+1 800 967-0030

Most-Commonly Asked EDI Questions

We talk a lot about EDI in relation to 3PL and fulfillment services for eCommerce businesses, and we thought it would be helpful to compile some of the most commonly-asked EDI questions—with their answers—here in this post.

Let us know if you have others! 

EDI, short for Electronic Data Interchange, refers to a process by which companies send information and data electronically (as opposed to manually and/or by paper) and within a standardized format.

The result? Greater efficiency, increased time savings, less need for manual entry or input of information and, ultimately, a more streamlined and profitable bottom line. EDI is less expensive, more efficient and overall less labor-intensive than other options or protocols. 

EDI can refer to information and documents such as invoices, purchase orders, bills of lading and shipping notices. When EDI and Fulfillment Services team up, all of this information is able to be exchanged without human involvement, making it more cost-effective, less expensive and less error-prone. Ultimately, EDI affects your entire supply management for the better.

[su_spoiler title=”Why should a business consider EDI?” style=”fancy”]It could be argued that the increase in efficiency and in cost savings would be a “no-brainer.” Beyond that, no company, regardless of its size, wants to be left behind. As more and more businesses opt for EDI, the ability for those left behind to gain access to a larger arena of customers and suppliers will lessen. In other words, those who do not move forward will be left behind in a tough spot that does not allow for efficient and unlimited growth or expansion.

EDI compliance or being EDI-compliant means that your organization has the ability and opportunity to send and receive EDI documents and information in whatever way your counterpart requests. Documents are exchanged between partners in the exact format specified, and information is exchanged freely and easily.

EDI standards refer to the standard format used to process and transmit the information between partners. The standardized format allows for computers to read and understand the documents and information, again, eliminating the need for human or manual involvement.

Standard format refers to the format in which the information is structured, and ensures that both ends speak the same language, so to speak. Without getting too technical, some of the EDI standards used today are ANSI, EDIFACT, TRADACOMS and ebXML, many with multiple versions. In order to successfully exchange EDI documentation, two organizations need to agree beforehand on which standard and which version they will both use.

June 15, 2017
Share This:

Related Posts

RECENT POSTS

Real-Time Order Tracking Or Bust

Gps tracking map. Track navigation pins on street maps, navigate mapping technology and locate position pin. Futuristic travel gps map or location navigator vector illustration “Where is my order?” “When will my package arrive?” If you are inundated with questions...

First In, First Out Warehousing and Fulfillment

Are you a seasoned inventory manager? If so, the acronym FIFO - which stands for First In, First Out - might be a familiar term to you. Put simply, the items are sold in the order they are received in the store or warehouse. FIFO is the go-to inventory management...

Grow Your Amazon Business With A Standout Listing

Do you sell on Amazon? If so, you are in great company. At the end of 2022, Amazon had over 2 million active sellers worldwide, making it one of the largest e-commerce platforms in the world. Businesses have the opportunity to reach millions of customers in over 180...

Scroll, Click, Buy: How to Sell On Instagram

Do you have an Instagram shop? Instagram Shopping is quickly becoming the preferred way for consumers not only to learn about new brands and products on Instagram, but also to purchase them in just a few simple steps. If you are not already selling directly on...

New Year, New You?

Every year, millions of people make New Year’s resolutions, hoping to spark positive change, adopt new habits, or even reinvent themselves. The recurring themes each year include a more active approach to health and fitness, improved finances, better relationships,...