The Role of EDI in Supply Chain Management


The EDI in Supply Chain Management allows businesses to exchange data electronically using a standardized format. This helps reduce errors and costs associated with manual processes.

Today EDI in supply chain management is more important than ever, because of the pandemic several industries are affected by supply chain issues and the whole world is facing disruptions caused by delays in the supply chain.

EDI can give you the capabilities your business needs to create a well-integrated ecosystem and enable fast and secure exchanges of essential warehousing and shipping documents, including bills of lading, shipping status records, shipment authorizations, advanced shipment notices, customs documents, and inventory lists and many more.

5 Ways EDI In Supply Chain Management Can Help Your Business Grow

Reduce Costs by Eliminating Manual Data Entry

EDI in the supply chain is an open standard that enables electronic communication between trading partners. It provides a common language for exchanging business documents such as purchase orders, invoices, shipping labels, and packing lists.

Increase Productivity by Automating Processes

EDI in the supply chain helps businesses automate processes so they can focus on more strategic activities. This means that you can spend less time managing manual tasks and more time growing your business.

Gain Visibility into Inventory Levels

One of the biggest challenges for any company is knowing how much inventory they have at any given moment. With EDI in supply chain, you can gain visibility into inventory levels by using barcodes. Barcodes help you track inventory throughout the entire process, from production to distribution.

Boost Customer Service by Improving Communication

Another benefit of EDI in the supply chain is that it helps improve customer service. By communicating more efficiently, you can reduce the number of back orders and out-of-stock situations. This means customers will receive faster delivery times and less frustration.

Streamline Operations by Integrating Systems

EDI in the supply chain has been proven to help businesses streamline operations. It allows them to connect and share data across departments. This makes it easier for everyone involved to work together as a team.

3 Upcoming EDI Trends in Supply Chain Management (SCM)

As with every industry, there have been lots of new technological advancements in EDI here are some of the trends,

  1. Adopting Cloud EDI technology

Cloud EDI has completely redefined the EDI industry on how businesses exchange EDI documents.  Today businesses of all sizes use cloud EDI to exchange EDI documents from anywhere in the world with just the internet and web browser. You don’t require complicated integrations, no software to install, and does not require highly skilled EDI professionals.

  1. EDI and API Integrations

APIs can further help improve the EDI ecosystem. With many custom APIs, the EDI system can now integrate with many other internal business systems like ERPs, finance software, and many more. Making it easier for businesses to translate EDI documents that better suit their business systems. EDI and API integrations are still ongoing work and potentially bring a lot more applications in the years to come

  1. EDI in eCommerce

The eCommerce industry has grown significantly in the last 10 years especially post-pandemic the industry has seen rapid growth in many businesses stepping into eCommerce to increase their customer base. eCommerce removes the boundaries for businesses and allows them easily to enter a new market and target audience around the world. Now integrating EDI with e-commerce is providing endless opportunities for customers such as providing more choices, competitive pricing, fast shipping, real-time tracking, mobile support, and personalized shopping experiences.

Here is the list of EDI Transaction Document Codes used by the Supply Chain Industry (Logistics and Warehousing)

EDI X12 Transaction Number

 EDI Transaction Name / Document Type

EDI 883

Market Development Fund Allocation

EDI 884

Market Development Fund Settlement

EDI 886

Customer Call Reporting

EDI 891

Deduction Research Report

EDI 940

Warehouse Shipping Order

EDI 943

Warehouse Stock Transfer Shipment Advice

EDI 944

Warehouse Stock Transfer Receipt Advice

EDI 945

Warehouse Shipping Advice

EDI 947

Warehouse Inventory Adjustment Advice

EDI 990

Response to a Load Tender

EDI X12 Transaction Number

 EDI Transaction Name / Document Type

EDI 219

Logistics Service Request

EDI 220

Logistics Service Response

EDI 222

Cartage Work Assignment

EDI 223

Consolidators Freight Bill and Invoice

EDI 224

Motor Carrier Summary Freight Bill Manifest

EDI 225

Response to a Cartage Work Assignment

EDI 250

Purchase Order Shipment Management Document

EDI 853

Routing and Carrier Instruction

EDI 854

Shipment Delivery Discrepancy Information

EDI 856

Ship Notice/Manifest

EDI 857

Shipment and Billing Notice

EDI 858

Shipment Information

EDI 862

Shipping Schedule

EDI 882

Direct Store Delivery Summary Information

Affordable and Best EDI Solution for Supply Chain Management

For over 35 years, Commport Communications has been providing the most affordable and best EDI solutions in the market. By helping companies solve complex integration issues and providing complete EDI communication between business partners.

Improve your business process and maximize your supply chain performance with our EDI solutions. Contact us today for a free consultation and demo.

Ready to find out more about Commport EDI Solution?

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Need Help? Download: EDI Buyers Guide

Unlock the full potential of your supply chain with our comprehensive EDI Buyer's Guide — your first step towards seamless, efficient, and error-free transactions

Frequently Asked Questions

EDI in Supply Chain Management facilitates the electronic exchange of business documents like orders, invoices, and shipment notices, streamlining communication and enhancing efficiency throughout the supply chain

EDI improves collaboration by providing a standardized and automated means of communication. It ensures that trading partners share accurate and timely information, reducing delays and improving overall coordination in the supply chain.

Yes, EDI can be integrated with existing supply chain systems. EDI solutions are designed to interface with various enterprise resource planning (ERP) and warehouse management systems, ensuring compatibility and smooth integration.

EDI enhances supply chain efficiency by automating manual processes, reducing paperwork, minimizing errors, and accelerating the exchange of critical information. This results in faster order processing, improved inventory management, and enhanced overall operational efficiency.

Yes, EDI is suitable for businesses of all sizes in supply chain management. It offers scalable solutions that can be adapted to the unique needs and requirements of small, medium, and large enterprises, fostering improved communication and collaboration within the supply chain.

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