Tag: Electronic Data Interchange

What is EDI Integration?

What is EDI Integration?

EDI integration means setting up a full EDI workflow between trading partners to exchange business documents. This includes establishing endpoints, protocols, and EDI document transactions that you exchange with your trading partner and also translating those documents into a format that can be used by your internal order management, ERP, or accounting systems. Thus, integration enables the seamless transfer of EDI data to and from other systems, eliminating the need for manual data entry and reducing errors.

Types of EDI Integration - Commport Communications

In today’s digital world, businesses that are utilizing EDI technology to their fullest are the ones who are achieving an exceptional increase in their supply chain operational efficiencies by automating the entire process of EDI document exchange and improving overall trading partner relationships by achieving 100% EDI compliance.

Types of EDI Integration

There are 3 types of EDI integrations.

  1. Direct EDI Integration
  2. Indirect EDI Integration
  3. Hybrid EDI Integration

1. Direct EDI integration

Direct EDI Integration - Commport Communications

A direct EDI integration uses a specific protocol such as FTP, sFTP, or AS2 to create a point-to-point connection between your trading partners and Internal ERP or accounting system. In this type of setup, the businesses manage thousands of individual partners’ connections to bring in the data from their trading partners to internal ERP systems. This system becomes too complex to manage as we add more connections and could become difficult to scale or manage over time as your business grows. This type of setup is more suitable for small businesses that only deal with a limited number of trading partners.

2. Indirect EDI Integration

Indirect EDI Integration - Commport Communications

In an indirect EDI integration set up the exchange of communication between your trading partners and ERP is achieved using a 3rd party EDI VAN.  First, the message from your ERP system for your trading partner goes out to the VAN and then the VAN splits the message into the format that is preferred by your trading partners and sends it to them. This type of integration is more suitable for medium to large enterprises as they would deal with hundreds of trading partners and they don’t have to set up a separate connection for each one or worry about different protocols to be used, as the VAN can connect to any protocol and transmit the message to the correct trading partner irrespective of the trading partner protocol requirements.

3. Hybrid EDI Integration

Hydrid EDI Integration - Commport Communications

Just like how you have hybrid cars which switch between gasoline and electric to enhance the overall experience and help you save some dollars on gasoline. In a hybrid EDI integration sometimes, companies may need both direct and indirect integration to accommodate various trading partner needs. Like for example if you deal with a specific trading partner with large volumes of data daily it makes sense to connect with them using a direct point-to-point integration to avoid processing delays or connection errors. However, to deal with other small to medium trading partners you can use indirect EDI integration. So, you basically need a combination of managed EDI service and a point-to-point setup to exchange EDI data.

How Can a EDI Integration Services by Commport Communications Can Help Your Business Operations?

1. Workflow Automation

Helps improve your overall business operations by automating order processing, invoicing, packing, and shipping. Streamlines messaging across multiple trading partners.

2. Data Transparency & Security

A stand-alone centralized system for all your data exchange needs in a standardized format. Easy order tracking with real-time data. Enabling accurate fulfillment, and delivery, reduced errors, and increase sales. Securing the data exchange by using protocols such as AS2 or sFTP and providing world-class support with uninterrupted exchanges. Transaction traceability, redundant in-house data hosting centers, and business continuity and recovery plans.

3. Best Support Services

Using Commport as a EDI vendor for your integrations can help you not only just with integration challenges but also help you manage the entire EDI system, by providing you with on boarding support, implementation, compliance testing, and 24/7 emergency support with error monitoring and issue resolution.

4. Support Multiple Fulfillment Models & Agile

Businesses can have multiple fulfillment models to deliver products to their partners. It could be D2C (direct to consumer), ship to 3PL provider, ship to store directly, ship to distribution center (DC), and many more models. Our Team of EDI experts will ensure 100% complaint with your needs and current technologies.

5. Pre-Built & Established EDI Mapping

Commport has a pre-built mappings with hundreds of trading partners across the world. Complaint with many EDI standards including the most popular standards like ANSI X12 Standard and EDIFACT standards. Because of this existing pre-built mapping, it is faster to connect with the trading partner and start exchanging EDI documents in a few days rather than waiting for weeks or months.

5 Benefits of EDI Integration

  1. Improved Efficiency: Integrating with EDI eliminates the need for manual data entry, reducing the time and effort required to process business transactions. This can improve operational efficiency and productivity.
  2. Cost Savings: EDI integration can reduce costs associated with paper-based processes, such as printing, postage, and document storage. Additionally, It also help businesses avoid costly errors and delays caused by manual data entry.
  3. Better Communication: EDI enables real-time data exchange between systems, improving communication between businesses and their trading partners. This can lead to better collaboration and a more seamless supply chain.
  4. Increased Accuracy: EDI can help reduce errors and inconsistencies in data by automating data entry and validation. This can help ensure that information is accurate and up to date.
  5. Scalability: EDI can be easily scaled as businesses grow and their integration needs change. APIs and middle ware can be added or modified to accommodate new systems and applications.

Why Choose Commport as Your EDI Service Provider?

  1. Become 100% EDI Complaint which is a mandatory requirement by most trading partners,
  2. Avoid costly chargebacks by eliminating manual data entry and automating the entire EDI exchange process in a standardized format.
  3. Improve operational efficiency, increase your profits, and improve your relationships with your trading partners.
  4. Eliminate the complexity of developing your own in-house EDI solution and save costs.
  5. It’s easy to integrate with hundreds of trading partners as Commport has pre-built mappings with all major trading partners.

Conclusion

EDI integration can provide significant benefits to businesses looking to improve their supply chain operations. By automating data entry and validation, EDI integration can reduce errors, improve efficiency, and save costs. With the ability to scale and adapt to changing business needs, EDI solutions can be a valuable for businesses of all sizes to improve b2b communication and maintain good relationships with your trading partners.

Frequently Asked Questions

The Role of EDI in eCommerce and Online Retail

The Role of EDI in eCommerce and Online Retail

EDI in eCommerce facilitates business document exchange such as purchase orders, invoices, and shipping notices between trading partners and customers in a standardized format.

Role of EDI in Ecommerce
Commport Industries - Retail

Introduction

Define eCommerce

E-commerce stands for electronic commerce. It makes buying and selling products or services easy by using the internet. It makes use of various digital technologies such as websites, mobile apps, and social media to process online transactions between buyers and sellers.

Ecommerce stores help customers browse through products and facilitates the purchase of products or services using electronic payment methods such as credit cards, debit cards, e-wallets/digital wallets, and bank transfer.

The advent of e-commerce has transformed the business landscape and has presented new opportunities for entrepreneurs and consumers alike to reach global marketplaces.

Interesting EDI and eCommerce Stats

 

Here are some statistics that illustrate how Electronic Data Interchange (EDI) is helping the e-commerce industry:

 

  1. According to recent industry calculations, Brazil will rank first among 20 countries worldwide in retail e-commerce development between 2023 and 2027, with a compound annual growth rate of 14.6 percent. Argentina and Turkey are also among the fastest-growing e-commerce markets globally, with a CAGR of over 14 percent. The global retail e-commerce CAGR was estimated at 11.3 percent during the same period.

 

  1. According to a study by Grand View Research, the global EDI market size is expected to reach USD 3.89 billion by 2025, growing at a compound annual growth rate (CAGR) of 10.8% from 2019 to 2025. The increasing adoption of EDI in e-commerce is one of the key drivers of this growth.

 

  1. A study by GS1 US found that businesses that implement EDI can save up to 40% in procurement, order processing, and invoice handling costs. This can result in significant cost savings for businesses engaged in e-commerce.
Ecommerce stats by country

How EDI is Integrated into an eCommerce Store?

 

Electronic Data Interchange (EDI) plays a crucial role in standardizing and automating the exchange of business documents between trading partners in the e-commerce industry. By using standardized EDI formats and automated systems, eCommerce businesses can improve the speed, accuracy, and cost-effectiveness of their transaction processing. EDI streamlines the processing of orders, invoices, and shipping notices, enabling businesses to provide better customer service and enhance customer satisfaction.

Here is an example of a real-time scenario of how an EDI system helps communication between an eCommerce company, its customer, and its trading partner.

Let's say that an e-commerce company named ABC sells a variety of products, including computer hardware and software, and has a trading partner named XYZ, which supplies the hardware products. ABC's customer, Mark, wants to buy a computer from ABC's website. Here's how the EDI system can facilitate communication between all parties involved:

  1. Mark visits ABC's website and places an order for a computer.
  2. ABC's e-commerce platform generates a purchase order in EDI format, which includes all the details of the order, such as the product description, quantity, price, and delivery date.
  3. The purchase order is automatically sent to XYZ's EDI system, which processes the order and generates an electronic invoice in EDI format.
  4. The invoice is automatically sent to ABC's EDI system, which processes the invoice and generates an automated payment.
  5. The payment is automatically sent to XYZ's EDI system, which processes the payment and ships the product.
  6. Once the product is shipped, XYZ's EDI system generates a shipping notice in EDI format, which includes the tracking number and estimated delivery date.
  7. The shipping notice is automatically sent to ABC's EDI system, which processes the notice and sends a notification to Mark, including the tracking number and estimated delivery date.

 

By using an EDI system, the entire process of ordering, invoicing, payment, and shipping can be streamlined and automated, reducing the need for manual intervention and human error. This, in turn, can improve the speed and accuracy of communication between all parties involved, ultimately enhancing customer satisfaction and loyalty.

Benefits of using EDI in eCommerce

EDI is a vital technology for businesses in eCommerce. It helps increase business efficiency, improve accuracy, enhance customer service, saves thousands of dollars, and provide a competitive advantage.

EDI in eCommerce facilitates business document exchange such as purchase orders, invoices, and shipping notices between trading partners and customers in a standardized format. EDI in eCommerce makes communication easier with suppliers, distributors, and customers. For example, a retailer may use EDI to receive purchase orders from their suppliers, send shipping notices to their logistics providers, and receive invoices from their vendors. EDI allows these transactions to be processed quickly and accurately, without the need for manual data entry or paper-based documents.

