In the quest to achieve a paperless society, Electronic Data Interchange (EDI) has long been a leading technology. It predates the emergence of Internet and now a chief electronic network connecting just about every business to every other. Earliest used of EDI were internal to companies, used private networks, and enabled a multi-location company to use a common accounting system regardless of location. Also, heavily deployed to track parts of inventories within a business.
EDI provides direct electronic communication between shipper and 3PL computer systems using national and international telecommunication networks and requires agreements between trading partners. The communication is typically done through a VAN (Value Added Network) using international EDI standards such as the American National Standard Institution (ANSI) or EDI for Administration, Commerce and Transport (EDIFACT).
3PL providers use EDI to send invoices, bills of lading, confirmations of dispatch, shipping details and any other information that linked organizations choose to exchange. It provides highly accurate and timely information about customers’ logistics creating business efficiencies by not needing staff to manually collate information.
An overlooked part of running an efficient logistics supply chain is not just the physical movement of product, but how the related data is managed as well. Using this data to your advantage is a smart, quick way to solve many common logistics problems —and EDI is the best mechanism for managing the logistics data in your network.
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