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ORDERS and ORDRSP: The main EDIFACT messages in the supply chain management

This post was updated to reflect current trends and information.

Receiving and processing EDI purchase orders is the most common transaction faced by small businesses. This electronic business document is used to place a commercial order for goods or services by a buyer or business partner.
EDIFACT ORDERS

It’s still possible to use phone, email, or fax between two small businesses, but if you want to collaborate with a large retailer, distributor, or manufacturer, there is a high probability that you must be EDI compatible to receive orders from your B2B partners, in addition to other potential EDI documents or transactions.

What is EDIFACT ORDERS?

ORDERS (Purchase Order) is a type of EDIFACT message that contains requests for the supply of goods or services.

In EDI ANSI ASC X12 standard which is widely used in North America, the ORDERS is referred to as EDI 850 Purchase Order.

Large companies, working with small contractors demand mandatory use of EDI. Requirements for EDI compatibility is specified in contracts or in partners selection criteria.

High competition forces the business to comply, and start exchanging electronic data quickly and accurately, spending minimal time and resources on this business process. Thus, small enterprises must comply with the imposed conditions, in order not to lose a source of profitable purchases.

EDIFACT ORDERS message content

The most important main information contained in an EDIFACT ORDERS message:
  • Order number
  • Required date
  • Delivery date
  • Reference to supply contract number
  • Price and qualifier (including VAT and other taxes)
  • Identifiers of the consignee and sender, delivery location, customer, carrier, recipient
  • Information about the contents of the order (barcodes, quantity, item name, etc.).

EDIFACT ORDERS Processing

After signing the contract, the buyer uses ORDERS to send the seller a list and quantity of goods ordered.

Typically, a buyer creates the order in his ERP system (the most popular are SAP ERP, Microsoft Dynamics, Oracle JD Edwards EnterpriseOne). The created Purchase Order is instantly converted into an EDIFACT ORDERS message which is immediately sent to the seller. The seller must receive the EDIFACT message and quickly process it. He should transmit a Purchase Order Response (ORDRSP) in response to the Purchase Order received.

EDIFACT and ERP/CRM integration

To save time and money by processing the vast amount of information received from business partners, most companies (both retailers and suppliers) choose to integrate their EDI / EDIFACT messages into their ERP systems. Basically, with integration, they connect the received EDI messages and push it directly to their ERP software, through Integration Connectors designed specifically to synchronize and integrate into their ERP systems.

For example, using Magic xpi Integration Platform a company can connect a variety of heterogenous business systems such as ERP, CRM, finance, etc. by implementing out-of-the-box certified and optimized connectors.

You can find useful information on EDI integration with ERP Systems in the following articles:

How to make EDIFACT ordering even easier
EDIFACT ERP integration

As the number of outgoing or incoming orders increase, companies try to optimize the exchange of orders. In case the number of your orders exceeds a couple of hundreds per month, it’s worth thinking about integrating the flow of orders directly into your business software solution and save your company the time and money associated with human errors, delays to deliver, and increase efficiency.

The process of Order creation can be fully automated; it will not require human intervention. To do this first it is necessary to integrate your business system with EDI.

Related article:

Usually, after starting to use ORDERS message, the buyer will most likely request to receive replies to his orders, which means connecting another type of EDI message – ORDRSP. In addition, he can ask you for the dispatch advice (DESADV), and he can send you the delivery advice message. (RECADV).

What is ORDRSP and what are the benefits of using this EDIFACT message

ORDRSP (Order Response) is a type of EDIFACT message in which the supplier confirms or rejects the delivery of goods to the buyer. Using ORDRSP, the supplier can propose amendments, notify of a complete or partial delivery or confirm the entire delivery, before even processing the delivery.

Using UN/EDIFACT ORDRSP improves the logistics chain: the parties save on transportation, reduce returns due to incorrect deliveries of merchandise, increase the accuracy of delivery of the right products.

