceful system to work with. It not only helps you acquire leads but also makes your transactions run much smoother. Fulfillment Plus offers EDI along with many other benefits for our clients such as; assembly work to packing and shipping your product anywhere in the world, as well as promotional programs and social media. Whatever your business needs, we have the knowledge, expertise, and contacts to make sure your job gets done right the first time.

 

* Source of information here