EDI tends to impact every piece in any logistics operation, whether it is inventory management and order fulfillment or billing and vendor communication. Moreover, EDI is also used by Third Party Logistics (3PL) that communicate between the warehouse and supplier. These transactions are structured documents that contain data segments and elements based on agreed standards which are then traded all over the world.
These warehouse documents are used by both suppliers and 3PLs to communicate the status of shipments between various sites such as the manufacturing plant and offsite warehouses. These document sets are extremely important to suppliers as they know how much inventory they have on hand and in which warehouse. According to Act Data Services, Inc. 1-800-ACT-DATA, there is no doubt that EDI turns your warehouse into a well-oiled, optimized machine.
If your 3PL is operating a warehouse without EDI, you are at a great disadvantage. With the rise of e-commerce and latest technology, 3PLs need to work 24/7 in order to keep up with their demand. However, due to labor and other fixed costs associated with your warehouse, the cost of a 24-hour operation can turn out to be quite expensive.
Therefore, it would not be wrong to indicate that EDI warehouse not only allows you to become more efficient, but it will also help to eliminate most of the errors that occur when humans are involved in every step of a business process. Therefore, having an EDI capable warehouse is essential in today’s modern world.