SmartEDI Challenges Small Companies Face to Overcome the Supply Chain Hurdles

Challenges Small Companies Face to Overcome the Supply Chain Hurdles

Small companies operate a tight ship due to various limitations. Their budget, workforce, cash flows, and client base are some of the constraints to consider. Also, they struggle with taxation policies, government regulations, and compliance rules. Moreover, their profits and productivity depend on the quality of the supply chain.

Unfortunately, small company managers encounter many problems here. Procurements get plagued by miscommunication and unnecessary delays. Every trading partner does not give too many pricing breaks to suit small companies, and any little inefficiency in product delivery and shipping models will cause significant backlog and loss. 

Thankfully, computer and internet technologies are all prevalent in the world. By investing in automation and digitization, some hurdles can become smaller. The supply chain workflows can become streamlined and electronic data interchange (EDI) can create efficiency. But the problems also become more diverse and challenging for the supply chain managers.

Main obstacles

Manual processes

Data entry and retrieval using manual methods are inefficient and slow. It is challenging to generate error-free reports, invoices, and purchase orders. Also, the paperwork has to get organized, managed, and archived using tedious procedures. An increase in manual labor and complexity to do all this work would be tremendous and redundant.

In contrast, computerization and mobile access are accurate and fast. The manager can retrieve pertinent data in real-time. By adopting new technology and automation (RPA), data storage, processing, and management also become simplified. And cloud connectivity, mobile data collection, and voice-controlled solutions offer superior strategies.

IT security

Supply chain processes require regular network access for data. The integrity, accuracy, safety, and security of data come into question. The best supply chain solution with security leaks is a significant liability and a costly lawsuit. Hackers target weaker networks and ransom a heavy price after stealing essential data.

Automated solutions with due diligence for preventive security is essential. Cybersecurity has to be a priority, and encrypted methods are becoming basic standards. The best security software assures the manager’s peace of mind and productive efficiency. 

It is not just about the security of your infrastructure. The data security of every partner in your supply chain is essential. Data leakage can occur at any point in the supply chain if you do not have trade partners who take data security as seriously as you do. It is better to break off a relationship with such weak trade partners. If their IT infrastructure is not fool-proof, then you, too, will become vulnerable. The other challenge here is the budget to incorporate those changes.

Third-party logistics

Some companies have the infrastructure, resources, and expertise in storing and shipping products. Partnering with them is not as straightforward as it looks. Third-party logistics can quickly turn into a nightmare even for proficient managers. But the advantages are one too many to ignore, so many businesses go ahead.

You can save storage space, reduce costs, lower risk, and save time. You can also improve the productivity of supply chain workflows. But do not rush into signing a contract with any 3rd party partner. Look into their credentials and proceed after doing a thorough cost-benefit analysis.

There are too many third-party logistics services providers in the market. Yes, they manage the warehousing, inventory, and fulfillment processes. For small companies, this may seem like a great relief. But such outsourcing brings challenges related to contracts, tools, data security, management, and automation.

Cost efficiency

Supply chain operating costs grow with new technologies. They also rise because of fuel, energy, and HR expenses. But cutting down costs is not an easy hurdle to cross for the management. Small companies have to introduce innovation without creating workforce resentment.

They can rely on mobile data collection tools to lower inventory mistakes. It will help improve the company’s sales in the long run. Tools like product trackers, barcode scanners, and digital forms are vital for controlling costs. Cost efficiency also is possible with cutting unwanted resources, automation, outsourcing, and so on.

HR and teamwork

Reducing HR costs is always high on the agenda of a small company. But supply chain processes are not only crucial but also complicated. Besides, the data-intensive workflows have to be accurate, prompt, and reliable. Such an activity requires teamwork and efficient duty delegation.

Supply chain managers can get vexed by the dynamic environment. Real-time events are unpredictable, and experts are essential. Scalability becomes a nightmare in many cases. Every company aspires to change its capacity to adapt to the seasonal change in demand. But finding experienced candidates and recruiting them can be an expensive affair. Besides, they have to be on-boarded and acquainted with the office culture.

