Author: Chad Symens

The EDI 864 Transaction Set is the electronic equivalent of a text message. This transaction is designed for the transmission of various communications in a human-readable form versus using computer processing. Information transmitted via the 864 could include;

• Read Messages
• Explanations
• Contracts

An 864 document includes:

• Message Date And Time
• Recipient Identifying Information
• Free-Form Message Text

With the free-form text format, the 864 is known to be a flexible transaction. It allows companies to use EDI 864 for many different purposes, which includes vendor, supplier, or trading partner notifications. The 864 transaction was specifically implemented to be a one-time communication. Despite that, there’s a handful of businesses that have adopted it for regular use, especially for communication when other EDI transaction codes don’t exist.

EDI 864 Format

ISA*01*0000000000*01*0000000000*ZZ*ABCDEFGHIJKLMNO*ZZ*123456789012345*101127*1719*U*00400*000003438*0*P*>
GS*TX*4405197800*999999999*20111219*1731*503*X*004060
ST*864*000000974
BMG*18*999994627
MIT*999994627**80*55
MSG* ABC CORP EDI INVOICE ERRORS EDIT DATE:2011-12-18*NP
MSG* TXT NBR: 999994627 REPORTED TO: EDIT TIME:18:44:52*SS
MSG* 1 EDI SOURCE*SS
MSG* SENDER ID: 4405197800*SS
MSG* THE FOLLOWING INVOICES HAVE BEEN REJECTED DUE TO*DS
MSG* VIOLATION(S) OF THE ABC CORP MAPPING SPECIFICATIONS.*SS
MSG* YOU MUST CORRECT AND RETRANSMIT UTILIZING THE SAME INVOICE*SS
MSG* NUMBER WITHIN 5 BUSINESS DAYS. OTHERWISE, THESE REJECTED*SS
MSG* INVOICES WILL BE DELETED FROM OUR SYSTEM AND WILL NOT BE*SS
MSG* PAID.*SS
MSG* INVOICE NUMBER E R R O R M E S S A G E*DS
MSG* 999999 ED05 INVALID STORE NUMBER RECEIVED*SS
SE*19*000000974
GE*1*503
IEA*1*000143287

EDI 864 Speficiations

The X12 820 transaction set provides the EDI format for transmitting information relating to payments. It is typically used in conjunction with an electronic transfer of funds for payment of goods, insurance premiums or other transactions. The actual funds transfer is often coordinated through the Automated Clearinghouse (ACH) system, and an 820 may be effectively wrapped in an ACH banking transaction. The 820 transaction is used in a number of situations:

• Used by companies to transmit instructions to banks for making a payment. (Example: Funds Transfer)
• Used by companies to communicate the details of a pending payment, adjustments as well.
• Used by companies to provide premium payment information to health insurance plans.

The details included in a 820 document would be;

• Bank Account Number
• Account ID
• Payer Identification
• Payee Identification
• Billed Totals
• Payment Totals

This information will give suppliers and health plans an opportunity to reconcile payments they receive against invoices if an issue comes forth. In healthcare, the 820 is similar to the EDI 835 transaction set. The 820 is specifically for plan sponsors, which would be companies that provide healthcare benefits to their employees. It also allows them to transmit information on premium payments to health plans. The 835 is used by health plans, used for transmitting information on payments to healthcare providers.

