EDI benefits to the supply chain

In a decentralized and global scenario, exports and imports have become the major drivers of sales and growth for thousands of companies.

Global markets are powered by products and services made outside of their territory.It is thanks to the development of communications and logistics that goods produced thousands of kilometers away can be competitive with other products in the country.For this reason, any outsourcing strategy must consider a comprehensive planning of the supply chain and the logistics phase.

For consumer goods such as food or medicine, the temperature control factor is an element that increases supply chain and logistical demands.It is critical that the proper temperature is maintained throughout the chain until it reaches the point of sale.Any break in the cold chain would be detrimental to the product, trigger losses and, in the worst case, pose a risk to the health of the consumer.

There are determining factors in the logistics operation that can become real challenges if you do not have the proper planning and means:

Full synchronization between manufacturer and distributor.
High degree of dialogue between all agents in the logistics chain (manufacturer, distributor, transport, storage, Customs, Border Inspection Post…).

Merchandise traceability.
Thermal traceability, that is, having real-time information on the temperature from its preparation to its delivery at destination. For efficient communication the success of any export or import depends on achieving immediate, safe and efficient communications between the origin and the final destination of the product, but also between the producer and the distributor, that is, not only physical communications, but also information and data that favor the perfect alignment of all the links of the supply chain.

EDI technology is today indispensable in the logistics sector and the supply chain.
It makes the relations between the actors of the chain more efficient. The electronic exchange of data facilitates the sending and receiving of all types of documents in commercial transactions, in a safe, fast and fluid way and with full integration into the internal management systems of customers, suppliers and any partner involved in the production processes. , commercial, as well as administration.

The more members of the logistics chain use EDI technology, the more controlled the entire process will be. An exporting company must work with EDI solutions and it is convenient to have partners that also use it to enhance the advantages of this system.

EDI technology is especially necessary in overseas exports for logistics operators that must deal with shipping ports, customs, etc.

EDI benefits to the supply chain.
For each link in the logistics chain, the application of EDI brings significant concrete benefits:

EDI solutions allow you to automate internal manual processes such as the generation, sending and recording of any electronic transaction, interacting with your ERP, so that orders, dispatch notices, electronic invoices, etc., are processed without human intervention.

Standardize the messages.
The exchange of electronic information via EDI uses a standardized language, shared by sender and receiver, which structures the messages. Thanks to the use of a common language, the different information systems interact with each other, overcoming language and technical barriers.

EDI systems improve aspects as important as product traceability.
Through electronic data exchange solutions, the load and its traceability are monitored, so that the person responsible for the merchandise knows its status at all times. You can validate the information that comes to you and solve possible incidents quickly.

It provides real-time information that can avoid delays in the processes of dispatch and reception of products, transport to the storage location…For the logistics operator, it integrates the entire operation, whether by sea, land or air, in the same communication flow.

In dealings with Customs, PIF, etc., it speeds up and provides security for administrative procedures.

For the distributor, it helps in the planning of the replenishment chain. In the case of perishable products, this management is essential since the expiration periods are shorter and therefore the stock must be well controlled.

This technology is based on the electronic exchange of data between distributor, supplier and logistics operator through EDI tools; the analysis and processing of information and the automatic generation of orders, dispatch notices and purchase orders with the aim of responding to the forecast demand through the efficient delivery of goods at the required time.

In short, an efficient logistics process is essential to supply the distribution points according to demand and, consequently, offer a quality service to the final consumer.

How Yfos Cloud ERP Can Help
Yfos Cloud ERP can help with resources, experience with similar projects, and business process improvement expertise in many areas.

If you need any advice or quotation please contact with us:

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More information: info@yfos.com.mx
Phone: + 52 (1) 8118656617