EDI stands for electronic data interchange. It’s the structured data transmission between organizations by electronic means. Currently, EDI is mandate of large retailers. Implementing EDI as an order management system can help you manage orders of customers from any channel. It can help you know how automation ensures optimal customer support by offering visibility to your entire supply channel.

An order management system integrates your data and operations with global suppliers, regional warehouses, customers, and streamlines inventory tracking with your accounting system.

The Significance of EDI in Warehouse and Fulfillment

No matter how big company you own, implementing EDI fulfillment is necessary for optimal competitiveness and immense growth. It minimizes costs and increases operational performance throughout your organization.

From the very beginning, EDI enhances data exchange while improving accuracy. Your customers and company will get benefited from the streamlined administration, improved information flow, more precise accounting, minimal costs and better inventory management.

After all, electronic transactions are efficient; so the customers using EDI prefer to work with vendors using EDI fulfillment. From operational, financial and technical view, the right EDI solution makes sense a irrefutable business.

The Key Benefits of EDI

• Minimizes or reduces manual data entry errors
• Streamlines processing of transactions
• Improved productivity without increasing number of staffs

 

Integrating Order Management with EDI

Working with traditional retailers has accounted for the bulk of your incoming orders. When you get an ED purchase order from a large retailer, the handling process that order should be outlined in your order management system including store pre-packs, special handling etc.

First of all, a sales order is designed from the EDI order followed by the creation of one of many shipment types like a direct to store. With all EDI transactions, you will receive an electronic response as to whether your advanced shipping notice and invoice were received successfully.

Integrating Order Management with E-Commerce Marketplaces

There are key differences in how an OMS processes an eCommerce order as compared to a standard fulfillment order. For instance, usually there is no requirement for an invoice to receive payment; but you may be asked to send an invoice to keep a record of the sale with some eCommerce retailers.

Here’s how it works?

An order in from a retailer and the OMS transforms it into a sales order as well as generates shipment details. Once the notification of shipment of goods is submitted, the order will then be closed.

Upon the confirmation of shipment, you will get payment for the shipment from the eCommerce marketplace. In a few circumstances, invoices are utilized; so when choosing an OMS, make sure it can handle its jobs very well.

Integrating OMS with E-Commerce Platform Orders

The OMS process to deal with eCommerce platform orders for direct to consumer works like a regular EDI order. In this situation, there are no invoices available for processing. The orders can be turned into the real sales order to be processed, shipped and tracked.

The remittance of payment is derived from confirmation of shipment instead of an invoice. The remittance of payment is derived from the shipment confirmation instead of an invoice. The inventory gets updated on your website on a scheduled basis.