Building a reliable team takes time, and managers have to be patient. They should factor in business needs, inter-departmental conflicts, training costs, etc. Ultimately, hiring the right person for the right job is essential to ensure productivity and profits. 

Conclusion

To sum up, small businesses have to do a fine, balancing act. They have to manage the supply chain for qualitative and cost improvements. At the same time, they have to deliver customer satisfaction and lower the risk of doing business in a competitive environment.

Otherwise, the company not only loses customers but also trading partners. With technological infusion, efficiency improved a great deal. But the threats are also equally alive, and overcoming these hurdles is paramount.

SmartEDI, can be your partner to easily onboard the customers to kick start the EDI transactions in a smarter way. Our solution is easy to install and run efficiently irrespective of any infrastructure challenges while being highly portable, flexible and scalable. An assured increase of 80% to 90% is observed in on-boarding new partners. The time and money invested are drastically brought down to 10% to 20% for existing solutions. Check out the link to know more.

SmartEDI Strategy

Understanding When and Where to Implement an EDI Logistics Strategy

With globalization, the export and import of goods and services have grown tremendously. To cater to the demands of the global market smoothly, the requirement for a well-structured and sophisticated communication and supply chain channel is required. To answer this need, we have the EDI logistics strategy.

To improve the overall efficiency channel, and increase the visibility; a well-structured logistics channel is a must. The EDI logistics strategy must take a comprehensive plan that involves supply chain and communication.

Right from the stock management, shipping service, invoice creation, bill payments, and logistics tracking, every task has become so quick with the advent of the logistics EDI. Especially in case of the overseas business involving export and import, the EDI logistics has the crucial role to play as the manager of logistics operations.

With being time savvy and budget-friendly, the EDI logistics strategy has proved to be effective in reducing the business’s environmental footprints.

Benefits of EDI Logistics Strategy

With a bundle of benefits and ease of communication, EDI has become an integral part of the business world. The industry standard and B2B transactions, the reaping benefits of technology that the EDI offers, many large-scale suppliers are already using the EDI logistics strategy.

The benefits of the application of the EDI Logistics strategy for the businesses are jotted down for you.

Automation

With the automation of the messaging processes related to generation, sharing, and recording of electronic data related to shipment and dispatch, without any human intervention, the logistics EDI is a boon.

Better and Quick Management

With the business catching up high, the need for error-free processing is a must. The data with the help of the digital generation and sending of commercial messages, the communication related to logistics management is at best.

Traceability

With the traceability of the product dispatched throughout the transit period, the person in charge can easily monitor and track the movement of the product. With the ease of validating the information, the trust factor between the supplier and distributor is managed too.

Standardization

With the standardization of the message and the exchange of information through the electronic mode, a standardized message to share with the receivers can be formatted. Without any language barrier and a predefined format, communication has eased a lot.

Supply Channel

Maintaining the stock is a tedious task. And to keep track of the order by the distributor, the EDI logistics strategy can control a lot. When the product is perishable, the EDI strategy can ensure that the product reaches its destination well on time, and no damage occurs.

Real Time Integration

With real-time integration with all the modes of transport, the chances of delay in services diminish. It henceforth streamlines and provides secure administrative procedures. It reduces lapses in services and better coordination between the business partners.

Need of EDI Logistics Strategy

In any business, the need for updating and advancement as per the trends and pace is a must. Still, some will contradict the fact stating that what is the actual requirement of the EDI logistics strategy?

The basic answer to this question is to streamline the process and to ensure seamless working. Apart from these, various other factors come to limelight as the need for EDI logistics.

