Why EDI is essential for drop shipping logistics

Blog provided by ACT Data Services, Inc. 1-800-ACT-DATA

Today, many eCommerce businesses have chosen drop shipping as a way to bolster their order count. Though drop shipping can be a viable form of order fulfillment for many eCommerce companies, there are challenges it poses for supply chain management that require some new solutions for shipping logistics.

One of the most difficult parts of drop shipping is that you have to rely completely on your supplier to provide products to sell to your customers. This requires strong coordination and communication to manage effectively. Drop shipping companies may have difficulties facilitating the transfer of information from their customers to their suppliers. And when these difficulties persist, they could result in dissatisfied customers.

This is where EDI comes in. Through electronic data interchange, EDI providers such as ACT Data can conveniently store customers’ order information in their data cloud and seamlessly convert that information into a form compatible with your suppliers’ data systems. This allows them to convey order information instantaneously, making communication between customers and suppliers quicker and more accurate.

Furthermore, a good EDI provider won’t just make your communications smoother and more seamless. They’ll also provide logistics to help you standardize your orders, inventory, and tracking from all of your vendors. They’ll keep all of your data updated and allow you to scale your data whenever you need to add new vendors.

ACT Data has been one of the most trusted names in the field of EDI for more than three decades. If you need help with your drop shipping logistics, contact them today to see why brands such as Amazon, eBay, and Wal-Mart have trusted their services.