In a recent study by the University of Tennessee, electronic connectivity attained with B2Bi services have helped organizations to do better business. 69% of the surveyed accepted that they are able to respond quicker and faster for the client change requests. This helps in creating a huge difference for the client. Better and faster communication with third party vendors automatically culminates into higher customer satisfaction in the logistics industry. Therefore, organizations have been keen on implementing electronic communication solutions within their organizations. EDI solutions have remained one of the first preferences of the shippers. We have been able to figure out that how EDI solutions have been able to pass the test of time and are still considered as one of the essential communication software for the logistics and transportation industry.
There are few areas where EDI solutions are still considered as undisputable kings. This has helped them to enjoy the kind of monopoly into the market for most of the legacy systems adaptable to EDI solutions. This has remained a big advantage for the EDI solutions to become relevant even after decades of its inclusion into mainstream operations. But this doesn’t discredit the EDI solutions for the unique value it brings to the supply chain operations. Therefore we can say that EDI solutions have rightfully earned the coveted position of one of the most used electronic communication technologies in the logistics and transportation industry. Let’s check out the unique traits which make EDI indispensable for the logistics organizations.
EDI solutions are for faster communication
Logistics and transportation take “Time is money” idiom a bit too seriously. And that’s the reason that any technology which is able to expedite the operations is most beneficial for any logistics player. EDI solutions do fairly well on this parameter. By replacing the manual communications (including emails), EDI solutions have delivered robust communication services at a remarkable pace. EDI solutions have been able to expedite the business cycle by 60% which roughly states as doubling the operations. And it is not that the impact is been felt only on customer side with better consumer experience. EDI solutions have been effectively used in shortening the order-to-cash cycle by 20% or more.
EDI solutions, in the matter of fast communication, are more relevant today than ever before. This is not only due to increasing competition but also due to the need for speedy communications spreading out to B2C businesses. Thanks to the 2-day expedited delivery rapidly becoming a norm in the e-commerce sector, there is no scope to slack here.
Data Size doesn’t matter here
Contrary to email communications, EDI solutions are not bounded by the limitations of data transfer. This works as a cutting edge advantage when it comes to logistics where even the simple communications like the acknowledgment of the shipment need to be filled with the crucial and important details about the shipment. This information is not necessarily small and can require multiple emails to communicate properly via email. No doubt sending multiple emails for single shipment can be cumbersome and not that error-proof.
In EDI solutions, the communication works in an entirely different way. Instead of sending the data files the system sends the EDI codes which are globally standardized. The archiving and translation ensures that the receiver can extract the required information in the exact form as it is stored by the sender via an integrator. This makes the process not only error free but also feasible for a large amount of data transfer.
Easy integration with legacy systems
Being an industry wide standard for more than 50 years surely has its own benefits. Even for technologies. EDI solutions are able to easily integrate with legacy systems due to the fact that they have been the first of the communication technologies developed for industry. EDI solutions, even now, seems to be the market leader due to its penetration and acceptance in the industry.
The wider acceptance of EDI solutions also comes from the fact that it can be used to communicate with almost any supplier at any scale. From small suppliers to a big number of small suppliers- EDI solutions can cater to all of these scenarios. This works exceptionally well for the third party vendors who have to deal with multiple parties on an hourly basis.
EDI solutions increase accuracy
By replacing the traditional shipping documentation. EDI solutions are able to reduce the transaction errors by 30-40%. This is a huge relief for the shippers who suffer the direct impact of losses due to ambiguity in the shipping operations. This also means that the operations can be carried out with greater confidence and lesser checks involved. 211 Motor Carrier Bill of Lading, 214 Shipment Status, 210 Freight Invoice, 310 Ocean freight receipt & invoicing, 410 Rail freight details & invoicing, 204 Load Tender and 990 Load Tender Response are few of the most commonly used EDI codes. Even if the shippers are operating with inter modal shipments, these selected EDI solutions codes make it easier for the freight managers to acknowledge any abnormal response at once they are familiar with them.
In the same study from the University of Tennessee which we have mentioned earlier, it is observed that suppliers were able to save as much as 25%. This is done by shifting to electronic solutions for capturing the data from the customers. This figure is enough to gauge the extent of the positive impact that EDI solutions can impact on your business. But deciding the next essential software solution is not enough in the logistics industry. Having so many players in the system, it is necessary to adequately take care of your organization specific needs while opting for a new software solution.
The core functionality of EDI solutions remains to connect the organization for inter as well as Intra-organization communication. This means that these EDI solutions need to be customized in such a way that the operations remain seamless. With the global standards making EDI implementation much simpler, there are still intricacies which need to be tackled with relevant expertise. For the same purpose, Dreamorbit is consistently providing remarkably innovative solutions to the best of logistics industry with a customized approach for each one of them. If you are struggling with any doubt regarding the match of EDI solutions and your organization, we would be happy to provide a free consultation. Please get in touch and schedule your free consultation to know more.
DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go” for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”. With the support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more about-Dreamorbit