1. Increased Efficiency

EDI eliminates the need for paper-based documents, manual data entry, and human intervention, streamlining transaction processing and improving operational efficiency

2. Improved Accuracy

EDI reduces the risk of errors that can occur with manual data entry, providing businesses with more accurate and reliable information

3. Enhanced Customer Service

By enabling faster and more accurate processing of orders, invoices, and shipping notices, EDI can help businesses provide better customer service and improve customer satisfaction.

4. Cost Savings

EDI reduces printing, storage, and labor costs, while also minimizing the risk of costly errors.

5. Competitive Advantage

Businesses that use EDI are better positioned to compete in e-commerce markets by operating more efficiently, responding more quickly to customer demands, and reducing costs

Types of EDI documents used in eCommerce

Most EDI solutions can integrate directly with your E-commerce store to enable seamless communication between partners and customers.  Many e-commerce platforms support EDI standards, such as ANSI X12, EDIFACT, and XML, which define the syntax and structure of the electronic documents exchanged between trading partners.

The following are some common types of EDI X12 documents used in e-commerce:

  1. 850 Purchase Order: The 850 transaction set is used by buyers to send purchase orders to suppliers. It includes information such as buyer and supplier details, item numbers, quantities, prices, and delivery dates.
  2. 855 Purchase Order Acknowledgment: The 855 transaction set is used by suppliers to confirm the receipt of a purchase order. It contains information such as the purchase order number, date, and acceptance or rejection of the order.
  3. 856 Advanced Shipping Notice: The 856 transaction set is used to provide buyers with information about the shipment of goods from the supplier. It includes details such as ship date, carrier name, tracking number, and item details.
  4. 810 Invoice: The 810 transaction set is used by suppliers to send invoices to buyers. It contains information such as supplier and buyer details, invoice number, date, and item information, including quantities and prices.
  5. 997 Functional Acknowledgment: The 997 transaction set is used to confirm receipt of EDI documents by the trading partner. It includes details such as document control number, date and time of receipt, and any encountered issues or errors during processing.
  6. 820 Payment Order/Remittance Advice: The 820 transaction set is used by buyers to send payment orders and remittance advice to suppliers. It includes details such as payment amount, invoice number, and payment date.

Future of EDI in eCommerce

Emerging technologies that will impact EDI in eCommerce

Several emerging technologies have the potential to impact EDI in e-commerce in the near future. These technologies include blockchain, artificial intelligence (AI), the Internet of Things (IoT), machine learning (ML), and cloud computing.

  1. Blockchain technology has the potential to enhance the security, transparency, and traceability of EDI transactions by creating a tamper-proof ledger. This can help prevent fraud, errors, and disputes in e-commerce transactions.
  2. Artificial intelligence and machine learning algorithms can help analyze large quantities of data from EDI transactions and spot important patterns and trends to help forecast product demands, improve supply chain operational efficiency, and improve overall customer satisfaction.
  3. Using smart IoT devices e-commerce companies can collect real-time data on inventory, delivery, and customer preferences.
  4. Advancement in cloud computing technology has made it possible to develop cloud-based EDI solutions which can be used from anywhere in the world with just an internet connection and a computer. No need to install any complicated software or require any big IT infrastructure and its also affordable for businesses of all sizes.

Conclusion

The growth of eCommerce has been phenomenal in the past decade and the trend is continuing to grow as more and more Millennials and Gen Z are using online to buy/sell products. To support such rapid growth eCommerce technology needs to be agile and must fit into market demand. To achieve such a level of performance eCommerce platforms are integrating with EDI systems to speed up and automate procurement, order processing, and invoice handling.

Why Choose Commport as Your EDI Provider?

  1. Over 35+ years of experience in providing a wide range of innovative and comprehensive supply chain management solutions for Electronic Commerce (EC)
  2. Trusted by over 6000+ brands
  3. Never have to worry about your EDI implementation challenges, our team will support you with all your integration challenges
  4. Commport EDI solutions can automate your entire EDI communication process and improve your business efficiency and cash flow
  5. Dedicated account manager and multilingual support. Our support staff can speak in English, Spanish and French

Ready to find out more about Commport EDI Solutions?

Drop us a line today for a free quote!

Commport EDI Solutions

Frequently Asked Questions

 

What is eCommerce?

E-commerce stands for electronic commerce. It makes buying and selling products or services easy by using the internet

What is EDI in eCommerce?

EDI in eCommerce facilitates business document exchange such as purchase orders, invoices, and shipping notices between trading partners and customers in a standardized format.

Benefits of using EDI in eCommerce

Increased Efficiency, improved accuracy, enhanced customer service, cost savings and competitive advantage.

Common EDI documents used in eCommerce

Purchase orders, purchase order Acknowledgment, invoice, advance ship notices, payment order remittance.

What is B2B Commerce?

B2B commerce, which stands for business-to-business commerce, involves the exchange of goods or services between companies rather than between businesses and individual consumers. In this type of commerce, buyers and sellers are typically organizations or enterprises that require products or services to support their own operations or to resell to their customers. B2B commerce can be carried out through various channels, such as e-commerce websites, electronic data interchange (EDI), phone, email, or in-person meetings, and can encompass transactions of various sizes and complexities.

10 Ways EDI Can Improve Supply Chain Efficiency

10 Ways EDI Can Improve Your Supply Chain Efficiency

Before we get started on how to optimize and improve supply chain efficiency, it is important to define and know what is supply chain management and its importance in the end-to-end delivery of final products to customers.

10 Ways EDI Can Improve Supply Chain Efficiency
supply chain visibility

What is supply chain management?

Supply chain management is the process of managing and perfecting procurement, the flow of materials, and the delivery of products and services from source to destination (i.e., from suppliers to customers). It involves integrating all the supply chain components such as planning, controlling, coordinating, and integrating suppliers, inventory control, manufacturing process, material handling, transportation management, and information technology. The main goal of supply chain management is to deliver value to customers while maximizing efficiency in cost and throughput time

What is supply chain efficiency?

In simple terms supply chain efficiency means maximizing your supply chain output by reducing costs. It is the way in which the resources are optimized to deliver goods and services to customers faster and on time with minimal cost. There are other factors that also affect your supply chain efficiencies such as operations capabilities, inventory demand from customers, and technology challenges.

supply chain efficiency - Commport Communications
Supply chain operational - Commport Communicationscosts

1. EDI helps brings down your supply chain operational costs significantly

To reduce your operational costs, the first thing you need to estimate is which customers drive the highest level of revenue to your business. Conduct an effective cost-to-serve analysis and this can be done with accurate and real-time invoicing using EDI.

Once you have a detailed cost-to-serve analysis you can accurately estimate the profit margins for each customer and identify the ones which are not profitable and then you can optimize your supply chain to do things differently and more efficiently to reduce your operational costs by automating your order processing, inventory management and having greater control over your distribution networks.

Usually, mistakes in your purchase orders and invoicing can also lead to costly charge backs for thousands of dollars from your business partners and these mistakes happen if you still process your data manually. This can be avoided by using EDI which can automate your entire document exchange process in a standardized format that is widely accepted by all major retailers and make your business EDI-compliant.

2. EDI helps you forecast product demands to better plan your supply and demand needs

Effective EDI solutions update all your data such as orders, invoicing, shipping, returns, etc. in real-time. Access to such real-time data can help you forecast demand for certain products. Identifying which products are selling fast and which are not. This way a retailer can plan effective inventory management by stocking up for the products with high demand in advance and not keeping too much inventory for slow-moving products. All these forecasting metrics can help you better optimize your supply chain efficiency to get your products delivered on time to your customers.

forecast product demands - commport communications
Inventory management

3. EDI helps you with better inventory management with real-time data

Inventory management is crucial for all businesses. It’s not just about holding up stocks, but also how fast these stocks are moving out from the warehouse to customers. The longer the time the stock is held up in the warehouse the more costs are added to inventory management. A business using EDI for inventory management can check their stocks daily or hourly giving them real-time updates on stock movement, speeding up the order processing, and delivering products faster to customers by better-optimizing delivery routes. Also, the chance of errors in order processing is reduced significantly using EDI as it’s all processed automatically without manual intervention which in turn reduces any delays in order processing and reaching customers faster.

4. Improved order-to-cash-cycle

The order-to-cash cycle decides how fast the business receives the payment in full for the products purchased by the customers. The longer it takes, it affects the overall business cash flow, which in turn affects the net operating income for the business. In the manual process scenario, this could assume to 2 weeks because the business must fax the invoice to the customer and then the customer enters the invoiced data into the system manually and then tally the products purchased with goods received, and then makes the payment. This entire process delays the overall order-to-cash cycle process.

By using EDI this entire process can be automated and processed in minutes rather than days. Automated EDI systems can also integrate with other areas of your business-like inventory tracking, ERP software, or customer relationship management (CRM) programs for a more comprehensive view of all processes. Additionally, using dashboards or reporting tools can be crucial for analyzing key metrics like days sales outstanding (DSO) which shows how quickly customers are paying you.

order-to-cash-cycle - commport communications
Improves trading partner relationships - commport communications

5. EDI Improves trading partner relationships

Today almost 90% of all retailers require their vendors/suppliers to be EDI-compliant to do business with them. EDI makes it easy to exchange data electronically such as invoices, purchase orders, advance ship notices, and hundreds of other EDI document types. There are many EDI standards accepted by trading partners/retailers. But the 2 most popular EDI standards are EDI X12 and UN/EDIFACT standard.

Being EDI compliant means it’s an opportunity as a supplier to stand out from others who are not compliant and easily scale your business by exchanging EDI with all major retailers and gaining access to a global network of customers and retailers all over the world.