EDI 820 Format

ISA*01*0000000000*01*0000000000*ZZ*ABCDEFGHIJKLMNO*ZZ*123456789012345*101127*1719*U*00400*000003438*0*P*>
GS*RA*4405197800*999999999*20111219*1726*299*X*004060
ST*820*0289
BPR*I*4858.77*C*ACH*PBC
TRN*1*8888856834
CUR*BY*USD
REF*ZZ*8888856834
DTM*020*20111213
N1*PE*1 EDI SOURCE
REF*VR*999999
N1*PR*ABC CORP
ENT*1
RMR*IV*999742**631.55*644.44*12.89*PT*0
REF*PO*9995987985
DTM*999*20111206
RMR*IV*999734**489.81*499.81*10*PT*0
REF*PO*0007986970
DTM*999*20111206
RMR*IV*999740**882.51*900.52*18.01*PT*0
REF*PO*0007987985
DTM*999*20111206
RMR*IV*999735**1559.45*1591.28*31.83*PT*0
REF*PO*0008987657
DTM*999*20111206
RMR*IV*999736**7.78*7.94*0.16*PT*0
REF*PO*0005987886
DTM*999*20111206
RMR*IV*999744**342.17*349.15*6.98*PT*0
REF*PO*0009988315
DTM*999*20111206
RMR*IV*999741**946.68*966*19.32*PT*0
REF*PO*0008987985
DTM*999*20111206
RMR*OS*64024003**-1.18*-1.18*0*CM*0
REF*PO*990209
DTM*999*20111202
SE*35*0289
GE*1*299
IEA*1*000000299

EDI 820 Specification

The EDI 810 Invoice transaction set is the electronic version of the paper-based invoice document. It is typically sent in response to an EDI 850 Purchase Order as a request for payment once goods have shipped out or services have been provided. A vendor can create an EDI invoice transaction set (EDI 810) that usually would contain the following:

• Invoice Details – Invoice Number And Date
• Item Information – Prices And Quantities
• Shipping Details – Name, Address, Zip Code
• Payment Terms – Agreements On Payment
• Discounts – Promo Codes Or Promotions

Once an EDI 810 transaction is transmitted, additional EDI documents could follow, which may or may not include:

• EDI 997 Functional Acknowledgement – Used To Confirm Receipt of the EDI 810
• EDI 864 Text Message – Used To Report Business Violations Found in the Invoice
• EDI 820 Remittance Advice – Details Payment of the Invoice

EDI 810 Format

ISA*01*0000000000*01*0000000000*ZZ*ABCDEFGHIJKLMNO*ZZ*123456789012345*101127*1719*U*00400*000003438*0*P*>
GS*IN*4405197800*999999999*20101205*1710*1320*X*004010VICS
ST*810*1004
BIG*20101204*217224*20101204*P792940
REF*DP*099
REF*IA*99999
N1*ST**92*123
ITD*01*3***0**60
IT1*1*4*EA*8.60**UP*999999330023
IT1*2*2*EA*15.00**UP*999999330115
IT1*3*2*EA*7.30**UP*999999330146
IT1*4*4*EA*17.20**UP*999999330184
IT1*5*8*EA*4.30**UP*999999330320
IT1*6*4*EA*4.30**UP*999999330337
IT1*7*6*EA*1.50**UP*999999330634
IT1*8*6*EA*1.50**UP*999999330641
TDS*21740
CAD*****GTCT**BM*99999
CTT*8
SE*18*1004
GE*1*1320
IEA*1*000001320

EDI Specifications

The X12 855 transaction set is called a Purchase Order Acknowledgement. The 855 EDI transaction code is used by sellers to confirm the receipt of a purchase order (EDI 850) from the buyer, which completely eliminates one’s need to call or fax a confirmation document. The 855 also communicates whether the purchase order was accepted, rejected or if any changes may have been made to the accepted orders by the seller. Just like with most acknowledgement transactions, EDI 855 can indicate that the order was accepted, rejected or accepted with changes, which looks like this:

• Accepted – The purchase order has been accepted.
• Rejected – The purchase order has been rejected.
• Accepted With Changes – Changes were accepted to the purchase order. (3 outcomes)
  • All line items are accepted, freight changes or cash terms. (Header Level Changes Only)
  • Change or reject one or more line items, no header-level changes would be made.
  • Header-level changes and one or more line items have been changed or rejected.

Each one of these acknowledgements could be provided with or without an indication of product availability. The 855 transaction could also be used to communicate pre-arranged merchandise shipments directly from the vendor. The seller will usually transmit an 810 Invoice once the product ships. In some cases, an 856 Advance Shipping Notice (ASN) must be provided prior to the shipment.

