When you supply traditional stores and large e-market stores, EDI is an organizational and vital supply chain process implied by store chains. Almost everyone will expect your company to utilize it and, by doing so, they will expect it to conform to their compliance norms. If your organization falls short of the mark, here are seven tips for enhancing your EDI.
EDI is important to the global supply chain, and it looks like it will remain that way for quite a while. It is used by small and large retailers and their suppliers are expected to use it as the trading partner application — basic etiquette.
Well then, if EDI is something you cannot eliminate, then how do you minimize the time you spend on it? Do you just go through the process you employ at the moment, while you can actually aim at changing it? Do you know all the possibilities to introduce EDI into the system that supports your enterprise? Do you view EDI as a part of your system to manage your data as opposed to a problem that you must deal with?
This essentially means that instead of considering it as a difficult task that has to be accomplished in line with the principles of EDI, organizations and relevant departments should view it as a chance. EDI done well becomes a strategic weapon and denotes that you are a credible supplier and not your competitors. Moreover, if your EDI process is less costly and time consuming, then you are getting something as extra which can be help you in expanding your business.
Less errors, better handling of data, and higher level of integration, that is
how you can revolutionize the EDI at your company. Selecting the right
full-service provider is an essential aspect of this process, but how you can
get better at EDI efficiency will help you when making a decision.
Here are six ways to make positive changes to your
organization’s EDI process.
1) Implement EDI into the system that is
at the heart of your operations.
Do not think of EDI as an isolated process disconnected from your business, integrate it with the system that drives it. That can be an ERP such as NetSuite or SAP, Accounting software like QuickBooks or your WMS. If you currently work with a 3PL provider or a contracted logistics company, you can also gain efficiency from your integration with them as well.
Not only will you save time and learn from your mistakes which are common when systems are not well-interlinked, but you will also be in a position to manage the business with relative ease. More data, work with data faster and adapt to the changes with actual speed.
2) EDI should be integrated with most of the shipping service providers.
Being in possession of orders is the primary thing which supports the functioning of your business. Which getting them shipped promptly and at the least cost possible is paramount.
Instead of using copy and paste tool to enter data from the order, integration with shipping providers enables you. With Lingo, order information can be transferred easily to FedEx, UPS, USPS, Stamps. com, Endicia, and others. You will gain enhanced speed in the EDI process and avoid hefty errors that are ordinarily fatal to partner relations as well as the customer end.
3) Automate more tasks.
This is especially true when it comes to manual entry, which will logically comprise much of EDI if it were not for automation. Not to mention lots of mistake.
Facts are that many high touch processes such as copy and paste are error-prone. To recall, humans are just that – human – and even the most conscientious, and careful employee will fail when performing monotonous tasks.
It was also noted that whereas often it is thought that when things are automated then there are no errors, this is not correct. EDI, when done manually is a process that may take a lot of time and is always very tiresome. Also, when firms automate, they can proceed with the mass production of orders at the same time. Instead of shifting each order at a time they can record hundreds or number of thousands in minutes through typing alone.
Besides, all that speed not only saves the time that you can devote to your core competence, but can also help to speed up the order-to-cash cycle. What does this mean? This means that with quicker processing of the orders, quicker payments should also follow suit.
4) And definitely do it to ASN at least.
Even if you’re not sure how much automation you’re prepared to introduce to your EDI process, at least take this step: automate the ASN (EDI 856) process.
Why? To begin with the ASN is probably the most frequently used document by all trading partners. The ASN will convey certain specifics of the shipment that the trading partner will be receiving including the time and mode of transport as well as the content of the shipment. When conducted manually, it might be one of the most time-consuming documents — automating the process means saving hours.
The ASN has been made to integrate with GS1–128 labels, and the retailer gets to understand exactly what has been packed into each carton by merely scanning a barcode. It will match to the ASN and when the retailer scans it, they will be able to see particulars about the content of the carton, for instance the product, color, size, weight and the number.
A strong EDI platform will provide you with the ability to decide whether to actually automate the ASN. For example, using Lingo we are able to generate and/or send ASNs on their own. This is achieved through presets that are input in the account during the creation of an account, however one can modify them later.
One, there is the automation of the creation of the ASN in which a specific tag specified in the trading partner setup is attached to the order upon its receipt. That tag starts the automation process all over again. The ASN will be created and the labels, Bill of Lading document and Packing Slips will be sent to the required recipient/s by email.
It can be automated even further by having the ASNs sent automatically, according to rules that set the tag that will trigger the auto-send and the time or times of the document’s dispatch. It is easier to let Lingo perform this than going into the system and sending every ASN in a single batch.
It is also worth linking the ASN and the Invoice and this link can be created in the System Settings in Lingo. Once this has been done, then the Invoice will be generated from the ASN when the document is transmitted by the system. This way brands and suppliers can be assured that the Invoice matched the ASN in every detail. That translates into faster reconciliation, and a stronger business relationship because the there is confidence in the accuracy of the information.
Now, with the help of platforms, such as Lingo, one can be sure that EDI documents are sent on time and all the necessary routing information is interchanged.
5) Pack consistently.
Use of repeatable approaches in packing has the potential of enhancing your EDI process. Instead of having staff apply a new method every time an order has to be shipped, the development of presets will be quicker and more effective in meeting store trading requirements.
You will also have to take time and ensure that you are packing your items in the most efficient manner and within the acceptable standards by most of the retailers. If one undertakes a high volume of shipping imagine the total time that would be saved in a year if at each instance product are shipped each time a few total seconds are gained. 24 hours, 7 days, weeks, months, a year — I think you catch my drift. Supply chain extends the entire process right up to consumption and you want all the time spent to be as productive and time-bound as possible.
If you want to know more about packing efficiently? We offer over 15 custom packing solutions so, there are options that will fit your needs and your business.
6) Validate. Then validate again.
Even resolving EDI increased speed is beneficial to it, the total sum of advantages gained those enhancements will be nullified by new mistakes that result in chargebacks and strayed orders.
Validation check is used to avoid sending a document with some information missing or incomplete. Double-checking will refer to the situation whereby forms will be checked for omission of some data more than once. Reducing the number of errors also helps cut on the time of communication, does not require charge backs, and improves on the trading partner relations hence making the EDI to be efficient.
7) Don’t work up the chain of command.
It assumes to address the workflow of your organization – the flow that may be one-of-a-kind. In other words, optimising your EDI process involve beginning by reviewing just how the business currently handles supply chain. Attempting to make alteration that does not corresponds to anything present already in your system will just introduce challenges: people will not accept it, errors will be made, and people will get frustrated.
At HubBroker ApS we always prefer working on a client-by-client basis, instead of having a one-size-fits-all approach. When we deal with customers, there is a Discovery phase in which we identify key characteristics of your order processing. From there, we are able to set the right service levels and set the right workflow that will be effective and accepted by the people who will be using lingo.
Capitalise on EDI.
The efficiency and effectiveness of the EDI can be a determinant to the success of an organization. So, as the company increases in size, the problem increases in significance — errors are more expensive, poor performance more apparent. Therefore, by following these seven steps on how to enhance your EDI process, it is possible to turn what many consider as a complicated and slow process into one of your most powerful assets. Your own company’s operation will be more efficient, and your trading partners will be assured of increasing their business with you.
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