6. Using cloud-based EDI you can do business from anywhere

Cloud-based EDI solutions are the game changer for the EDI industry. It’s the most economical EDI solution and easy to use. The best part is you don’t need to install any complicated software. You can access it from anywhere in the world with just a computer and internet connection and you can begin exchanging EDI with your trading partner today. You don’t need to be an expert or require any complex training to use cloud-based EDI solutions, they have user-friendly interfaces. Also, it’s easy to keep track of all your EDI transactions in one single dashboard.

cloud-based EDI
transform your value chain

7. EDI helps transform your value chain

A value chain is a system of activities that starts with the task of supplying raw materials and ends with the delivery of a finished product or service. It looks at all the activities that are necessary to add value to a good or service as it flows through the supply chain, from suppliers to customers. Each step in the process adds value which can then be passed on to the end customer, resulting in profit for the company. By understanding the multiple stages of a value chain, companies can better manage costs and improve product or service quality.

EDI can play a key role in each stage of the value chain to improve your overall supply chain operational efficiency and reduce costs. This involves improving relationships with suppliers who can supply quality, cost-effective products that meet customer expectations. Additionally, suppliers should be able to support current and future demand for the products and keep open communication by providing continuous updates. With much valuable data, you can spot trends in real-time in understanding customer buying habits which allows you to optimize your value chain performance to better meet customer demands.

8. Improved customer experience

EDI helps streamline all your communications. Your customers can get an automatic update on orders, shipments, on-time delivery dates on time, returns and so much more. It enhances transparency by providing accurate information on their transactions.  Makes the customer experience better and turns them into loyal customers.

customer experience
supply chain visibility

9. Better supply chain visibility

EDI helps you with supply chain visibility by monitoring your supply chain performance in real-time, providing valuable insights on various resources with up-to-date information on the movement of goods and materials. All the data gathered can be used to optimize resource management, identify potential problems or delays in the supply chain and make improvements and reduce overall operational costs.

10. Improved data accuracy helps you make informed decisions.

As we already know, EDI makes data exchange easy by replacing the old paper-based system with electronic data exchange. It is not just the speed at which the data is exchanged is improved but also its accuracy. EDI makes sure you receive 100% accurate information without any errors that let you make informed decisions on various aspects of your supply chain to better scale its efficiency.

Improved data accuracy

Why Choose Commport as Your EDI Provider?

  1. Over 35+ years of experience in implementing EDI solutions.
  2. Helped over 6000+ brands/trading partners to become EDI compliant
  3. On boarding new partners will be easy as we already have existing connections with all major trading partners
  4. Never have to worry about your EDI implementation challenges, our team will support you with all your integration challenges
  5. Automate your entire EDI communication process and improve your business efficiency and cash flow
  6. Dedicated account manager and multilingual support. Our support staff can speak in English, Spanish and French

Ready to find out more about Commport EDI Solutions?

Drop us a line today for a free quote!

Commport EDI Solutions

Frequently Asked Questions

How EDI is Used in the Food & Beverage Industry

How EDI is Used in the Food & Beverage Industry

EDI in Food & Beverage Industry

The supply chain in the food and beverage industry involves the movement of raw materials, ingredients, and finished products from producers to manufacturers, distributors, and ultimately, to consumers. The supply chain can be complex, involving multiple stakeholders and processes, including sourcing, production, storage, transportation, and distribution.

Supply chain management is critical for ensuring the safety and quality of products, as well as for meeting the demand of consumers. It is also important for managing costs and maximizing efficiency.

To optimize their supply chain, companies may use various tools and technologies, such as inventory management systems, transportation management systems, and demand forecasting tools. They may also adopt supply chain best practices, such as implementing lean manufacturing techniques, using just-in-time (JIT) inventory systems, and adopting a collaborative approach to working with suppliers and other stakeholders

EDI is one of the commonly used technology in the food and beverage industry for exchanging a variety of documents, including orders, invoices, shipping notices, and product information.

Using EDI can improve the efficiency of business processes and reduce the risk of errors in the exchange of information. For example, EDI can be used to automatically place orders with suppliers, track shipments, and manage inventory. This can help food and beverage companies to reduce costs and improve their supply chain management.

In addition to using EDI to exchange information with suppliers and other business partners, food and beverage companies may also use EDI to communicate with government agencies and regulatory bodies. For example, EDI can be used to transmit food safety reports or to meet requirements for traceability and product recall.

 

There are several supply chain solutions that can help food and beverage companies to improve their operations and manage their supply chain more efficiently. These solutions include:

Inventory management

1. Inventory Management

Automated inventory management systems can help food and beverage companies to track and manage their inventory in real time, ensuring that they have the right products in stock at the right time\

it can help to minimize the costs associated with holding too much or too little inventory, such as storage costs or lost sales. It can also help businesses to reduce waste and improve efficiency by ensuring that inventory is used efficiently and effectively.

There are several key strategies that businesses can use to manage their inventory, including:

  1. Just-in-time (JIT) inventory: This involves keeping only the minimum amount of inventory needed to meet demand, and ordering more as needed. This can help to reduce storage costs and minimize the risk of holding excess inventory.
  2. Economic order quantity (EOQ): This involves determining the optimal order size for inventory based on factors such as the cost of placing an order, the cost of holding inventory, and the demand for the product.
  3. Safety stock: This is a buffer of inventory that is kept on hand to ensure that the business can meet demand even if there are unexpected delays in the supply chain.
  4. Inventory turnover: This is a measure of how quickly a business is selling its inventory. A high inventory turnover can indicate that the business is effectively managing its inventory and meeting customer demand.
  5. Inventory accuracy: This involves accurately tracking and counting the inventory that a business has on hand, to ensure that it has accurate data on which to base its inventory management decisions.

2. Supply Chain Visibility

Supply chain visibility solutions can provide real-time tracking and visibility of shipments, enabling food and beverage companies to quickly identify and resolve any issues that may arise

There are several ways that businesses can improve supply chain visibility, including:

  1. Implementing real-time tracking and monitoring systems: This can involve using technologies such as RFID (radio-frequency identification) tags, GPS tracking, and sensors to track the movement of goods and materials in real-time.
  2. Standardizing data and communication: By using standardized data formats and communication protocols, businesses can ensure that they have a consistent and accurate view of their supply chain.
  3. Collaborating with partners: By working closely with suppliers, manufacturers, and other partners in the supply chain, businesses can gain a more comprehensive view of their supply chain.
  4. Using analytics and artificial intelligence: By analyzing data from various sources, businesses can gain insights into their supply chain and identify opportunities for improvement.
supply chain visibility
transportation management

3. Transportation Management

Transportation management systems can help food and beverage companies to optimize their shipping routes and reduce costs by finding the most efficient and cost-effective carriers.

There are several key tasks involved in transportation management, including:

  1. Route planning: This involves determining the most efficient and cost-effective route for transporting goods from one location to another.
  2. Capacity planning: This involves determining the amount of capacity needed to transport goods and ensuring that there is enough capacity available to meet demand.
  3. Freight management: This involves coordinating the movement of goods by road, rail, air, or sea, and managing the associated logistics, such as customs clearance and documentation.
  4. Mode selection: This involves deciding which mode of transportation to use for a particular shipment, based on factors such as cost, speed, and reliability.
  5. Carrier selection: This involves selecting the most suitable carrier to transport goods based on factors such as cost, reliability, and capacity.

4. Demand Forecasting

Demand forecasting solutions can help food and beverage companies to predict future demand for their products and adjust their production and inventory levels accordingly.

There are several methods that businesses can use to forecast demand, including:

  1. Time series analysis: This involves analyzing historical data on sales and other demand-related metrics to identify trends and patterns.
  2. Causal forecasting: This involves using statistical models to identify the key drivers of demand, such as economic indicators, and using these drivers to forecast future demand.
  3. Judgmental forecasting: This involves using expert judgment and knowledge of the market to make predictions about future demand.
  4. Machine learning: This involves using algorithms and data to automatically identify patterns and trends in demand data, and using these insights to make predictions about future demand.

Accurate demand forecasting is critical for businesses, as it can help to ensure that they have the right products and resources in place to meet customer demand and maximize profits. However, forecasting can be challenging due to the complexity of the market and the potential for unforeseen events to impact demand. As a result, businesses may need to use a combination of forecasting methods and continuously update their forecasts to ensure that they remain accurate and relevant.

Product demand forecasting
Collaboration and communication

5. Collaboration and Communication

Collaboration and communication tools can help food and beverage companies to collaborate with their suppliers, customers, and other stakeholders more effectively, improving the efficiency of their operations.

Here are some key ways that collaboration and communication can benefit businesses:

  1. Improved decision-making: By involving team members from different departments and levels of the organization in decision-making processes, businesses can tap into a wider range of perspectives and expertise, leading to more informed and effective decisions.
  2. Enhanced problem-solving: By fostering a culture of collaboration, businesses can encourage their employees to work together to identify and solve problems, leading to more innovative and effective solutions.
  3. Increased productivity: Effective communication and collaboration can help to reduce duplication of effort and minimize misunderstandings, leading to increased efficiency and productivity.
  4. Enhanced customer satisfaction: Collaboration and communication can help businesses to better understand their customers' needs and expectations, leading to improved customer satisfaction.
  5. Stronger relationships: By fostering open lines of communication and promoting collaboration, businesses can build stronger relationships with their employees, customers, and partners.

Benefits of EDI in the Food and Beverage Industry

Faster orders, shipment, and payment processing

Automate data exchange such as invoices, purchase orders, ship notices, payment remittances, and more

Improves data accuracy. Automating the data exchange between business partners

Supply chain visibility provide real-time tracking and visibility of shipments

Regulatory compliance – This enables you to trace and track the source of raw materials that came to satisfy regulatory requirements

Common EDI Transaction Codes Used by Food & Beverage Industry

EDI X12 Transaction Number

EDI Transaction Name / Document Type

 URL

EDI 180

Return Merchandise Authorization and Notification

 Read More

EDI 290

Cooperative Advertising Agreements

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EDI 810

Invoice

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EDI 816

Organizational Relationships

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EDI 832

Price/Sales Catalog

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EDI 846

Inventory Inquiry/Advice

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EDI 850

Purchase Order

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EDI 855

Purchase Order Acknowledgment

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EDI 856

Ship Notice/Manifest

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EDI 857

Shipment and Billing Notice

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EDI 860

Purchase Order Change Request - Buyer Initiated

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EDI 865

Purchase Order Change Acknowledgement/Request – Seller Initiated

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Why Choose Commport as Your EDI Provider?

