Posted by: Greg Swallow, HighJump TrueCommerce
An Order Management Solution (OMS) automates inventory and order processing so you can fulfill orders faster and easier, get a handle on inventory levels and leverage better data to make smarter decisions. It’s all about enabling efficiency, productivity and insight to drive business growth.
What could be better than that? How about more of that! More efficiency, productivity and insight is exactly what you’ll get when you take advantage of the synergy between your OMS and electronic data interchange (EDI) software.
You’ve probably heard of EDI because many of the retailers, suppliers and 3PL providers in your supply chain ecosystem are already using it—or looking to use it—to get data moving faster. EDI is the common “language” that enables everyone to track goods and data, from start to finish, quickly and elegantly. Being part of the conversation saves you time and money and makes you easier to do business with.
Here’s an example of how using an OMS with EDI can accelerate order processing and cut transaction costs: when you receive a non-EDI invoice from a vendor, you need to pay someone to manually print it out, key the order data into your OMS, and look through the data line-by-line to check it and flag any exceptions, such as a price change.
With EDI, all that extra labor cost and potential for errors and delays disappears. It’s all processed and reconciled automatically within the OMS. This is why supply chain giants like Amazon all integrate EDI with their financial systems and mandate that their suppliers use EDI—because it lets them ship next-day (or even same-day) and also saves on procurement costs.
What business benefits do you get from using EDI alongside your OMS?
- Faster time-to-market. Automated order processing is not only much faster, but also offers better visibility into inventory. When you know what your vendors have available you can work with them to eliminate distribution bottlenecks and ship faster.
- Higher margins. Obviously automation saves on labor costs. It also improves accuracy of information, which means fewer costly and reputation-damaging problems with orders. You won’t get a crate of rubber ducks because someone mistyped a SKU number.
- Better analytics. When you’re tracking (and monetizing) supply chain data you can begin to see and proactively work with “trigger” events, from weather to cycles in supporting industries, that impact your sales volume.
- Faster turnaround time on payments. Because EDI data is electronically available across your systems, as well as those of your vendors and customers that use EDI, payment can happen much faster.
- Competitive differentiation. Data accuracy and timeliness are critical to success in retail. EDI/OMS integration helps give you end-to-end visibility across your supply chain. When you can see what the customer’s experience looks like, you can set the bar for service where Amazon sets it.
- Peace of mind. With EDI you get a one-stop vendor relationship with full visibility end-to-end across your solution. That eliminates finger-pointing and accelerates resolution of issues.
View our on demand webinar, by our preferred EDI provider, HighJump TrueCommerce EDI, entitled Incorporating EDI into Your Business to learn more.