Today efficiency in a warehouse operation is of paramount importance and significant value to maintain strong customer relationships. As more and more businesses are incorporating Electronic Data Interchange (EDI) as part of their WMS system they are seeing a major competitive advantage vs their competitors.
In today’s digital world doing manual processing is extremely counterproductive. By using EDI processing and not manual systems warehouses are reducing the risks of inefficiencies by warehouse personnel. Using EDI is key to automating the processing of incoming orders. This will help enable your warehouse personnel to focus on more critical issues.
EDI is very helpful to a warehouse operation as it provides real-time inventory data and helps to reduce overstock situations and stockouts. So when you adapt an EDI system you will see more readily automated inventory updates and re-orders and messages triggers which are based on customer demands and real-time orders.
Speed of response to customers requirements is greatly enhanced when using EDI in your warehouse operation. Specifically, lead times are reduced since workflows are bring automated. When your workflows are automated there is a greater connectivity with 3PL’s and logistics partners through EDI notifications
One of the major advantages of EDI integration are lower costs . There are significant cost savings by reducing the level of paper handling, fewer data entry issues and the probability of less transactional errors.
3PL’s and other supply chain organizations have seen a 25% reduction in clerical costs and administrative overhead through the integration of EDI as part of a Warehouse Management Software (WMS) system. EDI provides supply chain organizations the ability to reduce inventory costs through improved forecasting and re-ordering using automated processes. Industry surveys have found that retailers have reduced inventory levels with EDI optimized JIT management processes. Another significant advantage of EDI, there are fewer penalties and charge backs.
An EDI program as part of a WMS establishes compliance with customer requirements, reduces clerical errors and penalties as they relate to chargebacks. In this regard, an example being automated ASN’s and labeling accuracy helps suppliers avoid fines from retailers.
Customer relationships are greatly enhanced through EDI providing greater visibility and transparency of warehouse functions and processes. With an EDI process, real time data provides a greater customer experience through the use of more improved accurate order tracking and real-time shipping updates and tracking information sent to B2B customers. EDI also allows for immediate responses to urgent or modified orders and changes to seasonal demands and helps to prevent stockouts.
As warehouses strive to grow their partnerships with customers, EDI will help to demonstrate a warehouse’s commitment to accuracy and efficiency. Through an EDI program a supply chain organization will enhance their customer support and build an efficient and strong loyalty with their customers.
In summary EDI is a important mechanism and tool for efficient warehouse operations, greater cost initiatives and improved customer loyalty.