Posts Tagged ‘electronic data interchange’

6 Bottom-Line Benefits of Incorporating EDI Into Your Multi Channel Retail Business

Friday, October 17th, 2014

Posted by:  Greg Swallow, HighJump TrueCommerce

EDIAn 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?

  1.  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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.

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Posted in Ecommerce, Freestyle Commerce, Industry News, Inventory & Order Management, Multichannel Order Manager, Order Management, Webinar | No Comments »

End-to-End EDI: The Key to Running an Efficient Business

Friday, February 28th, 2014

Posted by: Rebecca Kaelin, Marketing Coordinator, Logicbroker

It’s an indisputable fact that eCommerce has changed the way we do business  – just ask any eTailer. While each eTailer strives to be more efficient and keep up with customer demand, more effective means of communication became necessary. That’s where Electronic Data Interchange (EDI) comes in.

EDI involves the transfer of data between organizations through electronic means, replacing postal mail, fax, and email. Though email is an electronic approach, documents exchanged via email still require someone to open, read, and translate the message, which can slow down processing and open the door to errors.  Due to its speed and considerable cost savings, EDI has become the medium of choice to transmit electronic documents and business information. Typical documents exchanged via EDI include purchase orders, invoices, and advance shipment notices (ASNs).

So what can EDI do for you? Well, eTailers that elect to implement end-to-end EDI allow their businesses to perform more efficiently. Without manual touches, errors are eliminated from the order fulfillment process, saving you time and money. Tracking information can be brought over, ensuring it is always accurate, which eliminates costly shipping errors. When there are no errors, no time will need to be allocated to correct them. With manual EDI, if you were importing/exporting information multiple times a day, it would be easy to duplicate or miss orders, which would alter the authenticity of your books. If numbers were off, time would be lost painstakingly going over orders to find out where the error was. Fortunately, end-to-end EDI ensures this scenario never happens.

EDI has been praised for its efficiency and automation capabilities, but only an end-to-end EDI solution can guarantee manual touches will be eliminated from your order fulfillment process. Many retailers and suppliers will implement EDI, yet still have to log into multiple portals to verify and complete orders. If you are spending just one hour a day manually processing orders, in a typical work year that will add up to 250 hours, which is simplified to 31 work days. With an end-to-end EDI solution, you get that month back. Your end-to-end EDI provider maps to your trading partner’s EDI so documents flow effortlessly between the systems and the need for you to log into portals is eliminated.

Your EDI solution can also act as an integration hub by connecting your backend systems. With an EDI integration hub, the powerful systems your business depends on can communicate seamlessly. EDI messages will be received and translated and deposited automatically into the appropriate system. Purchase/sales orders will flow from your shopping cart or trading partner directly into your order management software, and pricing and inventory updates can be brought up from your OMS into your shopping cart. Your EDI provider can also automatically trigger the sending of PO Acks (purchase order acknowledgements), ASNs (advance shipment notices), and invoices. With these backend efficiencies, your staff will not be tied up with manually fulfilling order information. If your backend is running inefficiently, customers will be turned away because of inaccurate stock and poor ratings. But, with a powerful backend that runs efficiently and reliably, your main focus can be developing your front end and growing your business.

In today’s eCommerce ecosystem, EDI is becoming a mandate. EDI opens the door to more business opportunities because of the efficiencies it creates, such as processing orders faster and eliminating manual tasks. By implementing an end-to-end EDI solution, you are optimizing your business in a way that regular EDI cannot. Check out this blog for more information on implementing end-to-end EDI..

Access a special on demand webinar, Tools to Connect Your Online Store and Back Office, created by Dydacomp and Logicbroker to learn how Logicbroker’s deep integration with Dydacomp’s M.O.M. (Multichannel Order Management System) fully automates the EDI order process.

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Posted in Customer Satisfaction, Ecommerce, Freestyle Commerce, Industry News, Inventory & Order Management, Multichannel Order Manager, Shipping | No Comments »