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EDI Shipping and Logistics: How it Works

Professional completing business order through EDI shipping processes from an edi capable online store

Fast and reliable shipping has never been more critical for the transportation industry. With more consumers and businesses operating online, how quickly merchandise moves from manufacturers to distribution centers to consumers can mean the difference between a sale and no sale. Recent studies found that two of the top reasons why buyers abandon their online purchases are delivery time and shipping costs. Today, the new standard for exchanging data between companies is to use a Electronic Data Interchange (EDI) system. These systems enables companies to automate their processes while saving time and resources. It's much faster to generate, send and receive purchase orders, invoices and bills of lading through an EDI. No one needs to wait while data is entered manually and the necessary documents are prepared in order to send out shipments.


What Is EDI Capable?

EDI capable organizations have invested in EDI software to streamline business communications. Logistics companies that invest in EDI solutions can provide the electronic exchange of data on behalf of their customers. Small to midsize companies can enjoy the same digital capabilities as large corporations without the cost of an in-house EDI solution. 


Why Use EDI Shipping?

Electronic transmission of shipping documents is part of any company's digital transformation. Working with EDI-capable logistics companies means fewer errors, faster processing, and lower costs. It translates into meeting customer expectations for fast delivery.


How Does EDI Use for Trucking Save Time and Money?

Fewer Errors

EDI eliminates manual data entry. Instead, information moves from computer to computer. As a result, small errors that might occur as multiple employees fill out paperwork, like setting the address for 4562 Applegate Drive instead of 4652 Applegate Drive, are avoided. In this example, reversing two digits means delayed delivery of merchandise needed to fulfill an order, but EDI system's automation ensures a reduction in error.


Faster Processing

Moving data electronically happens at internet speed. Information arrives in minutes, not hours. In today's environment, seconds matter. Almost 90% of Americans will move to a competitor's site when a web page takes too long to load. At least 50% will abandon a cart if the checkout process takes too long. If consumers are unwilling to wait less than a minute to make a purchase, they are certainly not going to wait weeks for delivery. With an EDI system, there's no waiting for a human to generate paperwork during business hours. Documents aren't attached to an email that must be opened. A process that may have taken hours, or even days, is reduced to minutes with digital technology.


Lower Costs

Logistics companies with EDI shipping capabilities can maximize their transportation resources to expedite delivery and reduce costs. For example, an EDI-transmitted shipping request allows a company to place the freight on a truck the same day it received the order, lowering the overall cost of the shipment. Not only does this reduce the shipping costs, but it also reduces transport times.


Increased Efficiency for Employees

Without an EDI system, it is really difficult to handle high volume freight and shipping without automation. For example, say your company purchase ten pallets of storage containers from a manufacturer. An employee of the retailer must manually generate a purchase order and email it back to the manufacturer. Once received, the manufacturer produces a commercial invoice and a bill of lading to accompany the shipment. Once the paperwork is complete, logistics staff must manually enter in the order and assign shipment on the schedule. Once the load is assigned, the pallets are loaded onto a truck and shipped to the retailer's warehouse or distribution center. Once the shipment arrives, an employee for the retailer must email a receipt to the logistics company where an employee manually generates an invoice to pay for service. This back and forth communication, without EDI systems that can talk to each other, takes up employee time and company resources. There is also more room for error and requires more effort to coordinate and keep track of shipments.


How Can Partnering with a Logistics Company Help with EDI Shipping?

Electronic transmission of shipping documents is part of any company's digital transformation. Working with EDI-capable logistics companies means fewer errors, faster processing, and lower costs. It translates into meeting customer expectations for fast delivery.


Why Veltri Logistics?

Veltri Logistics is a family-owned logistics company specializing in regional trucking in Pennsylvania, New Jersey, and Delaware. Our EDI-capable systems ensure your freight moves as quickly as possible with minimal disruption. Given the accelerated world of commerce, consider partnering with a company that understands why seconds matter and works to provide you with a competitive advantage in an ever-changing industry.


Contact us today for more information and resources about EDI shipping.





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