With the bulk of need that the EDI logistics fulfill for its users, the major ones can be categorized as below:

  • Better and complete synchronization between manufacturer and distributor.
  • Well-managed and flourished channel of communication between various stakeholders of the business like manufacturer, distributor, transport, storage, customs, and others.
  • Perfect end-to-end supply chain coordination.
  • Transparency and traceability of the merchandise in transit
  • Real-time information about the status of the product, especially beneficial for perishable goods.
  • Ease of on-boarding new logistics partners or distributors based on the existing framework.
  • Common codes used by the EDI logistics software that enables better understandability.
  • The standardized format of invoicing, receipts, and messaging to ensure synchronization and sophistication in business.

Conclusion

With the global connectivity capabilities and the scope of reach to every nook and corner of the world, EDI logistics has proved that a business has no boundaries. With limitless area and unlimited exposure, a business can enter the market of any location with the ease of logistics.

To enter the export or import segment, safe and efficient communication between the origin and final destination of the product is a must in addition to the pricing. With the effective relationship built by the EDI technology between the various actors of the business world, the administration is simple.

The dream of a more sophisticated and controlled business backed by real-time traceability and transparency, quick delivery, and communication, is now possible. The EDI logistics strategy with standardized code and framework to suit business organization is ready to change the face of the business world most unimaginably.

As a solution to all the above questions of implementation, CloudGen’s SmartEDI’s Automated Trading partner agreement enables our customers to roll-out their EDI projects quickly and efficiently by reducing the time invested in manual setup & mapping. Also, our Automated EDI On-boarding process helps the customers to increase their focus on overall business development of organization.

EDI Everywhere

How fortune 500 corporations widely use EDI

With the footprints traced to decades back, Electronic Data Interchange is one of the swiftest and simplest modes of data transfer. The ease of communicating online and sharing the details with the various stakeholders in real-time, EDI has proven to be one of the tools to benefit all the business sizes.

With years of successful implementation in large Fortune 500 organizations with measurable returns on investment, EDI has a proven track record of positive impact even when the revenues hit the low trail.

The efficiency of data integration increased turnover, and reduced cost, the paradigm shift of business on profits due to the EDI implementation has been a prime point of success. With the dramatic cost-saving and better benefits linked to modest operations, the EDI is extensively applied by the Fortune 500 companies.

Benefits and Use of EDI

The benefits that the EDI offers are unmatched with any of the other business implementation strategies. Developed to solve a multitude of problems, the EDI is now widely used by various organizations. By facilitating automation and smooth functioning, EDI has multiple benefits to offer to the companies.

The use of EDI is related to environmentally sustainable practices in several ways. The reduced chances of the errors and quick processing of the request, has ensured retailer compliance and better product distribution. The great time to reduce the throughput of processes and reduce the potential errors, EDI is very supportive of the fortune 500 companies.

The benefits that these companies have extracted from the application of EDI are:

Quick Transaction processing

With reduced paperwork and digitization, the speed by which the transactions are processed, and communication is established is enhanced to a great extent. With quick and easy retrieval of files, allowing faster turnaround times, and higher customer satisfaction, EDI is used by Fortune 500 companies.

Reduced errors

Manual data entry is slow with the chances of a high clerical error. With the implementation of the automated data entry and all the system related to data processing in the digital mode, the possibility of human error decreases.

Attaining Accessibility

With the real-time processing and the access of data round the clock, the tracking is stratified a lot. With such an implementation of EDI, the company can get the benefit of staying at the top of the competition. The streamlined servicing and standardized processes, businesses can manage accounts and inventory more accurately.

Enhanced Efficiency

The paradigm shift that has been seen in the wide usage of the EDI by fortune 500 companies is in the area of productivity. With increased efficiency, the business can directly impact customer relationships and add value to the company.

High Security

The businesses are best when they assure the high security of data stored and transmitted. With the EDI integration, the data is secured end-to-end without any leakage. EDI makes it easier to track and store data for auditing purposes to meet industry compliance standards.

