Why do Distributors need EDI?
In today’s global economy, distribution companies need efficient communication and real-time data exchange to stay competitive and meet rising customer expectations.
Whether you work with just a few trading partners or a few hundred, EDI provides seamless coordination and communication, ensuring the timely and accurate delivery of goods.
How does EDI help distributors?
EDI helps distributors streamline the exchange of documents and information with suppliers, reducing manual processes and human error. Automating time-consuming and error-prone tasks increases efficiency, accelerating turnaround times and improving inventory management.
Additional benefits include:
- Enhanced speed and agility
- Strengthened partner relationships
- Reduced costs
- Boosted productivity
- Greater accuracy
- Elevated customer experiences
- Data-driven decision-making
- Increased sustainability
What are the most common EDI documents in the distribution industry?
EDI 850 (Purchase Order) — An EDI 850 is a purchase order presented in a digital format. It contains the same information you would find on a traditional paper-based PO.
EDI 940 (Warehouse Shipping Order) — An EDI 940 instructs a remote warehouse to ship an order. It specifies the items the order contains, shipment dates, ship-to and bill-to information, shipment method, and more.
EDI 945 (Warehouse Shipping Advice) — Warehouses use an EDI 945 to inform trading partners of completed dispatches. It specifies the shipment identification, dispatch date, transportation method, items shipped, quantities, and more.
EDI 943 (Warehouse Stock Transfer Shipment Advice) — An EDI 943 notifies a remote or third-party warehouse that products are being sent to their location. It can also authorize a warehouse to accept a customer return.
EDI 944 (Warehouse Stock Transfer Receipt Advice) — Remote warehouses and third-party logistics companies use an EDI 944 to acknowledge receipt of a manufacturer’s shipment.
EDI 947 (Warehouse Inventory Adjustment Advice) — Remote warehouses and third-party logistics companies use an EDI 947 to notify clients of a change in inventory number or status.
EDI 856 (Advanced Shipping Notice) — An EDI 856 lists the contents of a pending shipment of goods. It contains order information, product descriptions, packaging details, carrier information, and more.
EDI 997 (Functional Acknowledgment) — An EDI 997 confirms receipt of another EDI document and indicates if it has been accepted, rejected, or contains errors.
Why do distributors rely on 1 EDI Source?
We’re backed by decades of EDI experience in manufacturing. And, with over 50,000 trading partner connections, we can ensure easy and efficient compliance. Let us show you what we can do.