EDI 855 Format

ISA*01*0000000000*01*0000000000*ZZ*ABCDEFGHIJKLMNO*ZZ*123456789012345*101127*1719*U*00400*000003438*0*P*>
GS*PR*4405197800*999999999*20110527*1719*1421*X*004010VICS
ST*855*1001
BAK*00*AC*ABC123*20000430*****20000430
DTM*067*20000507
N1*ST**21*HO1000A00
PO1*1*10*CA*72.95*CT*UK*50387698433528
ACK*IA*10*CA*067*20000507**UK*50387698433528
PO1*2*25*BX*15.75*CT*UK*30387698775411
ACK*IA*25*BX*067*20000507**UK*30387698775411
CTT*2
SE*10*1001
GE*1*1421
IEA*1*000004438

EDI 855 Specifications

What is EDI?

EDI stands for Electronic Data Interchange. EDI combines a system and processes to give businesses the ability to exchange documents and transactions between trading partners in a standard electronic format. We can use a quick example of this, any retailer can send a purchase order (PO) to a vendor digitally using EDI versus having to send over a paper document or fax. They would use the code EDI 850, which is the EDI code for purchase order. In total, there’s a lot of EDI transaction codes that you’ll need to get familiar with. EDI has reduced our need for paper and has allowed transactions to become very fast.

EDI automation is a term you’re starting to hear more about, it can greatly improve your data accuracy while also ensuring transactions never get lost through the process. EDI has allowed countless companies to eliminate manual data entry and processing needs, which has allowed companies to eliminate human errors due to manual data entry.

EDI has many layers, it can also help with your security, giving you an additional line of defense against improper documentation and fraud.

A wide variety of business and transactional documents can be standardized and exchanged via EDI, these include but are not limited to:

• Invoices

• Purchase Orders (POs)

• Purchase Order Changes

• Purchase Order Acknowledgements (POAs)

• Credit Adjustments

• Advanced Ship Notices (ASNs)

EDI enables all of the retail supply chain agility needed to better deliver on consumer expectations in today’s shifting landscape. On the consumer side, EDI supports the process management that pulls ecommerce orders through the fulfillment and shipping queues to keep delivery promises. EDI can also help you decrease stock outs, backorders and late deliveries. When a customer gets their order late, they have the right to be upset, wouldn’t you? Sure, some cases are unique, but you always have to think about customer service and maintaining the highest level of satisfaction possible.

When we look to the business side, EDI has a lot more benefits. For starters, it can shorten lead times and enables retailers, suppliers, distributors, brands, manufacturers and other stakeholders to improve inventory management while engaging in accurate and speedy communications. With EDI, businesses can gain efficiency, save money, scale easily and address the needs of working with larger trading partners.

Benefits of an EDI integration

Not all EDI solutions are created equal. They have different strengths and weaknesses. They range from the most basic, which is simply a web portal through which business documents are sent, all the way to fully integrable EDI systems that can connect with other systems in the business.

When an EDI system is integrated with other systems, the possibilities for gains in efficiency and reductions in errors can multiply exponentially. EDI systems can break down the silos that exist within companies that use multiple systems for different departments and duties.

Fully integrated EDI solutions can connect to:

• ERP

• WMS

• CRM

• Accounting Software

• CMS

• Shipping Programs

When all of these systems can “talk” to each other, organizations gain the cross-channel and cross-departmental visibility and communication necessary to meet the demands of today’s retail and supply chain landscape.

Learn how you can reclaim time and resources using EDI automation.

In-House EDI vs. Outsourced EDI

Besides integrated EDI and non-integrated EDI, you also have in-house EDI and outsourced EDI. Every business, with varied capabilities, resources and needs, which means you’ll need to choose the EDI solution that best fits your business.

In-House EDI

Traditional EDI solutions are “do-it-yourself”, in-house and onsite at the business. If you’re building an EDI solution from the ground up, you will have more cost upfront to invest in, this can include but is not limited to: software, hardware, staffing and other resources. The costs may be less once the system is in place, but may increase as the company grows and more addons are needed.

