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EDI for Transparency and Inventory Visibility
The ability for stakeholders in an organization to gain visibility into order processes, inventory, deliveries, and disruptions in the supply chain is a win-win for all parties involved. Through the capture and transmittance of real-time data, this can be a reality.
Visibility into B2B transactions and inventory, or lack thereof, has long been a challenge for many organizations. According to IBM, “EDI, which stands for electronic data interchange, is the intercompany communication of business documents in a standard format. The simple definition of EDI is a standard electronic format that replaces paper-based documents such as purchase orders or invoices. By automating paper-based transactions, organizations can save time and eliminate costly errors caused by manual processing.” Through electronic data interchange (EDI), businesses can make faster transaction queries to speed the resolution of shipment and order issues. The embedded AI capabilities can provide real-time intelligence and actionable recommendations, significantly reducing disruption mitigation time. In addition, new, data-driven insights can reveal opportunities to reduce costs and increase efficiencies.
According to IBM, EDI transmissions can be divided into two types:
- Direct connections: Two computers or systems connect directly over the internet without the need for an intermediary, usually using secure protocols.
- In a value-added network (VAN), data transmission is handled by a third party using a mailboxing method.
Coolgear has several connectivity products to aid in both types of EDI transmissions.
Benefits of Supply Chain Transparency
- Disruptions reduced
- Identify potential cost-savings
- Take advantage of data from within and outside your organization
- Ensure that product delivery is not interrupted by costly issues
- Building trust and accountability
- Track and trace products securely
IBM reports that using EDI will make your supply chain more efficient by digitizing and automating business-to-business transactions. The visibility of an entire organization’s ecosystem will be enhanced, leading to supply chain partners having the ability to exchange trusted data on a shared ledger. Utilize accurate, real-time, available-to-promise data that facilitates end-to-end supply chain visibility to better meet demand. Using an AI-powered dashboard such as EDI, you can view processes and data from multiple sources in one place.
Coolgear provides custom solutions to your automation needs, and we have experts that can support your supply chain integration process.
Sources:
https://www.ibm.com/topics/edi-electronic-data-interchange