Reading about the benefits of using EDI provider can bring to an organization is not enough without some examples of how it applies to existing businesses. Here are some real world usage examples of EDI in operation in various sectors.
In the transportation sector, EDI translates manifests, consignments and final status messages between the two parties. For example:
The manufacturer wants its product delivered to all agents and distributors. The system sends a pickup request to its logistics partner. The system at the logistics firm receives the pickup request and automatically creates a consignment note in the transport management system. Drivers pick up the product at the designated time. Scanning a barcode on the product updates the system that the pickup is complete. When the driver delivers the goods, they scan the barcode, and the system sends a delivery update to the manufacturer. The manufacturer sees real-time updates using the web-based EDI system.
In this example, we look at how a retail operations orders and receives new stock of a product from a supplier. As the retail outfit runs low on a product, it triggers a re-order level alert, and a message is sent automatically to the warehouse. The transportation company gets the request and then sends updates to the system when it picks up the items, when the items are on the way and when it completes the delivery.
In the above examples, the only part missing is the implementation of billing and payment into the system.