Online EDI Solutions

With an online EDI solution, you should be able to access a portal via the internet, either through the web or an EDI app. Online EDI solutions do have some perks over  traditional EDI departments, one often being lower costs. Despite that, they may not have the ability to do full integrations to other systems. If that’s the case, you may end up with manual data entry tasks. More so, some online EDI solutions may require an investment of onsite resources to ensure existing networks do have the bandwidth to accommodate the flow of data.

Cloud-Based EDI Providers

Cloud-based EDI solutions usually offer a little bit of everything. You’re likely looking at an upfront setup cost and monthly subscription fee. Even so, this solution is far less than traditional in-house EDI and would be scalable to the needs of your business. In fact, some cloud EDI experts have claimed a savings up to 60 percent or more. Since cloud EDI providers maintains their own hardware, software, network, upgrades, compliance requirements and more, cloud EDI reduces infrastructure expenditures and staffing needs compared to traditional EDI.

(5) Reasons You Need EDI

Many businesses seek out an EDI solution because they’ve been asked to by an existing or potential trading partner. However, even without a trading partner asking for it, there are many reasons why retailers, vendors and others in the supply chain could benefit from implementing an integrated EDI solution.

(1) Costs Of Inaccurate Data

Companies and businesses that don’t have EDI systems usually rely on manual data entry at multiple points throughout the order process, throughout many points across the organization. Every manual data entry point is a chance for errors, errors can compound other errors and you’re left with a ton of mistakes that can hurt your business. The costs of late shipments, delivery of incorrect orders and paying inaccurate invoices adds up. You need your retail data to be accurate. If inaccurate data is coming in,  your retail forecasts will be wrong. EDI helps by eliminating human errors from your informational processes.

(2) Everything Is Moving Faster

Customers are always driving change in the way purchases are made, due to this, the whole supply chain is moving at a much faster pace than in the past. If one of your trade partners need a guaranteed delivery date of 2 days, but your existing processes require you to deliver in 3-4 days, that’s a big problem. EDI automation of documents enables accurate, efficient and streamlined processes to meet the high-speed demands of today’s retail, supply chain and consumer expectations. The supply chain is moving fast and it won’t slow down, you have to be ready, EDI automation is a smart idea.

(3) Trading Partners Are Vital

While retail supply chains operate quicker, suppliers, retailers, distributors, vendors, 3PLs and other organizations must be on the same page as your company. If your supply chain is relying on old legacy systems or outdated processes, you can guarantee it’s slowing your whole network down. In fact, there’s a lot of retailers and brands out there that won’t work with a partner that doesn’t have EDI implemented. Some of the biggest brands in the world require you to have EDI.

• Belk
• Home Depot
• Lowes
• Target
• Walmart

Supply chain efficiency matters, accuracy and automation that EDI offers a company can help retain trading partners and open the door to new opportunities.

(4)  Inventory Surpluses And Stockouts

When points of sale, ecommerce order submission, fulfillment processes, tracking shipments and other systems that don’t communicate with one another are going to cause you problems. If you have to manually enter data, it can make forecasting a major headache and you’ll be open to errors. With an integrated EDI solution, ecommerce platforms, accounting, ERP and other business solutions can communicate with each other, you can ensure you’re getting the most accurate transmission, collection and analysis of data possible.

(5) Limitations On Resources

As your business grows, resources such as inventory, staffing, space allocation and other will have to grow also. The last thing you want is bottlenecks that stunt your growth and progress. EDI can add agility, elasticity and scalability to your existing assets. With information and forecasting accuracy, EDI is going to enable you to have more precise inventory management, staffing, warehouse operations and other assets. When manual data entry requirements are reduced or eliminated, you can always move these employees to new departments. You can offer retraining to employees that want to stay with the company.

It’s never easy to say goodbye to an employee as data entry jobs are a dying breed today. However, the benefits of EDI are greater versus relying on manual data.

