Written by Act Data Services, Inc. 1-800-ACT-DATA
Companies implement EDI for one of two reasons. Either they want to go ahead with their own implementation in order to improve operational inefficiencies or it is in order to meet EDI compliance for one of their trading partners. Those companies that have implemented systems will see a lot of advantages to extending the internet EDI implementation to their warehouse management system. Here are the advantages of doing so:
The primary advantage is to reduce inventory costs by understanding what is available in your supply chain. This way you only order and store what you need. There are also systems which allow you to order on demand when your levels reach specific levels or to order inventory as soon as new orders arrive.
Reduced labor costs
Companies that use advanced shipping notices can save labor costs by up to 40 percent of labor costs associated with inbound processing. This is because all parts of shipping notice and confirmation documentation will be done automatically. The barcode will only need to be scanned on arrival.
Minimized freight costs.
Linking the system to the transportation management system will also help reduce freight costs across the board when shipments and orders from multiple suppliers can be consolidated.
Improved customer service
Critical business information from all parts of the chain will be available for review and will result in improved customer care. This enhanced visibility will also improve customer satisfaction.
Act Data is an EDI provider for retail and supplier environments.