Companies using EDI

The decades of implementation ample number of industries are already using EDI in their day-to-day operations. With the extensive usage of the EDI, the businesses are getting benefited from various advantages. The top sectors in the Fortune 500 companies that have widely implemented the EDI are:

Pharmaceutical Industry

Relying on the extreme level of accuracy, the pharmaceutical industry needs the highest level of data security and accuracy. With EDI integration, the channel of communication is streamlined a lot. The electronic process has significantly reduced errors and turnaround time.

Retail Industry

The customer being the centre of the business of the retail industry, the need to reduce the overhead costs by reducing errors, turnaround times, and labour costs is a must to ensure the best pricing. With the implementation of EDI, the companies in this segment have assured the best services at a premium cost.

Automotive Industry

The weekly analysis of stock required to ensure no shortage in the manufacturing process by improving communication with material suppliers, and eliminating the need for invoices is the key area of improvement that has been focused by the EDI.

Financial Industry

With a wide area of financial transaction and operations which are customer-driven and the need for accurate data, the EDI integration in the financial companies is magical. With the swift and quick communication that takes place between banks and customers or between banks, EDI ensures no data leakage and high security of the companies.

Tech Industry

Allowing quick and hassle-free communication is the key to the success of various tech companies. The use of EDI is the prime factor that the tech industry has favoured to handle numerous business processes right from design to manufacturing and supply management.

Conclusion

With global connectivity and extensive implementation, the Fortune 500 companies have benefited a lot from the EDI. Electronic data interchange is a hassle-free and quick way to stay connected in the business world.

A tool that is seen as the game-changer for a decade, has proved to be effective, efficient, and smart in various aspects and sectors. Working with the industry specialist, EDI can help to identify potential improvements and earn a big fortune by the analysis of the same. Thus, implementing EDI is one of the core competencies of the Fortune 500 companies and various small enterprises in today’s scenario.

Elucidating How to Maintain Data Consistency, Accessibility and Retainability while using High Available (HA) Openshift clusters

October 7th, 2020

How are stateful workloads handled ?

How are distributed pods able to access the data all time ?

How is accessible data made consistent ?

And at times of failure , How is data retained ?

These are some of the questions that intrigues most of us while running our application on an High Available (HA) Openshift cluster .Let us find the answers

Firstly the pod workloads are handled by distributing it across the cluster to make the application highly available, it can be done by:

Using replica sets and Anti-Affinity rules

nfs1

  • Replica sets gives us the pod count, increased number of pods would ensure that specified number of pods are available in an healthy state at any point of time.
  • Pod workload is handled by scheduling these pods on different computable nodes of the cluster and also making sure that no two similar app pods are on same node
  • For this purpose, combination of nodeAffinity and podAntiAffinity rules are set so that the application pods are distributed evenly.

Secondly, data consistency, accessibility and retainability is achieved by provisioning NFS storage that uses persistent volumes.

  • Here, NFS acts as persistent file storage device and we can make this storage instance available to cluster using static provisioning which requires creation of persistent volumes manually
  • Hence, NFS acts as persistent file storage device and creation of NFS directory acts as a shared volume

2

Below is the procedure for setting up :

1. Creating NFS-server EC2 Instance

  • Launch an Amazon Linux 2 AMI EC2 Instance (supports centos, rhel and fedora)
  • Configure Instance details with Openshift cluster VPC , associate related public subnet in the same zone , proceed with default settings.
  • configure security groups , allow NFS port 2049 .
  • proceed for launching the instance .
  • Now access the AWS terminal through putty and proceed for NFS- server installation

2. Installing the NFS-server

  • Install these packages on the CentOS server with yum
  • yum install nfs-utils

  • Create the directory that will be shared by NFS:
  • mkdir /var/nfsshare

  • Change the permissions of the folder as follows:
  • chmod -R 755 /var/nfsshare
    chown nfsnobody:nfsnobody /var/nfsshare

  • Start the services and enable them to be started at boot time:
  • systemctl enable rpcbind
    systemctl enable nfs-server
    systemctl enable nfs-lock
    systemctl enable nfs-idmap
    systemctl start rpcbind
    systemctl start nfs-server
    systemctl start nfs-lock
    systemctl start nfs-idmap

  • Share the NFS directory over the network as follows:
  • vim /etc/exports
    /var/nfsshare 192.168.100.2 (rw,sync,no_root_squash,no_all_squash) ##192.168.100.2 is the NFS client IP
    ## Validate with below command
    showmount -e 192.168.100.1 ## gives exports list.