  1. Over 35+ years of experience in implementing EDI technology. Helped over 6000+ brands/trading partners to become EDI compliant
  2. On boarding new partners will be easy as we already have existing connections with all major trading partners
  3. Never have to worry about your EDI implementation challenges, our team will support you with all your integration challenges
  4. Automate your entire EDI communication process and improve your business efficiency and cash flow
  5. Dedicated account manager and multilingual support. Our support staff can speak in English, Spanish and French

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Frequently Asked Questions

What are EDI Payments?

What are EDI Payments?

EDI payment process involves the exchange of electronic documents and the automation of financial transactions, allowing businesses to streamline and automate their financial processes.

What are EDI Payments

Introduction to EDI Payments

EDI payments refer to the use of EDI to facilitate the exchange of payment information between two parties. This can include information such as the amount of the payment, the payment method, and any relevant details about the payment, such as the invoice number or the reason for the payment.

EDI is not a form of payment. It is a data format used for computer-to-computer data and message exchanges for a variety of payment and payment-related processes. EDI, unlike EFT and ACH, is typically used to format business invoices and remittance information.

EDI payments can be used for a variety of purposes, including paying invoices, making employee payroll payments, and settling accounts between businesses. EDI payments are typically faster and more efficient than traditional paper-based payment methods, as they can be processed automatically and do not require manual intervention. They also reduce the risk of errors or fraud, as the information is transmitted electronically rather than entered manually.

An EDI payment uses globally accepted standards to transmit payment data between your customers, suppliers, and trading partners. Since EDI payments are quick and use a consistent way of exchanging data, businesses across industries use it via a direct connection to their trading partners, or they outsource the EDI connections via VANs/brokers.

What payment-related information is exchanged using EDI Transactions?

Details of the payer and payee: Name and address

Payment information: Credit/debit card or bank information

Transaction details: invoice number, purchase order, reference number

Currency: The total amount in the currency to be exchanged

Check or payment number & Payment amount

The payment date/remittance date

What is an example of an EDI Payment Transactions?

Remittance information

Invoices

Purchase Orders

Inventory and customs documents

Shipping Notices

Bills of Lading

Manual Payment Process Vs EDI Payment Process

Manual Payment Process

The manual payment process typically involves the following steps:

  1. Generating an invoice: A business generates an invoice and sends it to the customer, either by mail or electronically.
  2. Receiving payment: The customer reviews the invoice and decides how to pay it. This may involve writing a check or making an electronic payment using a credit card or online payment service.
  3. Processing payment: The business receives the payment and processes it manually, either by depositing the check or entering the payment information into their accounting software.
  4. Recording payment: The business records the payment in their financial records and updates the customer's account to reflect the payment.

Overall, the manual payment process involves a series of manual steps that can be time-consuming and prone to errors. In contrast, EDI payments allow businesses to automate and streamline their financial processes, improving efficiency and reducing the risk of errors.

EDI Payment Process

The EDI payment process typically involves the following steps:

  1. Setting up an EDI system: To use EDI payments, businesses must first set up an EDI system, which involves installing software and establishing connectivity with trading partners.
  2. Sending and receiving EDI documents: Once the EDI system is set up, businesses can begin sending and receiving EDI documents, such as invoices and payment instructions. These documents are typically transmitted via a secure network or through an EDI service provider.
  3. Validating and processing EDI documents: When an EDI document is received, it must be validated to ensure that it is complete and conforms to the necessary standards. If the document is valid, it can be processed automatically or manually, depending on the business's preferences.
  4. Making or receiving payments: If the EDI document contains payment instructions, the payment can be processed automatically through the EDI system. This may involve debiting or crediting the appropriate bank accounts or other financial accounts.

Why Businesses Should Use EDI Payments?

EDI payments can help businesses streamline and automate their financial processes, improving efficiency and saving time and resources. By automating manual tasks such as invoice processing, businesses can reduce the risk of errors and improve the accuracy of their financial data.

EDI payments can also help businesses save money on paper, printing, and postage costs, as well as streamline their supply chain processes. For example, the EDI 820 payment, which is a type of EDI transaction specifically designed for handling payment instructions, can help businesses automate the payment process and reduce the need for manual intervention.

Overall, EDI payments offer a number of benefits to businesses looking to improve their financial processes and reduce costs. By using EDI payments, businesses can streamline their financial operations and improve their productivity, making it easier to focus on other important tasks.

5 Benefits of Using EDI For Payment Processing

1. Efficiency: EDI payments can be processed automatically, which reduces the need for manual intervention and helps to streamline the payment process. This can save time and reduce the risk of errors.

2. Accuracy: EDI payments are less prone to errors than manual payment methods, as the information is transmitted electronically rather than entered manually. This can help to reduce the risk of fraud and ensure that payments are made accurately and on time.

3. Cost savings: EDI payments can help to reduce the costs associated with processing payments, as they eliminate the need for paper-based processes and can be transmitted electronically at a lower cost than traditional payment methods.

4. Improved cash flow: EDI payments can help to improve cash flow by enabling faster payment processing and reducing the risk of errors or delays. This can help businesses to manage their finances more effectively.

5. Improved relationships with suppliers: EDI payments can help businesses to maintain good relationships with their suppliers by making timely and accurate payments. This can help to strengthen the overall supply chain and encourage supplier loyalty

Who Uses EDI Payments?

EDI payments are used by a wide variety of businesses and organizations in many different industries. They are particularly common in industries where there is a large volume of transactions and where there is a need for fast and efficient payment processing, such as:

Manufacturing

EDI payments are often used by manufacturers to pay for raw materials, supplies, and other goods and services.

Retail

Retail businesses often use EDI payments to pay for goods and services from suppliers and to process employee payroll payments.

Healthcare

EDI payments are frequently used in the healthcare industry to facilitate the exchange of payment information between healthcare providers and payers, such as insurance companies.

Government

Many government agencies use EDI payments to facilitate the exchange of payment information with vendors and contractors.

Financial services

Financial institutions and other businesses in the financial services industry often use EDI payments to process transactions and transfer funds between parties.

EDI Payments - Industry

Difference Between EDI, ACH, and EFT

Often EDI (electronic data interchange), EFT (electronic funds transfer), and ACH (automated clearing house) are mistaken as similar processes, but they can be used together to facilitate the payment information and the payment. So, while EDI helps exchange bank details, payee names, and other important details, EFT is an act that protects consumer rights and defines the bank’s responsibilities to monitor electronic fund transfers. And ACH is a type of electronic payment under EFT that you can use to make a payment between banks

EDI

EDI (Electronic Data Interchange) is a standardized way of exchanging business data electronically between organizations. It is often used to facilitate transactions such as payments, invoicing, and orders.

One way that EDI is used for payments is by allowing organizations to send payment instructions and remittance information electronically, rather than through paper documents or manual data entry. This can help to streamline the payment process, reduce errors, and improve efficiency.

For example, a supplier may send an EDI invoice to a customer using an EDI format, such as an ANSI X12 810 Invoice. The customer can then process the invoice and generate a payment through their financial system using EDI. The payment can be sent to the supplier through EDI, along with any necessary remittance information, such as the payment amount and details of any deductions or adjustments.

EDI can also be used to automate the reconciliation of payments and invoices, as the payment and invoicing information is exchanged in a standardized format that can be easily processed by financial systems. This can help to reduce the time and effort required to reconcile payments and invoices, and can improve the accuracy of financial reporting.

Overall, the use of EDI for payments can help to improve the efficiency and accuracy of financial transactions between organizations

ACH

ACH is a network that facilitates the transfer of funds between financial institutions. ACH payments refer to the use of this network to process electronic payments, such as direct deposits, bill payments, and e-checks

An Automated Clearing House (ACH) is a payment system that processes electronic financial transactions in the United States. It is operated by the National Automated Clearing House Association (NACHA) and is used to facilitate the transfer of funds between banks and other financial institutions.

ACH transactions include direct deposit of payroll, Social Security, and pension payments, as well as electronic bill payments and other types of electronic payments. ACH transactions are typically faster and more secure than paper-based transactions, and they can be initiated by businesses, financial institutions, and individuals.

To initiate an ACH transaction, a sender provides the necessary information to their financial institution, including the recipient's name, bank account number, and routing number. The financial institution then sends the transaction to the ACH network, which processes the transaction and transfers the funds to the recipient's account.

ACH transactions are settled in batches, typically at the end of the business day. This means that the funds may not be available in the recipient's account until the next business day, depending on the timing of the transaction and the policies of the financial institutions involved.

EFT

EFT is a general term that refers to any electronic transfer of funds. This can include ACH payments, wire transfers, and other types of electronic payments

An electronic funds transfer (EFT) is a type of financial transaction that involves the transfer of funds from one bank account to another, typically through electronic means such as a computer or mobile device. EFTs can be used to transfer money between individuals or to make payments to businesses and organizations.

There are several types of EFTs, including:

  1. Automated Clearing House (ACH) transactions: ACH transactions are electronic payments that are processed through the National Automated Clearing House Association (NACHA). They include direct deposit of payroll, Social Security, and pension payments, as well as electronic bill payment and other types of electronic payments.
  2. Wire transfers: A wire transfer is a type of EFT that allows funds to be transferred between financial institutions in different locations. Wire transfers are typically used for large or time-sensitive transactions, as they are typically faster than ACH transactions.
  3. Electronic checks: An electronic check is a type of EFT that is initiated when a payer authorizes their financial institution to debit their account and transfer the funds to the payee's account. Electronic checks are often used for bill payment and other types of recurring payments.

