+1 800 967-0030

How EDI Affects Your Entire Supply Chain Management

Electronic data interchange (EDI) is one of the most intimidating and often avoided software tools in the world of order fulfillment services.

SMBs (small- and medium-sized businesses) erroneously believe that EDI is either too expensive or too complicated to be worth the trouble, so instead insist on continuing to try to handle growing commercial orders with a basic shopping cart or worse, manually over the telephone or fax. The truth is that EDI can actually open your business to better opportunities and an increased cash flow with little extra input if you apply it correctly.

The Many Parts EDI Plays in Supply Chain Management

EDI plays such an important part in the supply chain that it can’t be ignored. Once you have access to EDI, you’ll see just how much it can do for you. EDI is about efficiency, order accuracy and saving man-hours.

Here are some of the more common roles it plays in supply chain management:

Allowing full order automation. When your orders come in over a fax or through email and then you have a person who transfers them into a piece of order management software, it may not seem like you’re creating a lot of extra work, but when you look at the hours involved it really adds up. EDI can be used in part to fully automate your workflows, including transferring the same order your staff needs an hour to handle manually in mere seconds.

Preventing order errors. Eliminating the human element as much as possible is the key to increasing your order accuracy exponentially. Although some customers may understand that your people are “only human,” you’ve never heard anyone mutter “to err is to be a computer.” When you use EDI to front end your order fulfillment, you’ll discover that the only place that’s left for mistakes is in the warehouse, where orders are checked and checked again to help reduce human error.

Handling all the communication with buyers and suppliers. In addition to handling order taking, an EDI can help with the additional communication you typically handle manually. From confirming orders to confirming changes and sending final order acknowledgements, advanced shipping notifications and invoicing, an EDI system can be put in charge of all the busy work.

EDI is an invaluable tool for SMBs hoping to work with larger outlets that require substantial orders. It’s just another way that you can do a lot more with limited staff. The reduced overhead can really help to increase your bottom line.

 

February 02, 2017
Share This:

Related Posts

RECENT POSTS

Prescription for Perfection: Nutraceutical Fulfillment in 2024

The global nutraceuticals market was valued at USD 425.57 billion in 2022 and is expected to reach USD 693.06 billion by 2028, growing at a CAGR of 8.47% during the forecast period. If you are in the nutraceuticals business, this is probably not a big surprise for...

Mastering Walmart Marketplace Order Fulfillment

Selling your products on a major online marketplace can be a game-changer for your business. Walmart Marketplace has gained significant traction in recent years. It offers a unique opportunity for businesses to expand their reach and tap into a vast customer base....

Love is in the Cart: An E-Commerce Guide to Valentine’s Day

Ah, Valentine's Day – the day of love, affection, and of course, a bit of shopping. Whether you're happily coupled up, celebrating with friends, or treating yourself to some self-love, there's no denying that February 14th can put everyone in a shopping mood. Planned...

Fetching Success: ShipWizard’s Pet Care Fulfillment Unleashed!

The pet care industry is experiencing remarkable growth, and with it comes an increasing demand for efficient order fulfillment solutions. The pet supplement industry is set to hit $1.05 billion by 2027, according to an analysis by Grand View Research. In addition,...

Smooth Sailing for Rakuten Stores with ShipWizard

Rakuten is a powerful and globally recognized e-commerce platform with a vast customer base and numerous benefits for sellers. If you're running an e-commerce website with a Rakuten store, you understand the importance of getting your products to your customers...