  • Finally , start the NFS service
  • systemctl restart nfs-server

This completes setting up of NFS-server

3. At NFS-Client End

  • Connect to worker nodes of openshift cluster which are NFS-Clients .
  • ## NFS Client installation inside worker nodes
    yum install nfs-utils # need to install for non-coreOS

  • create the NFS directory mount points:
  • mkdir -p /mnt/nfs/var/nfsshare

  • we will mount the /var/nfsshare directory:
  • mount -t nfs 192.168.100.1 :/var/nfsshare /mnt/nfs/var/nfsshare/ #192.168.100.1 is the NFS-server IP

  • check if its mounted correctly :
  • df -h

4. Deploying Storage Class

  • Below is the sample storage class used , one can edit storage class name and the provisioner name accordingly.
  • #vim class.yml
    apiVersion: storage.k8s.io/v1
    kind: StorageClass
    metadata:
    name: nfs-storage
    annotations:
    storageclass.kubernetes.io/is-default-class: "false"
    provisioner: example.com/nfs
    parameters:
    . archiveOnDelete: "false"

  • Once updated the class.yml file we can execute the file using oc create
  • # create storage class file
    oc create -f class.yml
    #check if storage class got created
    oc get storageclass

5. Creating Persistent Volume (PV)and Persistent Volume Claims (PVC)

  • PV contains file storage details like NFS server IP and NFS shared path, thus it gets pointed to file storage device , that is to the NFS server. /b
    • Using a reclaim policy of “retain”, a persistent volume will not be deleted or erased. Hence the relationship between pod and storage can be re-established

    ## create pv
    kind: PersistentVolume
    apiVersion: v1
    metadata:
    name: pv-nfs
    spec:
    capacity:
    storage: 1Gi
    accessModes:
    - ReadWriteMany
    persistentVolumeReclaimPolicy: Retain
    storageClassName: nfs-storage
    nfs:
    server: 192.168.100.1 ## nfs server IP
    path: /var/nfsshare ## nfs server shared path
    ## creat pvc
    kind: PersistentVolumeClaim
    apiVersion: v1
    metadata:
    name: pvc-nfs
    namespace: < project name >
    spec:
    accessModes:
    - ReadWriteMany
    resources:
    requests:
    storage: 20Mi
    volumeName: pv-nfs ## should be same as pv name
    storageClassName: nfs-storage

    ## to create above scripts
    oc create -f pv.yml
    oc create -f pvc.yml

6. Creating Pods to use Persistent Volume Claims

  • Pods utilize this shared volume using persistent volume claim(PVC)
  • apiVersion: apps/v1
    kind: Deployment
    metadata:
    name: deploy-nfs
    labels:
    app: deploy-nfs
    spec:
    replicas: 2
    selector:
    matchLabels:
    app: deploy-nfs
    template:
    metadata:
    labels:
    app: deploy-nfs
    spec:
    containers:
    - name: deploy-nfs1
    image: busybox
    command:
    - sleep
    - "3600"
    resources:
    requests:
    cpu: "0.01"
    volumeMounts:
    - name: pv-nfs
    mountPath: /mydata
    affinity:
    nodeAffinity:
    requiredDuringSchedulingIgnoredDuringExecution:
    nodeSelectorTerms:
    - matchExpressions:
    - key: kubernetes.io/hostname
    operator: In
    values:
    - < worker1 hostname >
    - < worker2 hostname >
    - < worker3 hostname >
    podAntiAffinity:
    requiredDuringSchedulingIgnoredDuringExecution:
    - labelSelector:
    matchExpressions:
    - key: app
    operator: In
    values:
    - deploy-nfs
    topologyKey: "kubernetes.io/hostname"
    volumes:
    - name: pv-nfs
    persistentVolumeClaim:
    claimName: pvc-nfs