 

Common EDI X12 Transactions Used in The Finance Industry

 

EDI X12 Transaction Number

EDI Transaction Name / Document Type

EDI 810

Invoice

EDI 820

Payment Order/Remittance Advice

EDI 850

Purchase Order

EDI 856

Advance Ship Notice / Manifest

EDI 857

Shipment and Billing Notice

EDI 135

Student Loan Application

EDI 139

Student Loan Guarantee Result

EDI 144

Student Loan Transfer and Status Verification

EDI 146

Request for Student Educational Record (Transcript)

EDI 147

Response to Request for Student Educational Record (Transcript)

EDI 188

Educational Course Inventory

EDI 189

Application for Admission to Educational Institutions

EDI 190

Student Enrollment Verification

EDI 191

Student Loan Pre-Claims and Claims

EDI 194

Grant or Assistance Application

 

Frequently Asked Questions

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How EDI is Used in the Finance Industry

How EDI is Used in the Finance Industry

EDI in Finance Industry

Introduction to EDI in Finance

In this new era of digitalization, the growth of international trade has created opportunities for trade between buyers and suppliers across the globe, resulting in the globalization of the financial supply chain. It involves many different processes to exchange information such as differences in currencies, accounting regulations, and other financial transactions/documents. Using EDI in the financial process mitigates this risk by automating the data exchange process in a standardized format, enabling the seamless, accurate, and timely exchange of financial data between buyers, sellers, and their financial institutions.

The most common EDI standard used in North America is EDI ANSI X12 transactions. There also other popular EDI standards are also used across the world such as UN/EDIFACT, SWIFT, and more

EDI in the finance industry helps businesses, financial institutes, and governments with the seamless transmission of financial information on a massive scale by automating the entire transaction cycle and reducing the dependency on the manual labor-intensive process.

How EDI is used by Finance Industry

These are the few steps taken by a company or institution to exchange payments or payment-related information.

Step 1 – The buyer electronically extracts payment information from the organization’s account payable system

Step 2 – The data is formatted into an EDI standard. Then, the transaction set is transmitted to the organization’s bank

Step 3 – The bank formats that information into the format necessary for its transmission through the Automated Clearing House (ACH) network as an ACH transaction.

Step 4 – The ACH network delivers the payment and its associated data to the seller’s bank, with the bank crediting the seller.

Step 5- It automatically transmits the payment information to the seller’s account receivable system, where the seller can see the funds have been posted.

How EDI helps Streamline the Processes in Financial Industry

The financial industry such as banks and private financial institutions offers various financial services to both individuals and businesses some of those services include personal loans, mortgages, day-to-day banking services, credit cards, insurance, and many more. All these different services involve the processing of complex information in a standardized format such as the processing of payable and receivables, supporting post-trade security flows, transmitting settlement files, or enabling group benefits eligibility claims.

For many years these processes were completed using manual methods which often delayed the overall operations. However, with the adoption of EDI technology, all these processes were standardized and automated making it possible to exchange information in minutes and increasing overall operational efficiency, reducing transaction costs, and accuracy, and increasing customer satisfaction.

Benefits of EDI in the Financial Industry

Payment automation – Automate payments to suppliers/vendors, payroll processing, accounts payable/ receivable, and more

Highly secure & reduce errors – Securely exchange financial information between banks, suppliers, and trading partners. Reduce errors caused by manual data entry

Improve cash flow – EDI helps you collect your payments faster and more efficiently thus improving overall cash flow

Reduce data processing cost – EDI reduces the turnaround time to process the data by processing them electronically in a standardized format and exchanging information in minutes thus reducing the costs of manual data processing

Common EDI X12 Transactions Used in Finance Industry

 

EDI X12 transactions are used for student information and student loans processing

 

EDI X12 Transaction Number

EDI Transaction Name / Document Type

EDI 130

Student Educational Record (Transcript)

EDI 131

Student Educational Record (Transcript) Acknowledgment

EDI 135

Student Loan Application

EDI 139

Student Loan Guarantee Result

EDI 144

Student Loan Transfer and Status Verification

EDI 146

Request for Student Educational Record (Transcript)

EDI 147

Response to Request for Student Educational Record (Transcript)

EDI 188

Educational Course Inventory

EDI 189

Application for Admission to Educational Institutions

EDI 190

Student Enrollment Verification

EDI 191

Student Loan Pre-Claims and Claims

EDI 194

Grant or Assistance Application

 

EDI X12 transactions used by Financial Institutions

 

EDI X12 Transaction Number

 EDI Transaction Name / Document Type

EDI 248

Account Assignment/Inquiry and Service/Status

EDI 810

Invoice

EDI 811

Consolidated Service Invoice/Statement

EDI 812

Credit/Debit Adjustment

EDI 818

Commission Sales Report

EDI 819

Operating Expense Statement

EDI 820

Payment Order/Remittance Advice

EDI 821

Financial Information Reporting

EDI 822

Account Analysis

EDI 823

Lockbox

EDI 824

Application Advice

EDI 827

Financial Return Notice

EDI 828

Debit Authorization

EDI 829

Payment Cancellation Request

EDI 831

Application Control Totals

EDI 859

Freight Invoice

EDI 980

Functional Group Totals

 

 

EDI X12 transactions used during mortgage processing

 

EDI X12 Transaction Number

 EDI Transaction Name / Document Type

EDI 197

Real Estate Title Evidence

EDI 198

Loan Verification Information

EDI 199

Real Estate Settlement Information

EDI 200

Mortgage Credit Report

EDI 201

Residential Loan Application

EDI 202

Secondary Mortgage Market Loan Delivery

EDI 203

Secondary Mortgage Market Investor Report

EDI 205

Mortgage Note

EDI 206

Real Estate Inspection

EDI 260

Application for Mortgage Insurance Benefits

EDI 261

Real Estate Information Request

EDI 262

Real Estate Information Report

EDI 263

Residential Mortgage Insurance Application Response

EDI 264

Mortgage Loan Default Status

EDI 265

Real Estate Title Insurance Services Order

EDI 266

Mortgage or Property Record Change Notification

EDI 833

Mortgage Credit Report Order

EDI 872

Residential Mortgage Insurance Application

 

EDI X12 transactions used by insurance companies and healthcare providers

 

EDI X12 Transaction Number

 EDI Transaction Name / Document Type

EDI 100

Insurance Plan Description

EDI 112

Property Damage Report

EDI 148

Report of Injury, Illness or Incident

EDI 186

Insurance Underwriting Requirements Reporting

EDI 252

Insurance Producer Administration

EDI 255

Underwriting Information Services

EDI 267

Individual Life, Annuity and Disability Application

EDI 268

Annuity Activity

EDI 270

Eligibility, Coverage or Benefit Inquiry

EDI 271

Eligibility, Coverage or Benefit Information

EDI 272

Property and Casualty Loss Notification

EDI 273

Insurance/Annuity Application Status

EDI 274

Health Care Provider Information

EDI 275

Patient Information

EDI 276

Health Care Claim Status Request

EDI 277

Health Care Claim Status Notification

EDI 278

Health Care Services Insurance/Benefit Review Information

EDI 288

Health Care Services Insurance/Benefit Review Information

EDI 362

Cargo Insurance Advice of Shipment

EDI 500

Medical Event Reporting

EDI 820

Premium Payments

EDI 834

Benefit Enrollment and Maintenance

EDI 835

Health Care Claim Payment/Advice

EDI 837

Health Care Claim

EDI 924

Loss or Damage Claim - Motor Vehicle

EDI 925

Claim Tracer

EDI 926

Claim Status Report and Tracer Reply

EDI 928

Automotive Inspection Detail

 

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Frequently Asked Questions

How EDI Helps Your Dropshipping Ecommerce Business

How EDI Helps Your Dropshipping Ecommerce Business

How EDI Helps Your Dropshipping Ecommerce Business

What is Dropshipping?

Dropshipping or DTC (Direct to consumer) is a fulfillment method where a retailer sells the product to its consumers via its online eCommerce store but does not keep the products in stock. Instead, the retailer sends the order information to its supplier and asks them to fulfill the order for its customer on their behalf.

Dropshipping has been around for over two decades now. However, it has gained more popularity in the last few years, mainly due to the Covid-19 pandemic, and consumers are switching to online to shop for products. Retail eCommerce is growing stronger year by year. In a recent survey by statista.com eCommerce revenue is projected to grow to $6.54 trillion US dollars, up from $3.53 trillion in 2019.

To keep up with this growing demand from consumers more and more retailers are reaching out to their suppliers, vendors, and 3PL providers to help them fulfill the eCommerce orders by automating the entire order-to-fulfillment cycle using EDI.

How Do EDI and Dropshipping Work Together?

How Do EDI and Dropshipping Work Together

Step 1 - It all starts when the consumer places the order via the retailer’s eCommerce store.

Step 2 - The retailer then sends the order information to the supplier via purchase order (EDI 850) which includes details like a list of products ordered, shipping addresses, order date, and more.

Step 3 - The supplier then acknowledges the order by sending EDI 855 and prepares the order with the retailers branded packing slip

Step 4 - The supplier ships the order with retailer branding to the customer and sends an ASN (advance ship notice) (EDI 856) with the shipment details including the tracking number to the retailer.

Step 5 - The supplier then sends EDI 810 invoice to the retailer for the fulfilled order

Step 6 - The retailer then sends EDI 820 (Payment order/remittance advice) to the supplier confirming the payment for the invoice

Step 7 - The customer receives the order

To keep the customer experience consistent, all customer-facing communications such us order confirmation and delivery updates are handled by the retailer.

As a Retailer How Can You Best Prepare for Your Dropshipping Business to Succeed?

