Whether you're manufacturing electronics, managing a logistics network, or running a retail business, exchanging information quickly and accurately with your partners is essential.
Electronic Data Interchange (EDI) is the technology that underpins modern B2B trading communication. Despite the technology being around for some 50 years, 70% of B2B transactions are still handled by EDI. And the market continues to grow by over 11% per year.
But here's the thing: while EDI offers a universal framework for B2B communication, it’s still flexible enough to accommodate different requirements—and workflows often vary by industry.
In fact, the way businesses leverage EDI can look quite different from one sector to the next.
In the following sections, we'll explore how EDI is tailored to meet specific needs and overcome the unique challenges of manufacturing, logistics, and retail industries.
The manufacturing sector was one of the early adopters of EDI technology, driven by the need to streamline complex supply chains and support just-in-time (JIT) production methods.
This is an industry where supply chain costs eat into profits by about 13%, so strategies like using EDI to streamline processes are welcome.
From raw material procurement to final product delivery, EDI helps ensure that information flows smoothly, allowing manufacturers to respond to changes in demand while maintaining precision.
Here are three manufacturing-specific EDI considerations, though this will vary widely from business to business:
Several important transaction sets are often used in manufacturing, primarily relating to product planning and shipping. Two key examples include:
This transaction set is the lifeblood of many manufacturing operations, especially in industries that rely on JIT production. It allows manufacturers to communicate detailed production schedules to their suppliers, including:
While similar to the 830, the 862 is more immediate and specific. It's often used for short-term planning and can trigger JIT deliveries. Key components include:
The logistics industry faces unique challenges that make EDI particularly valuable.
These include the need for real-time tracking of shipments, coordination between multiple parties (shippers, carriers, customs, receivers), and the management of complex documentation for international trade.
There are many EDI transaction sets designed specifically to handle these processes and workflows.
Key factors to consider when implementing EDI in logistics include:
Logistics EDI is unique, with numerous transaction sets covering different logistical processes and workflows. Here are four key examples:
This transaction set is used by shippers or third-party logistics providers (3PLs) to offer a shipment to a carrier. It includes:
This message provides real-time updates on the status of a shipment. It can include:
This freight bill and invoice combination is commonly used in the trucking industry. It typically includes:
While not as commonly used as some other transaction sets, the EDI 315 is crucial for international ocean freight logistics. It provides:
Retail was one of the earliest adopters of EDI technology, driven by the need to manage vast networks of suppliers, distribution centers, and stores.
Today, EDI is deeply embedded in retail operations, facilitating everything from inventory management and order processing to financial transactions and sales reporting.
Major retailers such as Amazon, Walmart, and Target require businesses that trade with them to follow their own EDI rules. These rules contain specific requirements like responding to messages within certain timeframes.
When implementing EDI in the logistics sector, three critical aspects deserve special attention:
One transaction set frequently used in retail is the EDI 880 Grocery Products Invoice.
This specialized invoice is used in the grocery industry and can handle complex pricing scenarios, including:
Key Considerations:
Key Transaction Sets:
Key Considerations:
Key Transaction Sets:
Key Considerations:
Key Transaction Set:
EDI meets each industry’s unique needs
As we've seen, while EDI provides a standardized framework for electronic communication, its implementation and use can vary across different industries and even between individual trading partners.
This inherent flexibility allows EDI to meet the unique needs of various sectors while still providing the benefits of standardized electronic communication.
Whether you're in manufacturing, logistics, or retail, embracing EDI and tailoring it to your industry's unique needs can provide a significant competitive advantage.
As a leading provider of EDI solutions with decades of deep industry experience, Epicor has the expertise and tools to help your business optimize its EDI processes and grow market share.
From intuitive EDI software to expert support, Epicor can be your partner in leveraging EDI's many uses and benefits, no matter what industry you operate in.
Learn more about Epicor EDI solutions.