Through ORDRSP, the supplier can notify the buyer of the lack of certain products, thus avoiding disruption of supplies and maintaining a loyal business relationship. Customer, having this information, can order a similar product from the presented assortment or place an order from another supplier.

The buyer can always understand whether the supplier will deliver the goods on time, or not. He sees preliminary price confirmation and quantity of products, predicts the state of stock based on ORDRSP, and the supplier can automatically book goods for delivery in his warehouse when processing a Purchase Order Response.

What does ORDRSP contain?

ORDRSP has a direct relationship with ORDERS and are complimentary to each other. ORDRSP consists of:
  • Order number
  • GLN numbers of the buyer and seller
  • Order confirmation number
  • Date of planned delivery of goods
  • Scheduled time
  • Item No
  • Quantity approved (To Ship)
  • Price approved
  • Reason of rejection (when parameters are not matching between Order and supplier)

EDI/EDIFACT integration

In EDI/EDIFACT documents exchange, the EDI provider plays a key role. He is the one who ensures the conversion and integrity of message formats and tracking data transfers. For over 21 years now, our company EDI2XML has been successfully helping companies of all sizes switch to Electronic Data Interchange. We help speed up working with orders, shipments, acceptance, inventory of goods and reduce the risks of human errors. We have no hidden fees or confusing rates.

Contact us today for more information and a free EDI consultation.

The most used EDI messages in the supply chain management

This post was updated to reflect current trends and information.

In this article, we want to talk about the top EDI messages commonly used by trading partners in supply chain management. We will explain the purpose of the EDI messages and their benefits.

What is EDI?

The acronym of EDI is Electronic Data Interchange. The main objective of EDI is to replace the exchange of paper-based business documents.

EDI is the exchange of structured business documents used in B2B. The implementation of EDI is almost limitless. EDI is present in every commercial activity:
– supply chain management
– e-commerce
– Warehousing
– Insurance
– Banking and finance
Electronic data interchange (EDI) is helping businesses to automate specific business processes, as well as to cover an entire cycle of logistics.

What does EDI mean in logistics?

In short terms, an EDI is a flow where one business partner can create digital and electronic “business documents”, compliant to a specific standard (i.e. X12, EDIFACT, Tradacom, RosettaNet,) and transfer to the second party in a secured telecommunication channel.

Useful: eBook:  EDI – Key Information You Need to Know

The most commonly used set of EDI messages

Top EDI messages

Following is the list of o the most commonly used EDI transaction sets used in today’s business space, from supply chain management to e-commerce, you will find the following documents as the basics for EDI exchange:

– EDI 846 Inventory status
– EDI 850 Purchase Order
– EDI 855 Purchase Order Acknowledgement
– EDI 856 Ship Notice/manifest (ASN)
– EDI 860 P/O Change
– EDI 810 Invoice

The above EDI messages, called “must-have” because they are necessary to automate the most important trading cycle in the supply chain management, eCommerce, and Drop-ship space.

Many companies do not limit themselves only on the above EDI messages, they can decide to leverage other transactions and business documents to improve their supply chain effectiveness; as an example, they can request to add the 753, 754, and other documents related to pickup and delivery…

Useful: EDI Transaction Types – Complete List of EDI Transactions

EDI messages types

EDI 846 Inventory status

Most trading partners in the supply chain and eCommerce space, request that their suppliers update them with their inventory status by sending the EDI 846 document. You can check the details about this document in this article.

EDI 850 Purchase Order

Often, this is the first type of EDI message that companies such as retail chains, manufacturers, warehouses, or 3PL-providers to exchange when they switch to EDI.

EDI 850 contains:

  • Order number
  • Required date and time of delivery
  • Reference to the contract or contract number
  • Price
  • Sender and customer information, the place of delivery
  • Information on the contents of the order (bar codes, quantity, the name of the goods, multiplicity of packaging).

With the EDI 850, the product ordering process goes faster and becomes cheaper as the number of people involved in the process is reduced. Thanks to the fast and guaranteed transfer of information about the order, the supplier improves the reliability of the deliveries.

