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Electronic Data Interchange (EDI) for the Logistics

   

Logistics Series

   
 

 

Electronic Data Interchange (EDI) is the fastest, easiest, and most productive way to conduct business with the transportation, warehousing and logistics industry. Computer-to-computer communication eliminates the need to fax documents and provides a complete and comprehensive audit. Traditionally, in the Public Warehousing industry, their have been two functions provided:

  • Product Storage and Replenishment

  • Product Processing and Transfer

The process is very simple. The warehouse works as a "middle man" in the logistics process. A manufacturer produces product and ships the product to the public warehouse. The public warehouse stores the product until the manufacturer requests that they ship it to another company.

Public Warehouses have heavily invested in EDI systems to automate the information flow to support these basic functions. While these interfaces were excellent for transacting business with large customers, they usually failed to include the small and medium sized business customer, who could not make the investment necessary to take advantage of EDI. In addition, these interfaces limited their focus to the Replenishment and Transfer Cycle. The following are the processes which were not automated with the advent of EDI in the warehousing industry:

  • Invoice Management (Invoices for warehousing services)

  • Item Maintenance

  • Merchandise Management

  • In addition, as public warehouses change their market niche from simply “product” processors to “information” processors, they are striving to use the electronic transfer of business information to provide additional services to their clients. For example, forward thinking public warehouses are looking to provide:

     

    Sales Order Processing for their Clients

    Presently, inventory is being managed by the retailer or by the manufacturer. The newest trend is to have public warehouses to manage the inventory for the manufacturer. The process would have:

  • Retailers to send Product Activity Data to the warehouse.

  • Warehouses utilizing the Retailers product activity data plus its own Vendor Managed Inventory software to suggest Purchase Orders to retailers.

  • Retailers to approve the “suggested” Purchase Order (PO) and send the information back to the warehouse.

  • The approved Purchase Order would be used by the warehouse to create a Warehouse Transfer (which may also create an Advanced Shipment Notification if required).

  • A copy of the Approved Purchase Order would be sent to the Manufacturer who will use this information to Invoice the Retailer.

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    Logistics Management for their Clients

    Another trend in public warehousing is to have the warehouse manage the logistics process. An increasing popular portion of the logistics process being taken over by public warehouses is the handling of Merchandise Returns from Retailers. For example the process would have:

  • Retailers to send Return Merchandise Requests to the Warehouse via EDI.

  • Warehouses receive requests and to provide a Return Merchandise Authorization number to send back to the retailer authorizing the return.

  • Retailers would send the goods back with a Debit Note attached to the warehouse and a copy of the Debit Note to the manufacturer.

  • The warehouse would receive and inform the manufacturer of the receipt of the goods.

  • Upon approval of the Return, the manufacturer would send a Credit Note to the Retailer and a document specifying to the warehouse how to dispose of the returned product.

  • The key to automating warehouse processes is to be able to have a solution that provides all parties the information that they need to do their job. This is where forward thinking public warehouses are looking to re-invest in EDI in solutions such as SoftCare’s TradeLink that can effectively manage their existing and new business models.

     

    Continue to: EDI in Warehousing and Logistics Processing

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Customer Case Study

    Tennessee Commercial Warehouse (TCW) ranked among the largest intermodal operators in the United States since 1948, had to find an EDI system to send and receive business documents from its existing in-house developed system for tracking and billing for domestic and international transportation to/from its largest clients. After extensive searching TCW choose SoftCare’s TradeLink Corporate EDI Management System to manage the EDI process.

    In 1995, they were looking for ways to reduce transportation management costs in the highly competitive inter-modal services business and service their largest clients by implementing EDI. They wanted an EDI application that could integrate to their existing BBX based tracking and billing system, reduce their internal business processing costs and increase transportation and logistics processing efficiency. This is why they turned to SoftCare.

    TCW chose SoftCare and its TradeLink EDI Management System because they liked their approach to combining, software, consulting and services to provide an all-encompassing solution to implementing EDI and that the product provided a close link between their in-house systems written in BBX. In addition, TradeLink’s advanced features such as “partner” specific mapping allowed TCW to quickly integrate EDI Transportation documents to/from its internal Tracking and Billing systems.

    Read more...

    For more information about SoftCare, TradeLink EDI Management System,
    and the SoftCare Solutions Group please contact us at:

    Web: www.softcare.com

    Tel : 1-888-SoftCare   (604) 983-8083

    email: info@softcare.com

     

     

     
     

     

    EDI in Warehousing and Logistics Processing
     

    Customer Case Studies

        Tennessee Commercial Warehouse

        Bartle & Gibson

     

    SoftCare EC Solutions for Logistics

        Narrated presentation

        Introduction to EDI

     

     
     
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