    # create the pod using deployment.yml file
    oc create -f deployment.yml
    # check for pods status
    oc get pods -n < project name >

7. NFS Validation

  1. NFS-Server end, create a sample file and check if getting replicated to nfs client and in pod as well.
  2. NFS-Clients end, create a sample file and check if getting replicated to nfs server and in pod as well.
  3. At Pod level, create a file in the container mount path i.e /mydata , it would get reflected in NFS-server and in NFS-client machines.

Takeaways

we can now make our data persistent , accessible and retainable through NFS by means of static provisioning that requires manual creation of persistent volumes.

Whats ahead ?

Can we claim the persistent volume without actually creating it ?

Yes , without actually creating a persistent volume we can allocate storage volume just by creating persistent volume claim , this reduces time in bringing up the application.

In next post we will see how a dynamically provisioned NFS storage is set up .

WRITTEN BY

Saicharan Adavelli

DevOps Engineer| hands-on with Cloud Platform Infrastructure-AWS| Redhat Openshift Certified

Traditionalizing the Modern Approach  How EDI is Shape Shifting Your Legacy Systems

Traditionalizing the Modern Approach

How EDI is Shape Shifting Your Legacy Systems

Communication and data transfers are no longer elective activities for a business in both B2B and B2C models. And Electronic Data Interchange (EDI) plays a significant role in establishing viable communications. Organizations that stay up-to-date in this regard achieve greater success.

EDI has been around for a while, and it helps in the standardization of the data transfer process. But the long-standing technology is currently under scrutiny. It is because organizations have become much more complex, and their enterprise-level requirements are growing on a global scale.

Yes, legacy EDI systems still exist, but they can pose new challenges. Modernization of EDI protocols and processes is the only solution. This process of modernization of legacy systems is particularly essential if one of the business partners is still stuck with older technologies. Emerging solutions are the order of the day to improve their profits.

Future-oriented Solutions

Workflow Unification

Diverse legacy EDI systems become fragmented and unwieldy. For example, Value-added networks (VAN) get disjointed and require multiple tools. Otherwise, it is not possible to ensure file transfer and mapping or back-end integration. Such systems can also stretch the wits of the trouble-shooters.

Workflows get slowdown as different tools are essential to process orders. Communicating with trade partners and system upgrades also become challenging. But modernizing EDI improves end-to-end workflows. It also enhances supply chain visibility and facilitates faster upgrades and system repairs.

User-Friendliness

Legacy systems can challenge the HR resources of any company. The staff has to undergo training for diverse tools usage. It makes the process of building teams, and expertise takes time and cost money too. Not all employees will be on board and thrilled by the prospects of reading lengthy manuals, either.

Modern EDI systems have convenient UI/UX and friendly drag-and-drop features. They eliminate coding needs and provide a single, seamless front-end for quick mastery. The visual interfaces appeal to the users, and they even show a willingness to do remote work.

Faster Productivity 

Asynchronous file transfer and batch processing were the banes of older EDI systems. These processes were slow, and scheduling demands stressed out the managers. But now, cloud computing and mobile phone access is a reality. 

Data collection, storage, and back-end processing are faster. They happen in real-time, and syncing features resolve data redundancies and replication issues. Cost control becomes efficient and overall productivity and profits of the organization increase.

Innovative Edge  

In the future, companies that adapt to modernity will thrive. They will have an innovative edge over their competitors on a global scale. Technologies and tools have also become more reliable and refined. Web interfaces, robust APIs, mobile data collection, and superior security are assuring.