EDI 855 Purchase Order Acknowledgement

EDI 855 response to the Purchase Order is a “couple” message for EDI 850. The supplier sends EDI 855 to the buyer in accordance with the order value or suggesting to make changes regarding order quantities. This helps to avoid disruption in the supply chain.

Useful reading: What is EDI 855 Purchase Order Acknowledgment?

EDI 856 Ship Notice/manifest or ASN

ASN is a pair of EDI 861 Receiving Advice.

These notifications are exchanged between the business partners at the stage of shipment and receipt of the goods.

The supplier sends ASN immediately after the shipment. This EDI message helps to simplify and speed up the process of acceptance of goods. EDI 856 Ship Notice/manifest contains detail shipment information:

  • Shipment information (bill of lading number, ship to, ship from, etc.)
  • Unit load information about a physical shipping item.
  • Order information such as purchase order number, buying place, division number, etc.
  • Tare information about the pallets.
  • Pack information about the shipping package (cartons, racks, bags, etc.,)
  • Item information about the shipped goods, such as SKU identification, quantity shipped, etc.

Companies that have implemented ASN significantly increase the speed of receiving goods and entering data into the business system – with EDI 856 you do not need to drive numbers manually from the invoices. ASN information can go directly to the business system.

For the big trading retailers, this type of EDI message is a vital necessity. Advance notification of the goods delivery helps to prepare for its acceptance. Even before the supplier’s truck arrives, the retailers already have a list of the goods sent.

EDI 860 Buyer triggered P/O change

EDI 860 is a transaction sent to the supplier advising him about a change in the Purchase order sent earlier. The change can be to increase/decrease/delete quantities on an order or to change dates.

EDI 810 Invoice

EDI 810 Invoice is an electronic invoice transaction sent by the supplier to the buyer.

Learn more about  x12 810 Invoice in this article: What is an ANSI ASC X12 EDI 810 invoice?

Becoming EDI Compliant

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Contact us today for more information and for pricing.

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Related Posts:

What is EDI 846 document?

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

What Are the Differences Between ANSI X12 and UN/EDIFACT

What is Advanced Ship Notice (ASN) 856 Transaction Set?

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This post was updated to reflect current trends and information.

Are you looking to streamline your supply chain and improve shipping efficiency? Look no further than EDI 856, the ultimate electronic document for advanced shipping notifications (ASN). In this comprehensive article, we will walk you through everything you need to know about EDI 856 and how it can optimize your logistics operations.

What is EDI 856 (ASN)?

An Advanced Ship Notice (ASN) is an X12 electronic document EDI (electronic data interchange).

In different EDI standards, this electronic document can have different names, for example, in ANSI standard this electronic document is called ASN or “Advanced Ship Notice” or 856 transaction. In EDIFACT the same document is DESADV “Dispatch Advice”. Nevertheless, no matter how this document is called: Dispatch Advice, 856 Ship Notice, Advanced Ship Notice, Advance Shipping Notice, 856 transaction set, 856 Ship Notice/Manifest, ASN, ASN message, EDI 856, ANSI x12 856,  it has the same mission and has the same business meaning.

The EDI 856 document is essential for streamlining the supply chain process because it provides real-time visibility and transparency throughout the entire logistics journey. An 856 Ship Notice message is intended to simplify and speed up the process of receiving goods, detailed information about the cargo, transfer of information about the shipment, and tracking the delivery. This information is used for receiving and inventory control purposes.

By sharing this information electronically, suppliers and retailers can plan and track shipments more efficiently, reducing the risk of delays, errors, and unnecessary costs.

856 Ship Notice/Manifest does not physically accompany a shipment but is used to inform the recipient in advance, about the contents of the shipment.

Who Uses The Advanced Shipping Notice (ASN)?

The EDI 856 Advanced Shipping Notice is widely used in the supply chain by retailers, manufacturers, wholesalers, third-party logistics providers (3PLs), and even in Drop-ship fulfillment and e-commerce. It is a key document for tracking and managing shipments, providing detailed information about the contents and expected delivery of goods.

