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:
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.
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.
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.
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