The overall dropshipping fulfillment method looks easy. However, there are a few things that need to be achieved to scale your dropshipping business,

  1. Investing in a right EDI Technology
  2. Choosing the correct supplier partners and/or 3PL providers
  3. Setting up the right expectations
  4. Automating order fulfillment process
  5. Customer satisfaction

Investing in a right EDI technology

The first step for your dropshipping business to be successful is to invest in the right EDI solution which will help streamline the exchange of orders, inventory, and shipping details from end to end. It’s important that the EDI solution you choose should integrate with your internal business systems like ERP and CRM so all data can flow in and out of the system automatically without you having to enter the data manually. Highly recommend choosing Commport Communications as your managed EDI service provider as we offer all the right EDI solutions and tools in one single unified platform, that will help you succeed with your dropshipping business.

Choosing the correct supplier partners and/or 3PL providers

Choosing your supplier partners wisely is also an important step for a successful dropshipping business. There are already hundreds and thousands of suppliers, vendors, and retailers using dropshipping for over a decade. Partnering with such well-established partners can help your dropshipping business scale as they may put all the processes in place, and they may be easier to partner with. Commport can help you connect with the right partners for your business as we have existing connections with all major retailers and suppliers and our EDI solutions can easily integrate with them.

Setting up the right expectations

It’s important to keep the right expectations from your partners. This includes how fast orders can be fulfilled, inventory management, how to handle customer returns and order cancellations, and more. All this can be achieved by setting up service level agreements (SLAs) with your trading partners.

Automating the order fulfillment process

The faster the order is fulfilled the happier your customers will be. One best example is Amazon, it’s a big dropshipping eCommerce store where more than 80% of the order-to-fulfillment cycle is less than 2 to 3 business days, and this is achieved by streamlining the supply chain with automation. So, the right EDI solution can help you speed up your order-to-fulfillment cycle by automating the entire process and helping deliver your order fast to your customers.

The customer is the king for any business to be successful and the same applies to dropshipping as well. The retailer must handle all the communications with the customer from order processing, tracking, returns, cancellation, and refunds to keep consistent communication with customers and provide the best customer satisfaction to keep them happy and that’s what makes them come back to you again and again.

Commport EDI Solutions

Common EDI X12 Documents for Dropshipping

Each online retailer will have its own required EDI transactions, but the most exchanged EDI documents include:

  • (EDI 846) Inventory Inquiry/Advice
  • (EDI 850) Purchase Order
  • (EDI 855) Purchase Order Acknowledgement 
  • (EDI 856) Advance Shipment Notice
  • (EDI 860) Purchase Order Change Request - Buyer Initiated
  • (EDI 865) Purchase Order Change Request - Acknowledgement
  • (EDI 810) Invoice

Benefits of Using EDI for Your Dropshipping Business

 

No need to Keep Physical Inventory

Retailers don’t have to keep the inventory in their warehouse, instead, ask the supplier/vendor to ship the order directly to the customer. This will save thousands of dollars in inventory storage and management.

Scale Quickly

Retailers can fulfill orders fast while reducing the workload on distribution, labor costs, and inventory management. Retailers can set up the dropshipping business with very little investment

Improved Business Relationship

When done right dropshipping will help strengthen the relationship between the retailer and the supplier.

Introducing New Products is Easy

Retailers can easily launch new products online without them launching on the actual physical store or keeping the inventory for the same.

Affordable and Easy to Setup

Low startup costs and easy to setup

Automation and Customer Satisfaction

You can fully achieve automation when you integrate EDI with your dropshipping business from order processing, ship notices, invoices, and payments without ever worrying about manual data entry and increase customer satisfaction

Flexible Integrations

Businesses of all sizes use many different internal systems from ERP, CRMs, SAP, accounting software, and more. By choosing the right EDI solution you can integrate all that data into your business systems easily.

Conclusion

To be successful with your dropshipping business, you need to invest in the right EDI solution so that your EDI provider supports your internal business systems infrastructure and can easily integrate and automate the end-to-end data exchange such as order processing, inventory management, and shipping.  

Also, the EDI system should be able to handle large volumes of data that you receive from your suppliers/vendors.

The requirements for dropshipping are different from direct-to-store shipments. The organization of data, fulfillment process and timelines of EDI response documents are more stringent. Commport EDI experts can help you integrate the right EDI solution that will allow you to easily fulfill dropshipping orders. Commport EDI solutions will allow you easily add new trading partners/suppliers and improve your overall operational efficiency, business relationships, and customer satisfaction.

What type of Dropshipping EDI are you doing?

(No matter what you do. Commport got a solution to streamline it.)

Retail & eCommerce

Start dropshipping with your suppliers/vendors

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Suppliers, Vendors & Distributors

You are tasked up to do direct to consumer fulfillment

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3PL Logistics Providers

Partnering with Retailer/Suppliers to ship orders directly to consumer

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Frequently Asked Questions

How EDI is used in the Retail Industry

How EDI is used in the Retail Industry

How EDI is Used in the Retail Industry

Introduction to EDI in the retail industry

For over 40+ years the retail industry has been using EDI to replace its paper-based system and started exchanging documents like purchase orders, invoices, and ship notices with their suppliers/business partners using EDI. Retail businesses usually exchange high volumes of order data and EDI solutions can help in exchanging this large volume of data in a standardized format to improve operational efficiency and reduce the turnaround time to process orders. It also helps them to keep track of inventory management and provide more visibility into the supply chain and provide better customer support.

The retail industry uses EDI in 3 stages,

  1. Procurement
  2. Shipping
  3. Invoicing
Procurement

1. Procurement

Procurement is the method of purchasing goods or services, typically for business purposes. During the procurement process, the retail industry uses EDI to exchange purchase orders (EDI 850) and purchase order acknowledgments (EDI 855). The buyer/retailer sends a purchase order to the supplier and the supplier then sends the purchase order acknowledgment back to the buyer/retailer.

Shipping

2. Shipping

Logistics/shipping plays a big part in the retail supply chain. In this stage, the supplier sends the advance ship notice (EDI 856) to the buyer/retailer. The advance ship notice (ASN) provides the buyer with information like what is being sent in each package when it’ll be sent, by whom, and more. ASN plays a very important role can help retailers relieve stock congestion and reduce check-in times.

“According to the research from the Grocery Manufacturers of America, ASNs slash receiving times by up to 60% if just one part of deliveries uses automated ASNs, a 250-store company can save 65,000 receiving hours each year.”

The ASN can ensure that every step of the supply chain is fully informed of the status of the goods.

Invoice

3. Invoicing

In the final stage, the supplier issues an EDI invoice (EDI 810) to request payments for products delivered. EDI 810 document consists of invoice details like invoice number, date, shipping details, payment terms, and item information like information including prices and quantities, discounts, and more. To this, the retailer will respond back with EDI remittance advice (EDI 820) and sends it to the supplier to confirm payment

Benefits of EDI in the Retail Industry

 

  1. Reduce transaction times

In contrast to the manual paper-based system, EDI messages can be exchanged in seconds, which leads to faster invoice processing and improved cash flows. By using EDI solutions buyers/retailers can receive EDI invoices directly into their accounting software so they can process them quickly and efficiently.  

  1. Reduce costly errors, avoid delays, and saves costs

Manual processing is prone to Invoicing errors and can be costly leading to charge backs from retailers. Also, errors in documents can cause delays in shipments and goods receivable disrupting the supply chain. However, by using an effective EDI solution you can reduce all these costly errors, improve operational efficiency, and save thousands of dollars.

  1. Expand your fulfillment Models

Support eCommerce growth and create a seamless consumer experience across channels using standardized EDI transactions.

  1. Simply order management and improve warehouse efficiency

Get EDI order information from suppliers and gain visibility into whether suppliers can fulfill orders in full and on time. By receiving automated ASNs from suppliers you can move your inventory efficiently through your supply chain and plan better warehouse management, which in turn improves warehouse operational efficiency.

  1. Automation

With EDI you can automate your entire supply chain cycle. From procurement, shipping, and order management. On boarding your suppliers to EDI will enable a consistent order fulfillment process.

  1. Improve supplier efficiency

EDI can help retailers gain visibility into order management which means which suppliers are delivering orders on time, correctly, and quickly and which are not. With this type of data, retailers can make changes if certain suppliers just aren’t cutting it. This type of insight would take months to discover without an EDI system.

  1. Effective product management and bust trends

Gain visibility into product performance. EDI can help retailers help identify trending products i.e., which products are selling like hotcakes, and which are not. This will help retailers adjust inventory supplies accordingly.

  1. Increase sales with drop shipping

Drop shipping is a process of providing goods directly from manufacturers to retailers or customers. If a retailer provides an option to its customers to order products online via its eCommerce store, instead of storing the inventory in the retailer warehouse, with the help of EDI it can send the same order information to its supplier and ask the supplier to fulfill the order directly to its customer from their warehouse. In this way, retailers can save time and save storage space by not storing the inventory and processing orders faster for its customers. All this can happen with an effective EDI system.

Common EDI X12 Transaction Codes Used in Retail Industry

 

EDI X12 Transaction Number

EDI Transaction Name / Document Type

  

EDI 180

Return Merchandise Authorization and Notification

 Read More

EDI 290

Cooperative Advertising Agreements

Read More

EDI 810

Invoice

 Read More

EDI 816

Organizational Relationships

 Read More

EDI 832

Price/Sales Catalog

 Read More

EDI 846

Inventory Inquiry/Advice

 Read More

EDI 850

Purchase Order

 Read More

EDI 855

Purchase Order Acknowledgment

 Read More

EDI 856

Ship Notice/Manifest

 Read More

EDI 857

Shipment and Billing Notice

 Read More

EDI 860

Purchase Order Change Request - Buyer Initiated

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EDI 865

Purchase Order Change Acknowledgement/Request – Seller Initiated

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EDI 869

Order Status Inquiry

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EDI 870

Order Status Report

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EDI 875

Grocery Product Purchase Order

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EDI 876

Grocery Products Purchase Order Change

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EDI 877

Manufacturer Coupon Family Code Structure

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EDI 880

Grocery Products Invoice

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EDI 881

Manufacturer Coupon Redemption Detail

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EDI 885

Retail Account Characteristics

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EDI 887

Coupon Notification

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EDI 888

Item Maintenance

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What is EDI Integration?