EDI 856 is especially important in traditional retail replenishment and drop-ship fulfillment scenarios, where it helps streamline inventory management and order processing. 

By delivering advance shipment details, the ASN helps businesses optimize their operations, improve warehouse management, and reduce delays in receiving goods.

 

 

For more information about Drop-Ship, you can read our blog: 4 Challenges of EDI and Drop-Ship in eCommerce

Basically, the sender of Advanced Ship Notice is the warehouse, raw materials supplier, and carriers who are responsible for specifying and communicating the contents of a shipment.

The 856 Ship Notice/Manifest may be the most complicated document to implement because different trading partners can customize their requirements for EDI 856. In addition, ASN has a multitudes level of information and a great volume of data.

EDI 856 Hierarchical Levels of Information in the Ship Notice/Manifest

A key feature of the Ship Notice/Manifest is the hierarchical level of data. The supplier can describe the details of a shipment due to a multitude of levels of data. Each level in the Ship Notice/Manifest describes the related details about a physical shipment. Usually, in the retail industry there are six defined levels in an EDI 856 (ASN):

  • Shipment – Information about shipment moving from a supplier (origin place) to a receiving location (Client), such as a bill of lading number, ship to, ship from, etc. There is only one shipment level in each transaction set.
  • Unit load – Information about a physical shipping item marked with a Serial Shipping Container Code and, consists of transport packages marked for multiple final destinations.
  • Order – Information related to the client’s original Purchase Order (EDI 850) such as purchase order number, buying place, division number, etc.
  • Tare – Information about the pallets. This level may be skipped if there are no identifiable pallets.
  • Pack – Information about the shipping package (cartons, racks, bags, etc.,) such as carton serial number. If there are no identifiable packs, this level may be skipped.
  • Item – Information about the shipped goods, such as SKU identification, quantity shipped, etc.

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EDI 856: Understanding the Components of a Document

An EDI 856 document, also known as the Advanced Shipping Notice (ASN), is a detailed electronic record that conveys essential information about a shipment. Key components typically include:

  • Header Information: This section provides general shipment details, including the purchase order number, ship-to address, and expected delivery date. It sets the context for the entire shipment.
  • Line Item Details: This section includes specific information about each item being shipped, such as the product code, description, quantity, and unit of measure. It helps recipients identify and verify the contents of the shipment.
  • Packaging Information: Here, you’ll find details about the shipment’s packaging, including the number of pallets, cases, or individual units. This information is crucial for efficient handling and storage.
  • Carrier and Tracking Information: This part provides details about the carrier responsible for the shipment, including tracking numbers and shipping labels. It allows for tracking and monitoring the shipment’s progress.
  • Additional Details: Depending on industry requirements or business needs, the EDI 856 document may include additional information such as special handling instructions, lot numbers, or expiration dates. This ensures that all relevant details are communicated.

Understanding these components is crucial for businesses to ensure accurate and efficient data exchange with supply chain partners. Familiarity with the various fields helps streamline shipping processes, reduce errors, and enhance overall supply chain visibility.

Ship Notice/Manifest Business Flow

Below we give you a simple example of Business processes that cause the Ship Notice/Manifest.

The order process begins with an EDI 850 Purchase Order from the client. To confirm the receipt of a purchase order, the supplier generates a Purchase Order Acknowledgement or X12 855 transaction set. Then, the supplier has to start the order processing procedure.

When the order is ready for delivery, the supplier collects all pertinent data relative to the shipment. Using this information, the supplier creates a Ship Notice/Manifest. The supplier must generate the Ship Notice, and transmit it to the client, immediately upon closing the truck. The client needs to receive and integrate the data of ASN 856 into his business systems prior to the physical arrival of the merchandise.

EDI- 850 example

Advanced Shipping Notice (ASN) Example

These two examples of Advanced Shipping Notice (ASN) 856 below show the XML file and the same file that was converted to EDI.