Data decentralization through Blockchain technology enhances transparency. The modern EDI tools are faster, convenient, and more reliable. 

Superior Security

Older IT systems and legacy EDI tools have multiple security flaws. They are vulnerable and require constant upgrades and updates. This requirement increases maintenance costs and disrupts the workflows. But modern EDI VANs ensure data security, compliance, and optimized supply chains. They reduce the risks of data storage and file transfer and address privacy issues also.

Complementing APIs 

Modern EDI solutions are not in conflict with APIs. The developers are endorsing their simultaneous usage. Legacy system problems like rigidity and inflexibility can get dealt with API-first architectures. Cutting-edge interfaces like JSON, REST, and OData create feature-rich apps. Besides, customized, code-free APIs enhance workflow integration, data access, and publication. Developers can provide secure, real-time access, even to legacy databases, Excel sheets, etc.

Scalability 

Integration with legacy EDI requires considerable investment. The specialists have to set-up expensive servers, cloud interfaces, web, and mobile apps. Modern solutions reduce such complexity through container technologies. The project managers can design scalable solutions in advance, and even implement them quickly and accurately with superior software development tools.

Collaboration Support 

Legacy desktop applications rely on version control systems and package repositories. It facilitated data maintenance and collaboration to a limited extent, but modern EDI solutions create an eco-system using APIs, web, and mobile interfaces. So, collaboration becomes more rapid and reliable.

Flexibility

Traditional IT infrastructure gets limited by platform dependencies. It extends from hardware to operating system requirements. Thankfully, modern EDI deployment and integration are platforms- agnostic. You can set up the system on UNIX and Windows, or run it as a cloud-based application. 

This flexibility accelerates end-to-end workflows without compromising security and privacy. Moreover, the modern system is not only interoperable but also easy to maintain and upgrade. It also addresses the organization’s business needs without a breakdown in supply chain processes.

Conclusion

To conclude, modern businesses operate in a dynamic environment. They are under pressure to compete and resolve complex problems very quickly. Mere automation of business processes and data communications is not sufficient anymore.

Modernizing EDI is not easy for business partners in e-commerce. They have to deal with legacy systems and spend on new technology. Also, integration with existing IT infrastructure is challenging. But the emerging solutions are too enticing, and safety in familiarity is not an option anymore.  

CloudGen’s SmartEDI is one such solution, which can be a perfect fit into any of the B2B transactions. Easy setup and implementation with accelerated onboarding process is our promise to the struggling new companies, to head out successfully in taking off the EDI systems. Contact us for a live demo, which helps you to understand more.

blog 1 advantages

The Advantages of EDI in Logistics and Supply Chain

Orders, invoices, catalogues, instructions, sales reports, quotations, and more – the list of documents required in logistics management is endless. Logistics and supply chain is heavily reliant on documents for transactions and communications. But this increased paperwork translates to the increased expenditure of time, money, and resources. And don’t forget the risk of errors.

Electronic data exchange (EDI) is a computer-to-computer exchange of business documents, which allows you to eliminate cumbersome paperwork, reduce costs, and improve efficiency.

In this article, you’ll learn about the key benefits of EDI in logistics and supply chain.

Let’s jump right in.

Cost Savings

First things first, EDI helps you save costs. As discussed, logistics management comprises copious amounts of paperwork, including printing, storage, reproduction, postage, and retrieval. All this can add significantly to the overall logistics expenses. Utilizing an EDI system enables you to lower your transaction costs by 35-45%.

Besides, manual administration of documents is susceptible to illegible faxes, incorrectly taken orders, or lost orders, which can add up to the losses. EDI eliminates human involvement, thereby alleviating the risk of losses.

Lastly, manual documentation can eat up your valuable resources. For instance, you’ll need to have an employee present to handle the tasks, along with machinery, to print, send, and receive paper documents. EDI automates the entire process and allows you to make better utilization of your resources.