EDI 852 Reporting

Here at Accelerated Analytics, we provide EDI 852 reporting for our clients. If you’re a retailer, you likely already know how important EDI 852 data is. A product activity report (EDI 852) is a document that focuses on 2 main factors:

• Data On Current Products And Inventory
• Shows How Products Are Selling – POS Data

Working efficiently with EDI 852 data requires a good analysis tool like Accelerated Analytics^®. Otherwise, the merchandise planner is left to sort through line after line of data to find problems and opportunities. By using Accelerated Analytics^®, the routine tasks of formatting and consolidating data are eliminated, and exception logic can be used to save time.

If you’d like to learn more about our EDI 852 and POS Reporting, be sure to reach out. You can reach us by using this contact form or by scheduling a demo to see our software in action.

EDI 997 – Functional Acknowledgement

The EDI 997 transaction set is known as a Functional Acknowledgment or FA, which is often sent as a response to other EDI transactions received.

An EDI 997 is the same thing as a receipt, it acknowledges a specific EDI transaction or a group of EDI transactions which was received.

It is important to note that when you receive an EDI 997 in response to a transaction you sent yourself, you only know that your document arrived and was processed by the recipient’s EDI translator. It doesn’t provide any indication that your trading partner agrees with the contents of the prior transaction or that the transaction met all their business requirements.

For example, a 997 sent in response to an EDI 810 (Invoice) transaction does not indicate that the pricing or terms in the invoice were accepted, only that that invoice transaction was received and identified. At the most basic level, the acknowledgement will only contain an acceptance or rejection notification. However, the remote EDI translator will perform some validation of the EDI standards before responding. Therefore, at more advanced levels, some trading partners will send more detailed EDI 997s that describe individual elements that contain syntax errors when rejections occur.

EDI 997 Specification

EDI 997 Format

ISA*01*0000000000*01*0000000000*ZZ*ABCDEFGHIJKLMNO*ZZ*123456789012345*101127*1719*U*00400*000003438*0*P*>

GS*FA*999999999*4405197800*20111206*1100*1*X*004010VICS

ST*997*0001

AK1*PO*1421

AK9*A*1*1*1

SE*4*0001

GE*1*1

IEA*1*000000001

Source: Accredited Standards Committee X12. ASC X12 Standard Table Data

EDI 850 – Purchase Order

The EDI 850 is also refereed to by EDIFACT ORDERS and x12 850 Purchase Order. The EDI 850 represents an electronic purchase order that’s sent from a buyer to a seller, which request their want to buy goods or services. The electronic purchase order is one of the most common documents that should be included in all automated EDI systems.

The EDI 850 is a Purchase Order transaction set, used to place orders for goods or services. The EDI 850 usually provides the same information you would find on a Purchase Order (PO) document, which would include:

• Items And Prices
• Quantities Ordered
• Shipping Details
• Payment Terms
• Discounts Applied

Companies that are making purchases usually use EDI purchase orders to order products to be shipped to a distribution center, to store locations or to end consumers. This document could have a single ship-to location or it can have multiple ship-to locations, such as for cross-dock orders.

EDI 850 Specification

This X12 Transaction Set contains the format and establishes the data contents of the Purchase Order Transaction Set (850) for use within the context of an Electronic Data Interchange (EDI) environment. This EDI transaction code can be used to provide for customary and established business and industry practice relative to the placement of purchase orders for goods and services. This transaction set should not be used to convey purchase order changes or purchase order acknowledgment information as other EDI codes would be used for those.

EDI 850 Format

ISA*01*0000000000*01*0000000000*ZZ*ABCDEFGHIJKLMNO*ZZ*123456789012345*101127*1719*U*00400*000003438*0*P*>
GS*PO*4405197800*999999999*20101127*1719*1421*X*004010VICS
ST*850*000000010
BEG*00*SA*08292233294**20101127*610385385
REF*DP*038
REF*PS*R
ITD*14*3*2**45**46
DTM*002*20101214
PKG*F*68***PALLETIZE SHIPMENT
PKG*F*66***REGULAR
TD5*A*92*P3**SEE XYZ RETAIL ROUTING GUIDE
N1*ST*XYZ RETAIL*9*0003947268292
N3*31875 SOLON RD
N4*SOLON*OH*44139
PO1*1*120*EA*9.25*TE*CB*065322-117*PR*RO*VN*AB3542
PID*F****SMALL WIDGET
PO4*4*4*EA*PLT94**3*LR*15*CT

Source: Accredited Standards Committee X12. ASC X12 Standard Table Data

Every stage, process and function across your global supply chain is vital. Just one failure in your supply chain can be enough disrupt the flow. This is exactly why inventory management is among the most consequential elements of your supply chain. It serves as the pillar for the whole end-to-end process, balancing the inbound flow of materials and products with outbound shipments to distributors, retailers or out to your consumers.