These two examples below describe how an Advanced Shipping Notice (ASN) 856 transaction set looks like in xml format, and then displays the same information in X12 format after it has been converted to EDI by our EDI2XML translation and communication service.

EDI 856 ASN (xml) Example:

EDI 856 example

EDI 856 X12 Example File:

EDI-656- example-levels

The shipment level in the 856 EDI document refers to the level of detail provided about the shipment. This can include information such as the number of cartons or pallets in the shipment, the item numbers and quantities of the products being shipped, and other details about the shipment. The shipment level in the 856 EDI document may also include information about the carrier and transportation details associated with the shipment.

The order level in the 856 EDI document refers to the level of detail provided about the order that the shipment is fulfilling. This can include information such as the purchase order number, the customer’s order number, the date the order was placed, and other details about the order. The order level in the 856 EDI document may also include information about the items being shipped, including item numbers, quantities, and unit of measure. It also may include information about the shipping and delivery details, such as the requested delivery date, shipping address and shipping instructions.

The pack level in the 856 EDI document refers to the level of detail provided about the packaging of the items within the shipment. This can include information such as the number of items within each package, the type of packaging used, and the weight and dimensions of each package. The pack level in the 856 EDI document may also include information about the labeling of each package and any special instructions related to the packaging of the items. This level of information is important for the logistics and warehouse operations of the recipient of the shipment.

The item level in the 856 EDI document refers to the level of detail provided about the individual items within the shipment. This can include information such as the item number, the item description, the quantity being shipped, and the unit of measure. The item level in the 856 EDI document may also include information such as the item’s weight, dimensions, and packaging information. This level of information is critical for the logistics and warehouse operations of the recipient of the shipment. It also allows the recipient to match the received items with the purchase order and track inventory levels. This level of detail is important for the recipient to be able to process and receive the shipment accurately and efficiently.

What Are the Benefits of Implementing the Ship Notice/Manifest for the Supply Chain?

Implementing EDI 856 in your supply chain can unlock a wide range of benefits that can significantly improve your business operations and overall competitiveness. Some of the key advantages of adopting EDI 856 include:

  • Improved Inventory Management: With the detailed information provided in an EDI 856 document, businesses can better plan and manage their inventory levels, reducing the risk of stockouts or excess inventory.
  • Enhanced Shipping Efficiency: By automating the shipping process and eliminating manual data entry, EDI 856 can help businesses streamline their logistics operations, leading to faster delivery times and reduced shipping costs. Reduce off-loading time at receiving dock. Acceleration of goods acceptance, due to previously received information on the composition and structure (as packed) of the supply.
  • Increased Accuracy and Reliability: EDI 856 documents are transmitted electronically, which minimizes the risk of errors and inaccuracies that can occur with manual processes. This improved data accuracy helps to build trust and strengthen relationships with supply chain partners.
  • Better Visibility and Collaboration: The real-time information provided by EDI 856 documents allows businesses to track shipments more effectively and collaborate more closely with their suppliers and customers, enhancing overall supply chain visibility. The EDI 856 (ASN) connects with bar code labels on transported pallets, boxes, or cartons, so there is the possibility of using the RFID scanner and transport package sequence number (SSCC) when accepting goods.
  • Cost Savings: By automating the shipping process and reducing the need for manual intervention, EDI 856 can help businesses save on labor costs, paper expenses, and other administrative overhead associated with traditional shipping methods.
  • Improved Customer Satisfaction: With faster delivery times, better inventory management, and more reliable shipping information, businesses can improve their customer service and satisfaction levels, ultimately leading to increased loyalty and repeat business.

Implementing EDI 856 in your supply chain can be a transformative step, enabling your business to streamline operations, enhance collaboration, and gain a competitive edge in the market. By embracing this powerful EDI document, you can unlock new opportunities for growth and success in your supply chain management efforts.

