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How to enrich the EDI flow in the retail sector?


EDI retail

One of the most important characteristics of the EDI world is the ease of processing information that’s shared once it’s collected. This is explained in part, thanks to the homogenization of information and the use of a standard format that allows information and documents to be exchanged. For example, in the retail sector, the regulatory system allows users to send a catalog of products, manage an order or process a payment notification or invoice.

Technological implantation in retail EDI

EDI is widely used in the distribution world and in comparison to other sectors, this sector has the greatest implantation of data interchange technology for managing commercial documents or sending data electronically. The reason is that companies that use retail EDI manage a large number of commercial transactions, which are a major part of businesses and companies where the public generally goes.

Supermarkets and shopping malls are just some of the businesses that collaborate to sell and move large quantities of stock. In practice, this means there’s a high volume of operations that add to the interchange of B2B processes (stock management, type of articles, order processing, shipments to suppliers, etc.) in the supply chain. The usual flow of EDI between distributors and suppliers like orders and invoicing is not enough for multinational companies. Why not take advantage of it to the maximum? Make EDI profitable to optimize business.

There are other types of messages from lesser-known chains such as PRICAT, DESADV, REMADV, RECADV or RETANN, among others, which have the advantage of optimizing and making communications more efficient between distributors and suppliers. What’s more is that these EDI messages offer great benefits to both sides of the B2B chain. Once an EDI solution has been implemented, it’s easier to incorporate messages and take advantage of cost reductions thanks to greater efficiency and security in the automation and integration of processes such as receiving orders as well as operations (sending an invoice, payment notifications, or the reception of an order or a catalog of products, etc.).

What other EDI messages enrich the flow of communications?

DESADV: this EDI message is also known by the name of ASN, two acronyms that refer to Advanced Shipped Notice and Dispatch Advice. They refer to dispatch notice and shipping notice respectively. This EDI solution has great advantages for distributors and providers. For example, DESADV allows users to verify the merchandise sent by the supplier and to know all the details of the order.

At the same time, the anticipation of the shipping notice allows for broad traceability, facilitating loading and unloading tasks, and includes valuable information such as packing numbers, product expiration dates or the configuration of pallet products. In short, thanks to the use of DESADV, all operations are automated and delivery management is improved due to streamlining receptions and shipping processes.

As previously mentioned, there is a need to manage stocks and the large number of company products dedicated to retail EDI. Thanks to PRICAT, any manufacturer can inform its suppliers about its catalog of products in real time in addition to reporting data such as characteristics, references, logistical details, etc.

REMADV is an EDI document that a company issues to its suppliers to notify them of a payment document or an invoice request. In short, REMAV (Remittance Advice Message) is a type of payment notice that gives information about a payment, how much money will be paid and best of all when the money will be paid.

As with the EDI DESADV message, the RECADV document is the most widely known and used. Basically, this message is utilized in the EDI distribution sector to confirm to manufacturers when an order has arrived. This reduces expenses by avoiding rejections when paying invoices.

ORDERS RESPONSEThe Order Response message provides the ability for a supplier to respond to an order previously sent by the buyer.

Finally, there are other EDI messages such as RETANN and RETINS that improve communication between the manufacturer and the supplier by reporting any differences and any problems with the orders or merchandise sent. RETANN means announcement of returns and is translated as a return notice. Something similar happens with the EDI retail RETINS (Instruction for returns) message or return shipping.

In short, the use of EDI messages improve supply chain communications, automate processes and reduce operational errors by reporting valuable data such as the traceability of goods, an invoice payment and a delivery notice. In summary, EDI tools are essential for B2B operations, especially in retail EDI.

Contact us to learn how to optimize your EDI solution and enrich commercial communications with all of your suppliers.

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