In the best case scenario, the entire supply chain process is regulated by both existing and expected customer demand. Due to this, inventory management needs to be both reactive and proactive. It has to respond quickly to shifts in demand but also use every tool at its disposal to anticipate how demand may change, which allows you to make adjustments in your supply chain production rates and shipments as needed.

This is where technology can give your company an advantage, giving you access to the technologies and services you need to meet current customer demand. AI, data analytics, and the cloud can help you do just that. These 3 technologies give companies visibility in 2 key areas:

• Suppliers, Logistics And Transportation Partners
• Customer Marketplace

The Age Of Modern Inventory Management

(1) Using AI And ML – No one can dispute the fact that artificial intelligence (AI) and machine learning (ML) technologies are the future. When combined with AI and ML, your data analytics is enhanced. For example, these technologies are helping drive a shift from traditional demand planning methods to automating demand. Yes, demand automation, the right technology can make a huge difference in your inventory management.

(2) Data Analytics – One can argue that data analytics is one of the most important inventory management aids, especially when it pertains to market demand. With all of your data in hand, you will be able to better forecast demand, shifting from reactive to more proactive in the process. The data feeding and analytics engines can include everything from actual sales numbers and trends to social media posts, weather forecasts, and information on labor strikes. POS Data shows sales and inventory data down to a SKU/store level of detail, which is extremely important for all retailers. Data and analytics is your key to going next level with your inventory management.

(3) Leverage The Cloud – The Cloud gives you scalability, allowing you to quickly respond to production and delivery. If you need to increase production, the cloud makes it quick and easy to do just that.

(4) Reimagine Your Inventory Management – The inventory management function requires start to finish visibility across your entire supply chain, the best way to get this comprehensive visibility is with the cloud. This will allow you to see everything, from raw materials to your customer’s sale. Still, there’s a few things you need to focus on;

• Having the ability to collect data on your cloud-enabled technology, API integrations can give you that ability, which ensures you’re getting up-to-date data from your supply chain.
• Gaining visibility on your inventory throughout your supply chain can help you avoid stockouts, excess or shortages.
• Being able to see your inventory in real-time is a huge advantage, it allows you to react immediately. By doing so, you can take the right steps to ensure customer service is never overbearing.
• With your ability to control demand across multiple tiers, you can automate inventory replenishment to improve supply chain efficiency.
• Just like with your supply chain pillars, inventory management needs to evolve to keep up with changing customer demands. The gained visibility to customers, the market, suppliers, logistics and transportation partners is possible through AI, data analytics and the cloud. These are key to modern inventory management.

In this guide, you’ll learn how EDI works for retailers, grocers and e-commerce retailers. Explore why companies in the retail industry use it to help automate, improve and speed up order management and other processes. Discover the benefits of EDI for your retail or grocery business, and how it can help you work better with your trading partners.

How Does EDI Work In Retail? Why Is It Important For Today’s Retailers?

There’s a reason why more and more retailers are turning to EDI, it allows them to manage their business relationships with suppliers, vendors and distributors, and for good reason.

EDI alone eliminates the need for manual data entry, faxing, phoning and emailing about orders and transactions. Due to this, transactions are a lot faster and more accurate than any period prior. In a retail world that’s moving faster and faster, EDI is becoming vital for all retailers, e-commerce and grocers. EDI has become a pillar for effective supply chain management.

EDI is a language that’s known in many business systems and it ensures all of your trading partners and suppliers are on the same page.