Advantages of Implementation Advanced Ship Notice

The implementation of EDI 856, or the Advanced Shipping Notice, can significantly improve visibility and collaboration throughout the supply chain. By providing detailed, real-time information about shipments, this powerful EDI document enables better coordination and cooperation among all supply chain stakeholders.

  • Eliminates the need for paper-based communications
  • Optimization of the process of goods acceptance.
  • No data entry errors.
  • Reduce administrative costs by increasing the accuracy of forecasting orders.

Integrating EDI 856 with Other EDI Documents for Seamless Operations

To maximize the benefits of EDI 856 in your supply chain, it’s essential to integrate this Advanced Shipping Notice (ASN) with other key EDI documents. By enabling a seamless flow of data, businesses can increase operational efficiency, minimize manual intervention, and make more informed decisions.

EDI 810 (Invoice)

Integrating the EDI 856 with the EDI 810 Invoice allows for a more streamlined invoicing process. By automatically matching the shipment details in the EDI 856 with the corresponding invoice, companies can reduce discrepancies, accelerate payment processing, and improve financial management. This integration ensures that the details of what was shipped align with what is being billed.

EDI 940 (Warehouse Shipping Order)

Linking the EDI 856 with the EDI 940 Warehouse Shipping Order improves warehouse operations and inventory control. The EDI 856 provides the warehouse with specific details about the contents, quantities, and packaging of the shipment. This enables warehouses to better plan for receiving, allocate space, and expedite the fulfillment process.

EDI 945 (Warehouse Shipping Advice)

Integrating the EDI 856 with the EDI 945 Warehouse Shipping Advice improves coordination between suppliers, warehouses, and customers. The EDI 945 confirms the shipment details sent in the EDI 856, helping the receiving party prepare for incoming goods, facilitating smoother receiving processes, and reducing misunderstandings or delays.

EDI 997 (Functional Acknowledgment)

By linking EDI 856 with the EDI 997 Functional Acknowledgment, businesses can track and confirm the successful transmission of their ASNs. The EDI 997 serves as a receipt confirmation, ensuring that the EDI 856 has been successfully received by trading partners. This validation helps businesses monitor and improve the reliability of their EDI processes.

EDI 753 (Request for Routing Instructions)

Although EDI 753 (Request for Routing Instructions) is less commonly mentioned in ASN integration, it can be valuable in ensuring accurate shipping details. This document is used to request specific routing instructions from the buyer or consignee, often in transportation and logistics planning. When integrated with EDI 856, it can help ensure that the shipment follows the correct delivery path, aligning transportation and delivery instructions.

By integrating EDI 856 with these key EDI documents, businesses can create a more cohesive and efficient supply chain. This integration reduces errors, increases visibility into shipments, and strengthens collaboration with trading partners. A holistic approach to EDI integration is vital for staying competitive in today’s dynamic business environment.

Choosing the right EDI provider for your organization’s needs

Selecting the right EDI provider is a crucial step in successfully implementing and leveraging EDI 856 in your supply chain. The right partner can make all the difference in ensuring a smooth transition, reliable data exchange, and ongoing support for your organization’s evolving needs.
When choosing an EDI provider, consider the following key factors:

1. Expertise and Experience:
Look for an EDI provider with a proven track record of successfully implementing and supporting EDI 856 and other supply chain-related EDI documents. Their industry knowledge and understanding of best practices can be invaluable in navigating the complexities of EDI integration.
2. Scalability and Flexibility:
As your business grows and your supply chain needs evolve, your EDI provider should be able to scale their services and adapt to your changing requirements. Ensure that the provider can accommodate increased transaction volumes, new trading partner integrations, and any industry-specific compliance needs.
3. Integration Capabilities:
Assess the provider’s ability to seamlessly integrate EDI 856 with your existing enterprise systems, such as your ERP, warehouse management, or logistics software. A smooth integration process can significantly streamline your supply chain operations and reduce the risk of manual errors.
4. Customer Support and Responsiveness:
Reliable and responsive customer support is essential when implementing and maintaining an EDI solution. Look for a provider that offers comprehensive training, ongoing technical assistance.

