EDI system: what it is, care when deploying, benefits and more

4 minutes to read

The need for improvement is a constant in the logistics sector. Process innovation, delivery optimization and technology renewal are practices that help improve operation performance. One of these solutions is called EDI system, a tool that allows interaction between manufacturers’ software and their customers.

We are talking about the B2B relationship, i.e. Business to Business, in which two companies establish commercial relationships. The purpose of this tool is to make it possible to share information about the purchase, sale and distribution transaction.

In this article we will talk more about this model, what its benefits for logistics are and how its implementation works. Keep reading and see all the details!

What is EDI system?

EDI stands for Electronic Data Interchange. This system is a technology that was developed to standardize the communication between different information systems.

When companies establish a flow of data exchange, it is essential to allow records to be understood by both parties. For this to happen, the EDI standard was created, which is nothing more than a guide that guides the generation of files.

In the logistics sector, the model adopted is called EDI PROCEDA and enables the sharing of information related to the transportation of goods. Thus, it is possible to follow each step of the order, from the issuance of tax documents to the payment of freight service.

What are the advantages of this system?

The adoption of EDI was responsible for optimizing the relationship between companies and customers. Among the main advantages are:

. the possibility of receiving orders automatically;
. reducing the order processing time;
. replenishing stock according to need;
. the elimination of errors due to manual entries;
. the generation of reliable and agile information.

Due to its wide acceptance in the market, this technology is increasingly accessible. In this scenario, even small companies are able to invest in this system, which increases their chances of standing out in a competitive market.

What precautions should be taken when implementing EDI system?

The acquisition process and the subsequent implementation of a system always requires care to ensure that there are no unforeseen events. If you have already made the decision to invest, it is important to know what to expect during the installation step.

1. Align your expectations
This is an important change that can significantly change the execution of activities. Therefore, you should seek to know which areas will be affected and what the team’s training need will be. Also, see what benefits achieved in the short and long term are.

2. Choose the most suitable solution
Given the wide range of EDI system providers, it is essential to choose the company that provides the best service according to your demand. For this reason, create partnerships with companies that offer technical support, are available for updates and enable customization of the tool.

3. Review the flow of information
The acquisition of a new system is the ideal opportunity to review work processes that can increase their efficiency and eliminate tasks that do not achieve their purpose. With this, it is possible to generate a more agile flow and compatible with EDI technology.
Finally, we must highlight that the use of the EDI system is a natural evolution of the logistics operation. Its emergence was responsible for creating commercial relationships that would not have been feasible without the exchange of strategic information.

For that reason, if you think that this concept can help your business, we have the resources you need. Contact us to find out more.

The VMI Portal is a portal of news and information on systems of collaboration between suppliers and customers, which is growing continuously. The idea is to promote and disseminate the concepts of Supply Chain Management (SCM) and Vendor Managed Inventory (VMI), among other topics.

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