Logistics is an inseparable part of the supply chain. Without transportation, none of the industries can move their goods across continents; hence it’s a driving force for the world economy. As it involves enormous transactions across the industry, much of the information is shared between supply chain stakeholders through piles of paper each day. Would it not be better to have information in a better format that can be saved for a longer time which is worthier than the paper.
How can it be done?
For an error-free transaction, providing access to all the information related to logistics through automation is the best way of doing it. The exchange of data via automation offers benefits not only to in-house logistics and 3PL service providers in India but also to the entire supply with all information at their fingertips. This is where EDI comes into the picture which is a medium through which integration of business systems is completed to facilitate EDI document or data exchange.
What is EDI?
EDI (Electronic Data Interchange) is a computer-to-computer exchange of business information and documents in a standard electronic format between business partners. These documents can be anything from shipping notes, invoices, purchase orders, delivery notes, etc. EDI helps in eliminating human errors, cutting costs, reduce manual processes while communicating efficiently to the respective parties. All the data can be sent via mailbox allowing the other trade partner to download or view the document. As the EDI documents are processed electronically, a standard format is used for the computer to read and understand the transferred documents.
EDI for the logistics industry
EDI in supply chain management is used to orchestrate the transfer of a wide array of documents like BOL, customs documents, shipping status documents, routing instructions, invoices, and many more. With EDI, transactions are easily streamlined and organized and it also helps in auto-generating and sending invoices, and dispatch information without any data being manually keyed in.
Benefits of EDI in the logistics Industry
Immediate exchange of documents: All the information can be exchanged immediately in real-time between the stakeholders.
Avoid human intervention: No human intervention means the information that has been exchanged has more accuracy and ensures faster confirmation.
Cost and Time Savings: Replacing the paper-driven process that involved higher costs and extra efforts and time of stakeholders with an EDI solution encouraged savings in time and money. EDI embraces paperless transactions that are an eco-friendly solution as it reduces waste.
Transactions between parties are more rapid: with EDI, the communications have become faster, hence the sales cycles are shortened, orders are taken more quickly and customers achieve confidence as the ability of the company increases to deliver on time with superior service.
Moving business ahead: Saving time and effort helps in boosting sales and real-time information offers accuracy in all transactions. With EDI implementation, the business gains good profit.
With EDI and its capabilities, it’s obvious that businesses can have global connectivity and a broader network for the logistics industry and as more and more companies start adopting this technology, it will lead to a growing supply chain that will be unstoppable.