How to Get Started with Ship Notice/Manifest Transaction Set (856)?

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Tips to Empower your eCommerce with great Supply Chain through EDI Integration

 

This post was updated to reflect current trends and information.


The term “eCommerce” is generally understood as the process of selling products and services over the Internet. However, there is much more that happens behind the scenes of an eCommerce Store. Business transactions such as electronic data interchange (EDI), supply chain management and funds transferred are all part of this online store, as it involves the exchange of all kinds of business transactions to keep the business running smoothly. In this article, I will dig deeper into these hidden eCommerce business transactions. To learn more about the positive effects an online store has on a company, read this blog written by my colleague.

Supply Chain Management (SCM)

Supply-Chain-Management-SCM

In general business terms, SCM is the management of the flow and movement of finished goods from point A, where goods are produced and stored, to point B, where the goods are consumed (final destination).

There are many elements, parameters and interconnecting networks involved in the process of provision of products and services required by the consumer. The challenge with supply chain management is to synchronize the line of supplies with consumer demand and also be able to measure the performance and success rate.

eCommerce & SCM Challenges

In today’s digital world, more and more businesses are embracing the online trade by building electronic stores and creating a web presence to promote and sell their products and services to a wider range of consumers around the world. Due to the revolution of mobility and Internet connectivity, consumers today are much more Internet savvy and are very capable of browsing and shopping online to quickly find the products or services they want. However, in turn, consumers are becoming impatient and request their bought products to be delivered to them in the shortest amount of time. This has created some challenges for e-retailers, such as the following:

  • How to keep the supply chain line full in order to respond to the growing demands and trends of the consumers
  • How to balance between incoming demands and production, knowing that major production facilities today are overseas and avoid a high level of inventory storage and great “over-stock”
  • How to quickly communicate the right business information and requests between the different systems of multiple business partners involved in the supply chain pipeline?

#1 – Use fully integrated software systems

The first tip in overcoming the above challenges would be to use integrated software systems when running an eCommerce Store. Whether it is a small business or a larger enterprise, having one platform to manage and run your business is very advantageous. I have witnessed many enterprises with over 50% of their business coming in from their eCommerce store and they are still keying in information manually. To be efficient, enterprises should be using integrated software systems to manage their eCommerce and retail business.

#2- Integration & Data Exchange (EDI, XML..)

To be able to balance between the demands of products and services coming in from the eCommerce site and the supply chain demands, the best option is to empower the eCommerce platform with EDI capabilities. This way businesses can exchange data automatically in real-time with suppliers and business partners, in order to keep the supply chain filled.

Most of the time, enterprises are not able to change their “legacy systems” quickly and at a low or affordable cost. This kind of project requires a large budget and a lot of resources. Therefore, unfortunately we still find too many legacy systems based on AS400/DB2 and other platforms that are still in production.

At the same token, modern ERP systems such as JDE and SalesForce lack many built-in features capable of exchanging data such as EDI. They offer the gateways for integration (i.e. API, Web Services…) but they expect the company to invest time and effort on integration and data exchange projects.

Read: EDI, XML or Web Services; what’s Best for eCommerce Integration

#3- Adopt Modern Solutions

In order to be able to exchange data electronically, enterprises should invest in modern, scalable integrated IT solutions that are flexible enough to grow with the business. The ideal integration solution should have the capabilities to parse data of different formats (such as EDI, XML, Json, CSV…), translate EDI from one format to another and it should be powerful enough to interact with different systems and platforms.

In addition, a modern efficient integration solution is the one that offers the flexibility to communicate with different business partners, using various modern communication protocols such as AS2, sFTP, Web services, etc.

Is your eCommerce & Supply Chain out of sync?

We often believe that we are sheltered from these common problems and that our IT systems work fine. After taking the time to analyze your business processes a little more you may begin to see some problems or room for improvement. With my 20+ years of experience on the matter, I have seen it all. Start empowering your eCommerce site with the best tools and processes.

 

 
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