The studies conducted over time regarding the benefits of implementing EDI (Electronic Data Interchange) have repeatedly shown the same benefit, unanimously felt by respondents: following implementation, the visibility of orders and deliveries within the supply chain significantly increased.
This factor consistently ranks among the most important benefits that companies have experienced, and the reason is not hard to understand. The current business environment moves at a very rapid pace, making it crucial to have real-time information about every transaction that takes place. With this advantage on their side, companies can make important decisions more quickly and tend to respond better to the ever-changing demands of customers.
EDI transactions enhance the real-time visibility of order status within the supply chain. For example, if you are a manufacturer based in Romania, you can easily send your purchase order to a supplier in the UK, who can, in turn, send you an electronic document confirming that the desired product is no longer in stock. At this point, you can send the same document to a supplier in France, giving you the opportunity to quickly prevent a potentially catastrophic situation.
With this information at their disposal, companies can plan possible delays more clearly, manage blockages more effectively, as well as customer expectations. The use of Electronic Data Interchange (EDI) is indeed a very efficient preventive measure for unpleasant situations.
Let’s look at a few documents that increase visibility within the supply chain:
- Purchase Order Confirmation: This document is sent by the supplier confirming that they will fulfill the purchase order according to the requirements.
- Return Notice: The buyer is thus notified of the completion of a payment, generally through electronic funds transfer. This document allows the supplier to better organize themselves by informing them about the invoices issued for any of the payments.
- Order Transportation Status by the Courier Company: The courier company notifies the shipper or recipient about the status of the order. This document provides information about the destination point, estimated delivery date and time, as well as information regarding any potential delays, and so on.
- Shipping Advice: This document is essentially the electronic version of the packing label and confirms to the buyer that the goods have been shipped, providing information about the packaging method, as well as the estimated delivery date and time. A whole range of automated business processes relies on this crucial document, including drop-shipping, cross-docking, and the Evaluated Receipt Settlement process.
In conclusion, EDI is essentially the launching platform that enhances strategic benefits, especially when combined with other currently available business technologies. If you want to learn more, please contact us.
