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The Relationship Between EDI and Logistics

by | Jan 30, 2023 | Blog, Logistics

EDI has been a powerful complement to logistics for years now, turning once tedious and time-consuming processes into lightning-fast transactions. Effective EDI software can revolutionize the supply chain in businesses, big and small, transforming the way they carry out their logistics operations. But how does EDI work within logistics?

What is Logistics?

Logistics, or logistics management, is the process of directing supply chain duties such as handling orders, warehousing, transportation, inventory planning, determining demand, and more. These functions are necessary for almost every business, and they become difficult as the company expands and takes on more orders. Manual processes like data entry, faxing, and hand-written orders can take hours of valuable time out of a workday. That’s where EDI systems and software come into play.

How EDI Improves Logistics

EDI is essentially a standardized, electronic exchange of information between two businesses. Computerized EDI systems ensure they don’t have to manually handle paper documents, emails, or other slow forms of communication, which plays a vital role in logistics. Businesses can integrate EDI software into their everyday logistics operations, unlocking several key benefits that make EDI setup well worth it.

EDI increases productivity and saves time by turning mechanical tasks into a quick, automated process. Faster logistics, from invoices to shipping, means businesses can speed up their orders and spend more time elsewhere. Faster orders also mean happier customers.

The use of EDI improves data accuracy and security, too. Automated data input and organization allow for less human error and reduced fixing costs. Computerization also gives access to select people, keeping data safer from breaches.

These benefits point toward EDI as the fastest, safest way to operate logistics. But does EDI work in day-to-day logistics?

Common EDI Transactions

EDI fulfills logistics operations using transaction codes, which are three-digit numbers that correspond to specific transactions. One common transaction code is an EDI 940, which tells a warehouse to pack and deliver a product to a listed address. Other transaction codes signal product shipments, reservations, pickup orders, invoices, and more. EDI simplifies dozens of logistics processes.

Additional details such as inventory, purchase history, tracking numbers, supply/demand counters, and more can be derived from EDI systems because everything is stored and computerized. EDI allows businesses to get more use out of logistics than manual filing can.

EDI Compliance

It’s essential to ensure that your business is EDI compliant to carry out logistics operations with many larger companies. Most big retailers today require EDI systems for B2B communications, and transactions must be in a standard EDI format to collaborate successfully. If businesses don’t receive orders or send out shipping notifications on time, they can receive chargebacks and fines for non-compliance. Proper EDI systems will prevent costly mistakes for your business.

Integrating EDI into your business’s logistics operations can seem intimidating, but eVantage Direct can help. Using robust sales and warehouse management software, eVantage Direct can streamline all your most complicated and tedious logistics tasks into an easy-to-use automated system. Check out eVantage Direct’s products and services today to see how your business can grow with EDI logistics.


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