Electronic Data Exchange, or EDI as its most commonly known as, is a protocol that lets 2 computers to connect with each other for the purpose of exchanging data electronically. EDI was 1st developed in the 1960s with the goal of accelerating the movement of shipping & transportation documents. Its application has expanded from allowing the electronic exchange of purchase orders, acknowledgements, and invoices to include global procurement and sourcing.
Electronic Data Exchange in Transportation:
EDI has turned out to be pretty popular in the haulage & transportation industry as transportation firms & load brokers are familiarizing their system to serve to EDI document exchange.
The benefit for those working in the transportation industry is that monotonous high volume communications can be computerized letting dispatchers & accounts receivables staff more time to concentrate on more productive tasks and give clients with improved customer service. The main benefit of EDI is that it prevents a dispatcher from having to manually put info into the dispatch operational & billing system. This upshots in saving money and time while eradicating any expensive data entry blunders. The other benefit is that transportation firms that are EDI compliant can connect seamlessly & electronically with all parties in the supply chain process.
How EDI works for trucking?
The basic principle is that a trucking firm can make use of their transportation management system to send documents electronically back and forth with customers & supply chain partners. The carrier EDI provider will take a processed documents and electronically map that document to their customer’s software so that they get the document automatically. There’s no email, no paperwork, and no manual data entry.
The future of EDI in transportation:
As with all things associated to technology, the times are constantly changing & innovation is taking place at a quick pace. Several carriers are now shifting to API for information trading. Though this technology has its pros, but the need to move this new technology isn’t as essential as some firms may have you believe. Trucking EDI software is still an excellent tool for many trucking firms and will carry to be so for a long time.
EDI solutions decrease manual data entry & clerical mistakes, improve compliance, and sped up each trading partner’s access to info. Start creating happier logistics partners by enhancing communications alongside supply chain performance, by incorporating EDI technology now!