Electronic Data Interchange, or EDI, is how brands and trading partners (retailers) communicate. It’s how they transfer data such as invoices, purchase orders and shipping notices. Done right, EDI reduces manual errors, speeds up processing times and, generally, strengthens the relationship between brand and trading partner.
But sometimes there are issues. Here are some of the most common.
Setup and Mapping Issues
Occasionally, we see brands attempt to handle EDI on their own. They’re almost always met with setup and mapping challenges – especially between systems that EDI has to integrate with.
This immediate challenge can quickly derail processes and requirements. Trading partners will have little patience for delays and inaccuracies.
The solution? EDI software that simplifies the mapping process with pre-built integrations and a streamlined setup process that guides users every step of the way. Layer on a dedicated support team for troubleshooting and EDI setup and mapping will become a piece of cake.
Trading Partner Compliance
Among trading partners, EDI standards change all the time. This can create somewhat of a moving target for brands, making it difficult for them to maintain compliance.
Brands can stay on top of ever-changing EDI standards across trading partners by ensuring that their EDI systems are continuously updated. Automated compliance checks also help monitor for changes and compliance risks.
Standards compliance with trading partners becomes much easier for brands when they have modern EDI software in place.
Data Accuracy and Error Handling
Data discrepancies, incomplete data or incorrect data transmissions are all too common for brands tackling EDI on their own. These shortcomings can lead to chargebacks and strained trading partner relationships.
But with the right EDI software in place, data inaccuracies can become a thing of the past. Brands should make sure that their EDI software is equipped with error-detection and alert systems, regular data validation checks and comprehensive reporting tools to identify and resolve issues quickly.
Integration Challenges
In today’s data-driven environment, a brand’s EDI solution must integrate with its other business systems, most notably its ERP and warehouse management system (WMS).
For brands that experience difficulty with key EDI integrations, they can resolve them by exploring pre-built connectors within their other systems. They can also go with EDI software that bridges the gap between disparate systems with automated workflows.
Scalability and Transaction Volume Management
Many brands struggle to manage spikes in EDI transaction volume during periods of growth or seasonality.
In response, brands should consider EDI software that is cloud-based and capable of handling transaction volume surges without running the risk of performance degradation. Integrating the EDI solution with other business systems (i.e., ERP, WMS) can also help ensure data accuracy in these situations. So too can pre-defined automations and rules within the EDI solution.
Bottom Line
EDI requirements can present a variety of challenges for brands. But with the right EDI software in place, those challenges can often be solved quickly or avoided entirely.
The results? Accurate data. Streamlined processes. Happy trading partners.
