In the past, sending and receiving EDI transactions required technical resources and a high level of engagement. GrowerEDI provides a knowledgeable, experienced data partner that can ease the EDI onboarding and integration process, improve data flow, automate interactions, and provide the data transformations to give you actionable, usable data that is in a language easily understood.

What is EDI?

EDI stands for Electronic Data Interchange. It is a computer-to-computer system for exchanging business data among trading partners by using agreed-upon standards. Today, most national retailers require EDI as the way to send and receive purchase orders and invoices.  It’s essentially the virtual format of these necessary documents in the supply chain business.   

Copyright Advanced Grower Solutions

What Are the Most Common Problems with EDI?

1) Challenges with EDI Setup with a New Retailer

EDI provides many benefits to businesses but there are some challenges that need to be overcome to get maximum value from it. A major challenge with EDI is the complexity of systems and standards that are associated with this technology. In addition to this complexity is getting all parties involved (suppliers, customers and retailers) on board and technical connections setup. GrowerEDI is a full service that can assist you in overcoming these challenges to realize the full benefits of EDI for your business.

Connectivity: This is the first verification step.  Without connectivity, you cannot operate your EDI.  It would be like ordering something online and being unable to get it to the address.  Without it, you’re not able to get the deliverable that you need.  The systems can be complicated, with different technologies, different protocols, and formats.  Systems must be able to transform it which is time consuming, resource intensive, and error prone. 

Exchanging – The connection between the Retailer and Supplier means an agreed-on communication channel like Grower EDI to be set up and tested per EDI document.  Each retailer has its own defined requirements in order to successfully transmit the documents, some as sending and others as receiving.

Data Quality: Both systems are sending vital information, but it is not in a form that is directly usable for decision-making. Traditionally, EDI has been used for order management and shipping. As the supply chain demands continue you will need to analyze and make decisions with the data from other systems as well.

Data Translation: Once the previous steps are in place, now you need to make sense of it.  The data is parsed and made into readable information that we all understand, including sales summaries, shipping manifest, packing labels, inventory amounts, and invoice details.

Although there are many benefits of implementing EDI solutions, there are also challenges that many businesses face. EDI transaction rates can be slow, as they typically only run once a day. This leads to problems with data latency and accuracy. EDI also lacks a uniform format, which means that even if you have an EDI solution in place, you may still need to translate the data into your own format.

2) All The Unexciting But Necessary Transactions To Think About with EDI:

Setting up EDI (Electronic Data Interchange) for your business can be a big job. You’ll need to:

• Find EDI software for your operating system and industry.
• Integrate the EDI software with your existing ERP or logistics software.
• Dedicate time to working with your supplier’s agreed communication channel that you will be using.
• Train staff in monitoring the transactions to prevent errors or mitigate them prior to sending the documents to maintain desired automation.

Receiving purchase orders and sending invoices are the most common EDI documents. They are the backbone of most EDI transactions, but they are not the only ones you will encounter.

These documents can be used to exchange information about the EDI transaction itself, like shipping and tracking data, or to provide additional information related to the terms of an EDI agreement. For example, a purchase order might include a price adjustment clause that references a previously exchanged agreement document.

3) How to Get Paid with EDI

To be an effective supplier, you need to have the capability to accept all documents necessary to operate with the retailer’s trading partner. It is important to receive the necessary documents providing your sales quantities and price levels in order to turn around an invoice to the retailer.  Once the invoice has been received with no errors, a remittance is sent back of the agreed process of payment. GrowerEDI makes this a fluid and more automated process.

4) EDI Automation

EDI is a global standard for the exchange of business documents and data between trading partners. It eliminates dependence on paper-based processes that increase costs, risks, and errors in the supply chain.

No human interaction.  GrowerEDI takes it a step further and automates the setup process from the beginning with your trading partner at setup, then eliminating cost of paper and printing. Since EDI is a global standard for the exchange of business documents it is a ‘known language’ between trading partners, it eliminates dependence on paper-based processes that increase costs, risks, and errors in the supply chain.

Companies that use EDI systems can easily track goods through the supply chain, which makes it easier to spot problems and take steps to prevent them before they lead to financial loss.

5) How To Read EDI?

EDI was developed to allow businesses to exchange data easily and electronically with each other. EDI allows businesses to transmit information between company systems quickly and in a consistent manner. EDI is a software system and does not require any specific hardware or network configuration. It’s difficult for humans to read the raw EDI files as the standards are encoded and are set in the specific character set. Since the raw information exchanged is designed to communicate computer to computer, it can be time consuming to read in this format and difficult to understand.  GrowerEDI will translate the data into something meaningful in order to provide the answers to questions like: What are my sales for last week?  Has that invoice been paid?  Does this PO have the items I need to ship?   

6) EDI Support

What happens when you need help or encounter an error on your EDI? What additional fees will your company be charged? Will their response time be suited for your business hours? Our GrowerEDI team is an all-in-one support team with experts ready to consult, onboard, maintain the B2B relationship, quickly fix an issue should it arise, and provide any direct training necessary for you to conduct business as usual. 

7) The Cost of EDI

Setting up EDI for your business can be more cost-effective than you think, but it’s vital that you know what to expect so you can avoid any potential surprises.

The costs of setting up EDI vary considerably depending on the setup, implementation, and upgrade requirements for your business.

Setting up EDI for your business involves a lot of initial investment, but it will save you money in the long run. How much it costs to set up EDI and how much it saves are sometimes hard to know upfront. Some EDI setups can cost thousands and the rewards are dependent on the level of automation and staff effort reduction as well as the new, faster business insight you receive.

GrowerEDI will work with you and tailor a setup and plan that meets your needs, your data transformation requirements, and the trading partners you utilize.

8) EDI Partner Reputation

EDI is complicated – There are several factors that go into implementing an EDI solution from both technical and business perspectives. You must make sure that your systems can read and write the different formats that are supported by your trading partners, which can include ASCII, DDE, X12, UN/EDIFACT, AIAG, or CIM. You’ll need to find a way to track all the documents exchanged between you and your trading partners so that you can identify any patterns or errors.

Will the provider be around long term? How will they handle ongoing development? It is important that you select a company that is knowledgeable and has great customer service.

Benefits of GrowerEDI

The purpose of intercompany EDI systems is to improve communication by automating the message exchange process. EDI also reduces the amount of paperwork typically involved in these exchanges and removes much of the human error from the process.

Copyright Advanced Grower Solutions

GrowerEDI can help you streamline your business and achieve better efficiency.

GrowerEDI benefits include improved productivity; increased profits; reduced costs; improved customer service; and reduced errors. Although EDI seems complicated at first, it’s easy to understand how it helps businesses.

GrowerEDI offers an array of custom solutions for your specific business needs. We have the technical expertise to set up an EDI standard and are ready to create your custom solution today.  Learn more about GrowerEDI or contact us to schedule a free demo.