For fresh produce companies working with retail and other trading partners, exchanging business documents is part of the daily flow of orders, shipments, and invoicing.
The question is how much of that information is exchanged electronically from one system to another—and how much still depends on someone rekeying an order, entering information from another portal, or manually sending documents.
Electronic data interchange, or EDI, provides a standard way for businesses to exchange documents electronically. When EDI is integrated with the right ERP system, information from supported trading partner documents can be transferred to and from an ERP without requiring employees to re-enter the same data.
That can reduce manual work, limit opportunities for clerical errors, and give employees more time to focus on the changes and exceptions that actually require attention.
Key Takeaways
- When EDI is integrated with the right ERP, it can reduce the need to rekey information from routine trading partner documents while keeping that information connected to order, shipment, and invoicing workflows.
- The value goes beyond sending documents electronically. A strong process should also account for changes, exceptions, and the requirements of individual trading partners.
- Common EDI documents include purchase orders, purchase order acknowledgments, advance ship notices, invoices, and functional acknowledgments.
- Trading partner requirements vary, so businesses should understand both which documents they need to exchange and how each connection will be managed.
What Does EDI Automation Replace?
EDI automation replaces manual steps involved in transferring business information from one company’s system into another.
Without an automated connection, an employee may need to receive an order through email, fax, a customer portal, or another source and enter the information into an ERP or another business system. Outbound documents may require similar manual handling.
Each time information is re-entered, there is another opportunity for an order detail to be entered incorrectly.
With an integrated EDI process, information from supported inbound and outbound documents can be transferred to and from an ERP without employees having to rekey the same information.
The goal is not to remove people from the process. It is to remove unnecessary data entry so employees can spend more time reviewing the situations that require judgment.
Which EDI Documents Are Commonly Exchanged with Trading Partners?
The right document set depends on the requirements of each trading partner.
Common EDI documents include:
- Purchase orders (POs): communicate what the customer is ordering.
- Purchase order acknowledgments: communicate the supplier’s response to the order.
- Advance ship notices (ASNs): provide shipment information before the product arrives.
- Invoices: communicate billing information for the transaction.
- Functional acknowledgments: confirm that an electronic document was received and could be read, separate from whether the business information within it was accepted.
Together, these documents represent common points of electronic exchange across ordering, shipping, and invoicing.
But a checklist alone is not enough.
Find out which documents your specific customers and trading partners require, how each one is handled, and what happens when information changes.
How Should EDI Automation Handle Order Changes?
EDI automation should make routine document exchange easier without removing appropriate review when a trading partner requests a change.
An incoming purchase order is not always the end of the conversation. A buyer may change quantities, products, dates, or other order information after the original transaction has been sent.
That makes change management an important part of evaluating an EDI process.
Can employees see what the trading partner requested? Can they review changes before those changes affect the order? Can individual lines be accepted or rejected when appropriate?
Those capabilities matter because automation should not mean automatically accepting every change. The goal is to automate routine document exchange while keeping people involved when a business decision is required.
How Do Trading Networks Fit Into EDI Automation?
Not every trading partner connection works exactly the same way.
Some businesses exchange information through direct EDI connections. Others connect through a trading network that helps route electronic documents between companies.
When evaluating EDI automation, ask whether the provider can support both the documents and connection methods your trading partners require. Consider:
- Which of your current trading partners are supported?
- Does the connection happen directly or through a trading network?
- Who handles mapping and translation requirements?
- What happens when a partner changes its specifications?
- Who supports the connection when a transaction fails or an exception occurs?
Those operational questions can be just as important as whether a vendor checks the box for “EDI.”
How Can EDI Automation Reduce Order and Invoice Errors?
EDI automation can reduce errors by removing repeated manual entry from routine transactions.
If an employee has to read a purchase order and type the same information into another system, each field creates another opportunity for a mistake. The same is true when shipment or invoice information has to be copied between systems.
When information from supported documents is transferred electronically between systems, teams can reduce rekeying steps and the clerical errors associated with them.
Automation does not guarantee that every transaction will be correct. Incorrect source information, trading partner changes, exceptions, and business decisions can still require employee attention.
The value is that employees can spend less time reproducing information that already exists and more time working on the transactions that actually need review.
What Should You Look for in an EDI Automation Solution?
“Does it support EDI?” is only the starting question.
Look for a solution that can:
- Exchange the document types your trading partners require
- Connect electronic transactions with the ERP workflows that support ordering, shipping, and invoicing
- Reduce duplicate data entry
- Handle buyer-requested order changes and exceptions
- Support the connection methods your trading partners use
- Provide mapping and translation for different partner requirements
- Give your team support when connections or requirements change
The goal is not simply to send documents electronically.
It is to connect electronic trading with an ERP that can support the documents, changes, exceptions, and workflows your trading relationships require.
Connect EDI to the Way Your Business Works
EDI automation can reduce manual entry and support more consistent electronic document exchange, but the connection itself is only part of the equation. The ERP behind it also needs to support the orders, shipments, invoicing, changes, and exceptions required by your business and its trading partners.
Famous Integration Services (FIS) works with Famous ERP to support electronic trading with customers and other business partners. Famous provides EDI mapping, translation, implementation, and ongoing support, helping customers connect trading partner requirements with the operational processes behind them.
Want to take a closer look at how your trading partner connections work today? Talk with our team about whether integrating EDI with the right ERP could reduce manual steps and better support your electronic trading requirements.
Frequently Asked Questions
What is EDI automation?
EDI automation enables supported business documents to be exchanged electronically between trading partners and business systems without employees having to manually re-enter the same information.
Which EDI documents are commonly used in fresh produce?
Requirements vary by trading partner, but common documents include purchase orders, purchase order acknowledgments, advance ship notices, invoices, and functional acknowledgments.
Does EDI automation eliminate order errors?
No. It can reduce errors associated with manual rekeying, but source-data issues, order changes, exceptions, and other business decisions can still require employee review.
Can EDI automation handle changes to purchase orders?
A strong EDI process should account for buyer-requested changes as well as the original transaction. Look for the ability to review requested changes before they affect the order and, when appropriate, accept or reject changes at the line level.