March 8, 2023

What is EDI Integration? EDI integration means setting up a full EDI workflow between trading partners to exchange business documents. This includes establishing endpoints, protocols, and EDI document transactions that you exchange with your trading partner and also translating those documents into a format that can be used by your internal order management, ERP, or accounting systems. … Continue reading “What is EDI Integration?”

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The Role of EDI in eCommerce and Online Retail

February 28, 2023

The Role of EDI in eCommerce and Online Retail EDI in eCommerce facilitates business document exchange such as purchase orders, invoices, and shipping notices between trading partners and customers in a standardized format. Introduction Define eCommerce E-commerce stands for electronic commerce. It makes buying and selling products or services easy by using the internet. It … Continue reading “The Role of EDI in eCommerce and Online Retail”

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10 Ways EDI Can Improve Supply Chain Efficiency

January 26, 2023

10 Ways EDI Can Improve Your Supply Chain Efficiency Before we get started on how to optimize and improve supply chain efficiency, it is important to define and know what is supply chain management and its importance in the end-to-end delivery of final products to customers. What is supply chain management? Supply chain management is … Continue reading “10 Ways EDI Can Improve Supply Chain Efficiency”

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How EDI is Used in the Food & Beverage Industry

January 12, 2023

How EDI is Used in the Food & Beverage Industry The supply chain in the food and beverage industry involves the movement of raw materials, ingredients, and finished products from producers to manufacturers, distributors, and ultimately, to consumers. The supply chain can be complex, involving multiple stakeholders and processes, including sourcing, production, storage, transportation, and … Continue reading “How EDI is Used in the Food & Beverage Industry”

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What are EDI Payments?

December 22, 2022

What are EDI Payments? EDI payment process involves the exchange of electronic documents and the automation of financial transactions, allowing businesses to streamline and automate their financial processes. Introduction to EDI Payments EDI payments refer to the use of EDI to facilitate the exchange of payment information between two parties. This can include information such … Continue reading “What are EDI Payments?”

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How EDI is Used in the Finance Industry

November 28, 2022

How EDI is Used in the Finance Industry Introduction to EDI in Finance In this new era of digitalization, the growth of international trade has created opportunities for trade between buyers and suppliers across the globe, resulting in the globalization of the financial supply chain. It involves many different processes to exchange information such as … Continue reading “How EDI is Used in the Finance Industry”

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How EDI Helps Your Dropshipping Ecommerce Business

November 18, 2022

How EDI Helps Your Dropshipping Ecommerce Business What is Dropshipping? Dropshipping or DTC (Direct to consumer) is a fulfillment method where a retailer sells the product to its consumers via its online eCommerce store but does not keep the products in stock. Instead, the retailer sends the order information to its supplier and asks them … Continue reading “How EDI Helps Your Dropshipping Ecommerce Business”

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How EDI Helps 3PL Providers (Third-Party Logistics Companies)

November 10, 2022

How EDI Helps 3PL Providers (Third-Party Logistics Companies) What is 3PL A 3PL provider is a third-party logistics company serving as links in outsourced distribution and fulfillment stages of the supply chain. 3PL companies provide full-scale logistics services such as transportation, warehousing, customs clearance, and other logistics-related activities. Basically, 3PL helps outsource a part of … Continue reading “How EDI Helps 3PL Providers (Third-Party Logistics Companies)”

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How EDI is used in the Retail Industry

November 3, 2022

How EDI is used in the Retail Industry Introduction to EDI in the retail industry For over 40+ years the retail industry has been using EDI to replace its paper-based system and started exchanging documents like purchase orders, invoices, and ship notices with their suppliers/business partners using EDI. Retail businesses usually exchange high volumes of … Continue reading “How EDI is used in the Retail Industry”

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GDSN 101: Everything You Need to Know About GDSN

October 27, 2022

GDSN 101: Everything You Need to Know About GDSN Define GDSN Global Data Synchronization Network established in 2004, is a GDSN distributed system of independent, interoperable data pools all connected to the GS1 Global Registry ® The. GDSN enables retailers and suppliers to have accurate, real-time supply chain data. GDSN Terminology GS1 global registry Interoperability … Continue reading “GDSN 101: Everything You Need to Know About GDSN”

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What is UN/EDIFACT Standard and Messages

What is UN/EDIFACT Standard and Messages?

UN/EDIFACT (United Nations/Electronic Data Interchange for Administration, Commerce, and Transport is the international standard that was developed by the United Nations). Comprise a set of internationally agreed standards, directo­ries, and guidelines for the electronic interchange of structured data, between independent computerized information systems. The work of maintenance and further development of this standard is done through the United Nations Center for Trade Facilitation and Electronic Business (UN/CEFACT) under the UN Economic Commission for Europe.

EDIFACT has served as the default international EDI standard for several decades and is largely used throughout Europe.

EDIFACT Message Structure

An EDIFACT message represents a single business document. – For example, an ORDRSP file represents a Purchase Order note. Each message has a six-letter identifier that shows the short name of the message.

Any document in the UN / EDIFACT standard has a hierarchical structure. The entire electronic document is called a message. A message consists of data groups combined in some way, for example, a data group describing customs payments, a group of data describing the attributes of documents, etc. In turn, the group consists of typical data segments that describe document attributes in more detail. The standard provides about 200 different types of segments from which messages are composed. The segments themselves also have a hierarchical structure and consist of data elements that can be simple (data field) and composite (usually 2-3 data fields).

The following is the structure of an EDIFACT transmission:

  • Service String Advice
  • Interchange Header
  • Functional Group Header
  • Message Header
  • User Data Segments
  • Message Trailer
  • Functional Group Trailer
  • Interchange Trailer

See below for an example of an EDIFACT message used to answer a flight ticket (FRA-JFK-MIA) availability request:

UNA:+.? '

UNB+IATB:1+6XPPC:ZZ+LHPPC:ZZ+940101:0950+1'

UNH+1+PAORES:93:1:IA'

MSG+1:45'

IFT+3+XYZCOMPANY AVAILABILITY'

ERC+A7V:1:AMD'

IFT+3+NO MORE FLIGHTS'

ODI'

TVL+240493:1000::1220+FRA+JFK+DL+400+C'

PDI++C:3+Y::3+F::1'

APD+74C:0:::6++++++6X'

TVL+240493:1740::2030+JFK+MIA+DL+081+C'

PDI++C:4'

APD+EM2:0:1630::6+++++++DA'

UNT+13+1'

UNZ+1+1'

Benefits of UN/EDIFACT

UN/EDIFACT allows real-time electronic transactions and accelerates the interactions between trading partners.

3 main benefits of UN/EDIFACT standards are,

  1. Accuracy – Eliminates human errors that are inevitable when manually entering the data
  2. Improve Cashflow – Reducing paper-based processing will in turn reduce your business administrative costs and save thousands of dollars for business
  3. Efficiency – Large volumes of data can be transferred within minutes thus improving overall operational efficiency

 

Conclusion

The UN/EDIFACT standard provides a set of syntax rules to structure, an interactive exchange protocol, and provides a set of standard messages which allow multi-country and multi-industry exchange of electronic business documents. EDIFACT is widely used across Europe, mainly since many companies adopted it very early on. EDIFACT has seen some adoption in the ASPAC region, however, there are currently more XML-based standards being used in this region today.

Full list of UN/EDIFACT document standard messages is provided below,

 

