x You are participating in logistics activities and supply chain management, need to learn what the EDI term is, what words abbreviated?
X You want to find out specifically about the role, benefits and applicability of Edi in Logistics?
How do you not understand the development process as well as the operation principle of EDI?
Proship.vn we will approve the following sharing content to clarify the terms that stand for the Edi in logistics? The role and application of the EDI in logistics and supply chain management?
What is the abbreviation of Edi in Logistics? How is the process of developing Edi?
Join Proship to read the following content to know what the word is an acronym for and how the development process is:
What is Edi in logistics?
What is Edi in logistics? EDI in Logistics stands for the English phrase "Electronic Data Interchange" . For businesses, EDI is a method of exchanging information and business materials such as orders, invoices, shipping information, ... between partners.
EDI development process
In 1960, Edi began to be used in the basic form, used to exchange information between one company and another electronic means. EDI technology helps promote the process of completing the work of commercial organizations and minimizing manual errors by automation of all communications between businesses (B2B).
Application of EDI in logistics and supply chain management
What is the application of the EDI in logistics? The EDI in supply chain management is used to arrange the transfer of documents such as the bill of lading (B/L - Bill of Lading), customs vouchers, transportation status, routing instructions, invoices and many other relevant documents. EDI has made important contributions to the import and export market, specifically:
EDI contributes to good management of inventories
EDI helps businesses maintain inventory reserve by providing access to real -time updates and the latest market trends. From there, businesses can use to rationalize the allocation of resources appropriately, manage the shortage or excess of inventory.
EDI contributes to improving communication efficiency
Successful transactions when an instant, safe and effective communication is achieved not only between the origin and the final destination of the product but also between the manufacturer and the distributor. Not only in physical communication but also related to information and data, thereby promoting the link of the supply chain links.
EDI for logistics service operators
EDI integrates sea, road, airway activities in the same communication stream and in the management of transport ports, customs, ...
EDI helps the message standardized
The exchange of electronic information via EDI uses a standardized language, shared by the sender and the recipient. By using a common language, different information systems interact with each other will overcome language and technical barriers.
EDI for distributors
EDI helps to plan the supply chain, good control of inventories with easy -to -damage products.
EDI in Customs Management, PIF
EDI contributes to rationalizing and providing safe administrative procedures.
How important does Edi play an important role for the business?
What is the benefits of EDI in logistics? Business benefits that EDI technology brings through automation and integration B2B are:
Cost savings for businesses
EDI replaces usual manual exchange methods. Compared to the methods of input, printing, copying or handling manual records, the application of Edi helps businesses save most of the cost of papers and mail. Besides, businesses also save time because they do not need to re -enter information many times.
Improve the efficiency and accuracy for transactions
EDI helps to limit risks like input errors that the previous manual methods often suffer. There is also a shortening time of cash flow, improving business transactions and partnerships and customers. The EDI storage system also helps the text assigned to partners and can monitor the roadmap and path of goods in each stage.
Increase business efficiency
When EDI is used well, it means that businesses will operate smoothly, faster and more effectively from reaching customers, building relationships with partners to the completion of necessary documents quickly.
Specifically, EDI helps businesses reduce errors in invoices, update Realtime orders, ... from which can improve competitiveness compared to competitors.
Wider connectivity with businesses around the world
Businesses can exchange directly with foreign companies easier (when both use EDI technology). This helps domestic enterprises can expand cooperation with large companies or easily for import and export process.
How is the process and principle of EDI's operation?
The principle of EDI's operation is as follows:
Stage 1 - Prepare electronic documents
The database submits the electronic documentation to send it. This data will be encrypted to the Edi standard with their software system to ensure data safety and security during the transmission process.
Stage 2 - Data translation
The data to be transmitted will be translated and prepared to transmit through electronic vehicles. The EDI converter will translate and prepare this data.
Stage 3 - Data transmission
EDI data is communicated via public internet or transmitted via Value Added Network (VAN) - a special network designed to support the EDI data transmission.
Stage 4 - Data translation received
The recipient will use its software system to translate the data received from the sender. This process is based on the prescribed edi standards to ensure consistency and understand the transmitted data.
Stage 5 - Data processing
The data after being translated will be transferred to the electronic system for processing. This process includes the update of information systems, order processing or other business activities depending on the purpose of using data.
What is EDI in logistics and knowledge related to Electronic Data Interchange, the role of EDI in logistics and supply chain management has been shared by Proship Logistics. Accordingly, if the import -export enterprises are participating in the supply chain management and plans to apply EDI technology to the job, they should update the above content.
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