Examples Of How EDI Works For Retailers, E-Commerce And Grocers

When ever you need to place an order with a supplier, you’d create an electronic purchase order the system you use. Your EDI solution then creates an EDI version of that purchase order (EDI 850) and it’s sent to the supplier.

Even though your supplier may use different technology than you, their order system is able to correctly translate and receive the information automatically, so as long as they’re EDI compliant. Nearly all of the major retailers will be EDI compliant, which ensures all transferred data is accurate.

Once your supplier receives the purchase order, they will send you an EDI code (EDI 997), which means your order was received.

When your order is ready to be shipped out, the supplier will send you an advance shipping notice (EDI 856). Next, you’re going to receive an invoice from your supplier (EDI 810) and you can check to make sure that order is accurate and you received the correct quantities (EDI 861).

Using EDI codes is much easier than having to manually enter all this data, hence the reason EDI has become so popular over the years.

Imagine if instead of spending hours matching up paperwork, you reconciling your orders with a few keystrokes. By automating an invoice (EDI 810) match to the purchase order (EDI 850) and quantity received (EDI 861), everything is already available in your system to allow you to issue an accurate payment (EDI 820).

When it comes to receiving your products and selling them, (EDI 852) can provide data on the inventory and current products you have. It can also show how those products are selling from your POS Data.

EDI Benefits For Retailers, E-Retailers And Grocers

There’s a wide range of benefits for using EDI. EDI is the foundational pillar for automated order processing and inventory management. EDI is proven to streamline and improve workflow while enhancing supply chain predictability.

• EDI Is Cheaper – Paper based orders can cost you upward of $50 per order or more. With EDI, you could pay as low as $1 for transactions.
• Reducing Data Errors – Anytime you have manual data entry, errors are a concern. EDI reduces your need for manual entry and you can fully automate it.
• Better Inventory Predicatability – EDI allows you to accurately analyze your inventory, helping you reduce stockouts, surplus, markdown, etc.
• More Attention On Growth – With the right EDI solution, you’re going to be able to automate a lot of processes, allowing you to focus more on your growth.
• Better Accurate Forecasting – When your data is accurate, the data used for forecasting is going to be more accurate, EDI systems are extremely accurate.
• Responding Quicker – EDI gives you full control over on-hand inventory. If there’s ever an disruption, you can act fast with the data in hand.

EDI compliance refers to the ability to exchange business documents in the way your trading partner requires.

Each document must adhere to a specific EDI format to ensure the successful exchange of EDI documents.

Do You Need EDI Compliance?

Nearly all major trading partners require you to be EDI compliant, this includes;

• Belks
• Bed Bath & Beyond
• Dillards
• Home Depot
• Lowes
• Target
• Walmart

To answer that question, it’s a BIG YES! You need it, you can’t do without it.

How Do You Become EDI Compliant?

There are a few key steps in the process to becoming EDI compliant.

• What Does Your Trading Partner Require – The first step of EDI compliance is understanding the requirements your specific trading partner has. Fortunately, most trading partners will have resources on their website that detail the full set of requirements and expectations with respect to EDI.
• Choosing Your EDI Solution – When it comes to choosing your EDI solution, you have a few different options. You can outsource your EDI requirements to a third-party provider, you could also build an in-house EDI solution. For most companies out there, building an in-house EDI solution can be a huge challenge. This process involves developing the software needed to securely exchange EDI documents. However, as long as you’re working with the right provider, an in-house solution can be built.
• Testing Your EDI – Once you have your EDI solution set up, you’re ready to move to the next stage: testing your EDI. You’re going to need to test your EDI solution to ensure that all your documents can successfully be exchanged in the proper format with your trading partner(s). After testing is done with the trading partner, you’re ready for business!
• EDI Reporting – If you’re using EDI 852, you need an EDI reporting solution. Accelerated Analytics provides EDI reporting, we also provide POS reporting. EDI data is not just about invoices and purchase orders. EDI 852 is also referred to as a product activity report. It provides data on your current products and inventory. If you’re a retailer, EDI 852 is vital to growing your company. To learn more about our EDI 852 reports, take a minute to reach out here.