Application Reference Message Type
APERAK Application error and acknowledgement message
AUTHOR Authorization message
AVLREQ Availability request – interactive message
AVLRSP Availability response – interactive message
BALANC Balance message
BANSTA Banking status message
BAPLIE Bayplan/stowage plan occupied and empty locations message
BAPLTE Bayplan/stowage plan total numbers message
BERMAN Berth management message
BMISRM Bulk marine inspection summary report message
BOPBNK Bank transactions and portfolio transactions report message
BOPCUS Balance of payment customer transaction report message
BOPDIR Direct balance of payment declaration message
BOPINF Balance of payment information from customer message
BUSCRD Business credit report message
CALINF Vessel call information message
CASINT Request for legal administration action in civil proceedings message
CASRES Legal administration response in civil proceedings message
CHACCO Chart of accounts message
CLASET Classification information set message
CNTCND Contractual conditions message
COACSU Commercial account summary message
COARRI Container discharge/loading report message
CODECO Container gate-in/gate-out report message
CODENO Permit expiration/clearance ready notice message
COEDOR Container stock report message
COHAOR Container special handling order message
COLREQ Request for a documentary collection message
COMDIS Commercial dispute message
CONAPW Advice on pending works message
CONDPV Direct payment valuation message
CONDRA Drawing administration message
CONDRO Drawing organization message
CONEST Establishment of contract message
CONITT Invitation to tender message
CONPVA Payment valuation message
CONQVA Quantity valuation message
CONRPW Response of pending works message
CONTEN Tender message
CONWQD Work item quantity determination message
COPARN Container announcement message
COPAYM Contributions for payment
COPINO Container pre-notification message
COPRAR Container discharge/loading order message
COREOR Container release order message
COSTCO Container stuffing/stripping confirmation message
COSTOR Container stuffing/stripping order message
CREADV Credit advice message
CREEXT Extended credit advice message
CREMUL Multiple credit advice message
CUSCAR Customs cargo report message
CUSDEC Customs declaration message
CUSEXP Customs express consignment declaration message
CUSPED Periodic customs declaration message
CUSREP Customs conveyance report message
CUSRES Customs response message
DEBADV Debit advice message
DEBMUL Multiple debit advice message
DEBREC Debts recovery message
DELFOR Delivery schedule message
DELJIT Delivery just in time message
DESADV Dispatch advice message
DESTIM Equipment damage and repair estimate message
DGRECA Dangerous goods recapitulation message
DIRDEB Direct debit message
DIRDEF Directory definition message
DMRDEF Data maintenance request definition message
DMSTAT Data maintenance status report/query message
DOCADV Documentary credit advice message
DOCAMA Advice of an amendment of a documentary credit message
DOCAMI Documentary credit amendment information message
DOCAMR Request for an amendment of a documentary credit message
DOCAPP Documentary credit application message
DOCARE Response to an amendment of a documentary credit message
DOCINF Documentary credit issuance information message
ENTREC Accounting entries message
FINCAN Financial cancellation message
FINPAY Multiple interbank funds transfer message
FINSTA Financial statement of an account message
GENRAL General purpose message
GESMES Generic statistical message
HANMOV Cargo/goods handling and movement message
ICASRP Insurance claim assessment and reporting message
ICSOLI Insurance claim solicitor’s instruction message
IFCSUM Forwarding and consolidation summary message
IFTCCA Forwarding and transport shipment charge calculation message
IFTDGN Dangerous goods notification message
IFTFCC International transport freight costs and other charges message
IFTIAG Dangerous cargo list message
IFTICL Cargo insurance claims message
IFTMAN Arrival notice message
IFTMBC Booking confirmation message
IFTMBF Firm booking message
IFTMBP Provisional booking message
IFTMCA Consignment advice message
IFTMCS Instruction contract status message
IFTMFR International Forwarding And Transport
IFTMIN Instruction message
IFTRIN Forwarding and transport rate information message
IFTSAI Forwarding and transport schedule and availability information me
IFTSTA International multimodal status report message
IFTSTQ International multimodal status request message
IHCEBI Interactive health insurance eligibility and benefits inquiry and
IHCLME Health care claim or encounter request and response – interactive
IMPDEF EDI implementation guide definition message
INFCON Infrastructure condition message
INFENT Enterprise accounting information message
INSDES Instruction to dispatch message
INSPRE Insurance premium message
INSREQ Inspection request message
INSRPT Inspection report message
INTCHG Interchange Control Structures
INVOIC Invoice message
INVRPT Inventory report message
IPPOAD Insurance policy administration message
IPPOMO Motor insurance policy message
ISENDS Intermediary system enablement or disablement message
ITRRPT In transit report detail message
JAPRES Job application result message
JINFDE Job information demand message
JOBAPP Job application proposal message
JOBCON Job order confirmation message
JOBMOD Job order modification message
JOBOFF Job order message
JUPREQ Justified payment request message
LEDGER Ledger message
LREACT Life reinsurance activity message
LRECLM Life reinsurance claims message
MEDPID Person identification message
MEDPRE Medical prescription message
MEDREQ Medical service request message
MEDRPT Medical service report message
MEDRUC Medical resource usage and cost message
MEQPOS Means of transport and equipment position message
MOVINS Stowage instruction message
MSCONS Metered services consumption report message
ORDCHG Purchase order change request message
ORDERS Purchase order message
ORDRSP Purchase order response message
OSTENQ Order status enquiry message
OSTRPT Order status report message
PARTIN Party information message
PASREQ Travel tourism and leisure product application status request – i
PASRSP Travel tourism and leisure product application status response –
PAXLST Passenger list message
PAYDUC Payroll deductions advice message
PAYEXT Extended payment order message
PAYMUL Multiple payment order message
PAYORD Payment order message
PRICAT Price/sales catalogue message
PRIHIS Pricing history message
PROCST Project cost reporting message
PRODAT Product data message
PRODEX Product exchange reconciliation message
PROINQ Product inquiry message
PROSRV Product service message
PROTAP Project tasks planning message
PRPAID Insurance premium payment message
QALITY Quality data message
QUOTES Quote message
RDRMES Raw data reporting message
REBORD Reinsurance bordereau message
RECADV Receiving advice message
RECALC Reinsurance calculation message
RECECO Credit risk cover message
RECLAM Reinsurance claims message
RECORD Reinsurance core data message
REGENT Registration of enterprise message
RELIST Reinsured objects list message
REMADV Remittance advice message
REPREM Reinsurance premium message
REQDOC Request for document message
REQOTE Request for quote message
RESETT Reinsurance settlement message
RESMSG Reservation message
RESREQ Reservation request – interactive message
RESRSP Reservation response – interactive message
RETACC Reinsurance technical account message
RETANN Announcement for returns message
RETINS Instruction for returns message
RPCALL Repair call message
SAFHAZ Safety and hazard data message
SANCRT International movement of goods governmental regulatory message
SKDREQ Schedule request – interactive message
SKDUPD Schedule update – interactive message
SLSFCT Sales forecast message
SLSRPT Sales data report message
SOCADE Social administration message
SSIMOD Modification of identity details message
SSRECH Worker’s insurance history message
SSREGW Notification of registration of a worker message
STATAC Statement of account message
STLRPT Settlement transaction reporting message
SUPCOT Superannuation contributions advice message
SUPMAN Superannuation maintenance message
SUPRES Supplier response message
TANSTA Tank status report message
TAXCON Tax control message
TIQREQ Travel tourism and leisure information inquiry request – interactive
TIQRSP Travel tourism and leisure information inquiry response – interactive
TPFREP Terminal performance message
TSDUPD Timetable static data update – interactive message
TUPREQ Travel, tourism and leisure data update request – interactive message
TUPRSP Travel, tourism and leisure data update response – interactive message
UTILMD Utilities master data message
UTILTS Utilities time series message
VATDEC Value added tax message
VESDEP Vessel departure message
WASDIS Waste disposal information message
WKGRDC Work grant decision message
WKGRRE Work grant request message

 

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What is EDI Translation?

What is EDI Translation?

What is EDI Translation? - Commport Communications

Define EDI Translation

EDI translation means converting data from enterprise-specific and irregular formats into standardized and organized structures that are compliant with EDI standards.

Why EDI Translation is Important?

In 2022, it’s important for businesses to maintain those crucial business relationships with their trading/business partners, and adopting an integrated EDI platform will help thrive your business ecosystem.

Most business and ERP systems don’t inherently read or create business documents using international EDI data standards such as ANSI X12 and UN/EDIFACT. As a result, there is some sort of translation or transformation needed to convert documents to and from business systems for use.

Without an EDI translation system in place, it would be extremely difficult to exchange business documents with a wide range of companies. Especially if you want to exchange data with businesses in different industries and different countries.

So, it’s important for businesses to invest in an EDI translation software/service provider that allows customers to create business documents from an in-house system and have them converted to an EDI standard format that meets trading partner requirements. The document in EDI format is then sent using the Commport VAN and communicated to the business partner who will then convert the EDI standard document into the format which meets their internal system requirements for processing.

How does EDI translation Works?

Based on the above diagram here are the exact steps Commport follows to translate and transmit your EDI documents,

Step 1 Buyer sends their business document (e.g.: Purchase order) to the Supplier, via the Commport VAN to Commport’s translation service.

Step 2  Commport translation service translates the received document (purchase order) to the supplier’s preferred format and delivers the converted document to the receiver’s mailbox.

Step 3 Supplier generates the invoice and sends the document to Commport’s Hosted EDI translation cloud for conversion to the Buyer’s invoice requirements

Step 4 Commport translates the invoice from the supplier into the buyer’s preferred document format and sends the translated document to the buyer’s order management system via the Commport VAN and the buyer’s preferred communication method.

Step by Step Process: How to Collect Raw Data and Translate it Into an EDI Standard Document?

  1. Document preparation

First, collect and organize the data to be sent, this could be downloading data from your ERP systems, Databases, or spreadsheets in an electronic form.

  1. Translation of documents into EDI standard

The next step is to input the electronic data into the EDI translation software which will convert it into the standard formats using the appropriate data and segmentation elements.

The EDI translation software outputs a data structure either in a native programming language, like the C# POCO in EDI Tools for .NET, or in XML/JSON. Some EDI translators produce records in a predefined database structure. Regardless of the exact shape of the output, the goal is to convert the cryptic contents of an EDI file to a structure that:

  1. Is convenient to be manipulated programmatically
  2. Conforms to the rules of the EDI standard

EDI Translation is bi-directional, e.g., it should also be able to take as input either a programming language instance, as the C# POCO in EDI Tools for .NET, or others such as XML/JSON/database records, and generate EDI files that adhere to the EDI standard.

Businesses may use an EDI VAN provider like Commport Communications for their translation requirements. In this case, the businesses just need to send the data to the EDI provider who will then handles all the translation processes and communications with your trading/business partners.

  1. Connecting and transmitting EDI documents to business partners

Once the document is translated into the appropriate formats, it can be transmitted to business partners via various communications methods such as using,

  1. Integrated EDI
  2. EDI via AS2
  3. EDI via sFTP
  4. EDI via FTP
  5. EDI VAN
  6. Cloud EDI
  7. EDI Outsourcing

Benefits of Using Commport’s Hosted EDI Translation Service

Security – In today’s digital world it is highly important that all data transferred between businesses is done securely. Built on the foundation of Commport's Tier 1 Value Added Network, Commport’s EDI translation service leverages a modern security framework to protect data integrity while ensuring compliance with trading partner EDI requirements.

Speed – For a business to grow fast, automation and scalability are very important. By increasing the speed that business can be conducted, organizations can achieve greater productivity as they grow. Commport’s EDI translation service, built directly into the Commport VAN, can help reduce the processing time by eliminating data entry, integrating business transactions, and automating document exchange between partners.

Low Costs – Manually processing documents can create errors that can potentially result in chargebacks. Integrating documents right into business systems eliminate this risk while also reducing the effort associated with processing the document.

Simplicity – Many trading partners understand that it’s important to transfer accurate and timely information between them to improve business operations and cash flow. By leveraging a translation service, businesses can focus on their core competency, and their business, and leave the technical requirements to the experts.

Commport EDI integration experts can manage all the EDI and B2B integration processes for you, with the flexibility and scale that you truly need. Regardless of how you move your EDI files, Commport will always make sure that you have full access to all your data in real-time, including web-based dashboards, transaction reports, and automated alerts.

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