The use of an electronic data interchange system in business has been something incredibly beneficial and it has touched just about every single sector and industry around the world. There are many uses forbeing one of them and this area in particular has seen the greatest benefit from the sending of electronic data versus the traditional paper option. We know that EDI is able to increase productivity and speed up operations and when it comes to shipping this is exactly what has happened, especially in the retail sector. Here is why EDI is so important when it comes to the shipping of goods.
The receipt of goods has been made incredibly easier for retail businesses thanks to a new automated and electronic method of sending shipping notes. In the past each item would have to be checked off on paper shipping documents which would be a very long winded approach to the recipe of goods. This would not only cost extra time for those working on the backdoor, but also for those who were working on the delivery side of things. These days the delivery note will be pre-loaded in to a PDA and then when the delivery comes in, each item is scanned and checked, greatly streamlining this aspect of delivering goods.
Invoicing is now faster, more efficient and more accurate than it has ever been before and invoices can be sent the moment that products have been received. This is something which has greatly helped to increase business relations thanks to the minimizing of inaccuracies and it also helps people with their admin and the speed by which people get paid. There is also an added level of security here in terms of the storage of invoices, as it is now impossible to lose or misplace na invoice as it is immediately backed up on the system. This helps with any queries, it helps in terms any potential audits and it is also goo practice from a tax point of view.
It is not just domestic shipping which sees benefits thanks to an electronic data interchange system, it is also heavily used in freight shipping and it has seriously increased the speed by which products are checked into ports and manifests checked off. EDI uses a series of pre-coded messages which can be used instantly when products are on the move, for example data can be sent to Customs (Manifest, Bill of Entry), Port (Container Stowage planning, Cargo Dues, Load/Discharge list, Container moves), Principals (Load/Discharge list, Container moves, Bookings). All of these messages ensure maximum efficiency and zero mistakes. You can only imagine the problems that are caused when a freight container can’t be moved because of a discrepancy, EDI systems have now all but made this a thing of the past.
As we can see, the use of an electronic data interchange system is something which has benefitted the shipping industry more than most.