The following article is 100 percent apolitical. We’re in the EDI business and the EDI business alone. That said, it is worth exploring what potential impact a new presidential administration might have on EDI practices for brands and retailers. Ultimately, it depends on an administration’s priorities, particularly in areas like trade policy, data security, and regulatory changes. Here’s what to pay attention to…
Trade Policies and Cross-Border Data Transfers
There are two main things to pay attention to: tariffs and trade agreements and data localization requirements.
Changes to tariffs and new trade agreements may necessitate updates to EDI systems for managing customs documentation and compliance. As an EDI provider, that’s something we’re always paying attention to.
Similarly, if an administration adopts stricter data localization rules or adjusts trade relations with countries requiring localized data storage, brands and retailers may need to adjust how they share and store data through EDI systems.
Data Privacy and Security Regulations
Federal data privacy laws are worth keeping an eye on. A push for comprehensive federal data privacy legislation could lead to new compliance requirements. Retailers and brands using EDI might need to enhance data protection measures or adapt systems to meet stricter guidelines.
Brands and retailers need to pay attention to cybersecurity standards as well. Increased focus on cybersecurity could result in stricter standards for protecting data transmitted via EDI, potentially requiring system upgrades or new certifications.
Supply Chain Transparency
An administration focused on environmental and social governance (ESG) could mandate greater supply chain transparency. This could drive the need for more sophisticated EDI systems to track and report on sourcing, labor practices, and carbon footprints.
Agencies may also use EDI data to ensure compliance with labor laws, environmental standards, or anti-counterfeiting measures, requiring adjustments in how data is shared.
In the near term, these areas of focus are unlikely to garner much attention.
Modernization and Innovation Initiatives
If the administration supports modernization of supply chain technology, brands and retailers may benefit from grants or tax credits that they, in theory, could apply to upgrading their systems, EDI included.
AI policy is another area worth watching. Policies that encourage AI adoption may lead to shifts in how data between brands and retailers is exchanged.
Labor and Workforce Policies
New labor policies could affect how EDI systems handle documentation for compliance, such as tracking labor certifications for international shipments.
Bottom Line
Brands and retailers should monitor any administration's policies and adjust their EDI strategies to stay compliant, efficient and competitive. Because if one thing is certain, it’s change.