Improved Speed and Accuracy

Electronic data interchange can accelerate your supply chain procedures by up to 60%. For example, it can speed up exchange transactions to a few minutes, instead of waiting for days in case of postal service. Apart from speed, EDI also enhances data quality by delivering a minimum of 30-40% reduction in transaction errors. It excludes mistakes emerging from illegible handwriting, keying/re-keying errors, or lost mail/faxes.

Using EDI can also help you reduce the order-to-cash cycle time by 20-30%, thus, improving business partner relationships and transactions. In addition, using EDI enables you to handle a significantly larger task load with better accuracy.

Improved Business Efficiency

EDI automates paper-based tasks, which allows you and your staff to focus on more productive, higher-value activities. Besides, it helps you and your transport management provider to spend more time on hand-getting shipments where they need to go, instead of spending hours juggling through paper documents and email communications.

Another benefit of EDI in supply chain management is the quick and accurate processing of business documents, which results in fewer stock-outs, cancelled orders, and re-working of orders. It ensures you’re able to send business-critical data on time and track it in real-time.

EDI further allows you to improve cash flow and reduce order-to-cash cycles, along with shortening order processing and delivery times to reduce your inventory levels.

Streamlined Communication Between Partners

Communication plays a key role in the success of logistics operations. However, paper-based documentation impedes communication between trading partners. In addition to streamlining transactions, EDI also advances all types of trading partner interactions.

This results in improved partner-customer relationships and more sales. For example, EDI allows you to shorten your sales cycle. So, you can take and confirm orders more rapidly, giving your customers confidence in your ability to deliver remarkable service.

Peak Inventory Management

Maintaining optimal inventory levels is one of the hurdles most logistics managers face. Not having the right inventory levels means you won’t be able to meet your customer demands, which will lead to losses and a degraded reputation.

EDI helps you maintain ideal inventory stock levels for the future. It provides you access to real-time updates and latest market trends, which you can use to streamline proper resource allocation and manage shortage or excess inventory levels.

Promotes Strategic Planning

One of the major hurdles logistics companies and managers encounter is the lack of transparency and visibility into the status of transportation transactions. EDI resolves this challenge by offering real-time visibility into transportation transactions, which, in turn, promotes faster decision-making and enhanced responsiveness to changing market demands and customer preferences.

EDI also conduces to strategic business planning in the following ways:

  • Cuts down the lead times for product improvements and new product delivery
  • Enhances corporate social responsibility and sustainability by replacing paper-based procedures with electronic methods. This helps you save money and carbon dioxide emissions.
  • Enables you to enter new markets and territories by providing a common business language for facilitating business partners across the globe.

Conclusion

We live in the era of digitization, where businesses need to evolve and amp-up their operations. Electronic data exchange allows you to gain more information on your fingertips in the quickest possible time. You can trace orders and see their status in real-time.

EDI also helps you manage your inventory levels and enables you to keep up with the fluctuating market demand. On the whole, EDI promotes strategic planning and gives your businesses an edge over others.

CloudGen has the right smart solution called SmartEDI, which can perfectly fit into your Logistic needs and make the business happen in the most acceptable desired format. Our team of experts never fail to satisfy customer expectation and always maintain maximum delivery excellence.

Watch Out for 2020 EDI Trends and How EDI Is Changing the World

How EDI is Changing the World

Electronic Data Interchange was not born yesterday. It has been around for decades, and in spite of several developments and revolutions, EDI has remained a pillar in the realm of B2B communications and collaborations.
And as new technologies develop, it is critical to reevaluate the role of electronic data interchange in the supply chain.
Let’s take a look at how EDI is changing the B2B landscape, along with some EDI trends for 2020 and beyond.

IoT

IoT – Internet of Things

Breaking it all the way down for everyone, what is IoT and why is it essential, we here at CloudGen are investing heavily in IoT and think you need to be too! Here is why.

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