EDI in Logistics
About the industry
When we hear supply chain, we immediately think of logistics. Logistics impacts and facilitates value creation between companies, for both electronic information and physical goods. Professional logistics service providers have become indispensable to the consumer goods industry and many other industries. From handling special products such as frozen or fresh goods to taking care of a retailer’s or manufacturer’s entire inventory management: it’s all about logistics.
More than for any other service provider, logistics service providers must abide by the “time is money“ principle. They need to process large amounts of information swiftly and efficiently in order to deliver the right goods to the right place at the right time. Key success factors include cost-efficiency, swift reaction times and flexibility regarding technical requirements.
The benefits of EDI
The exchange of electronic business data (EDI) helps logistics companies in precisely the above-mentioned areas:
- High degree of process automation
- No more need for manual entry; avoidance of any resulting errors
- Shorter reaction time for client orders
- Better planning security
The harmonization of data exchange makes processes much easier, especially given the diverse nature of the industry. A standardized “language” (i.e. data formats) via a standardized communication platform ensures integration between logistics service providers and their business partners.
Most frequently used EDI messages
- Instruction to despatch (INSDES)
- Instructions of transport (IFTMIN)
- Despatch advice (DESADV)