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.

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