How to enrich the EDI flow in the retail sector?

EDI retail

One of the most important characteristics of the EDI world is the ease of processing information that’s shared once it’s collected. This is explained in part, thanks to the homogenization of information and the use of a standard format that allows information and documents to be exchanged. For example, in the retail sector, the regulatory system allows users to send a catalog of products, manage an order or process a payment notification or invoice.

Technological implantation in retail EDI

EDI is widely used in the distribution world and in comparison to other sectors, this sector has the greatest implantation of data interchange technology for managing commercial documents or sending data electronically. The reason is that companies that use retail EDI manage a large number of commercial transactions, which are a major part of businesses and companies where the public generally goes.

Supermarkets and shopping malls are just some of the businesses that collaborate to sell and move large quantities of stock. In practice, this means there’s a high volume of operations that add to the interchange of B2B processes (stock management, type of articles, order processing, shipments to suppliers, etc.) in the supply chain. The usual flow of EDI between distributors and suppliers like orders and invoicing is not enough for multinational companies. Why not take advantage of it to the maximum? Make EDI profitable to optimize business.

There are other types of messages from lesser-known chains such as PRICAT, DESADV, REMADV, RECADV or RETANN, among others, which have the advantage of optimizing and making communications more efficient between distributors and suppliers. What’s more is that these EDI messages offer great benefits to both sides of the B2B chain. Once an EDI solution has been implemented, it’s easier to incorporate messages and take advantage of cost reductions thanks to greater efficiency and security in the automation and integration of processes such as receiving orders as well as operations (sending an invoice, payment notifications, or the reception of an order or a catalog of products, etc.).

What other EDI messages enrich the flow of communications?

DESADV: this EDI message is also known by the name of ASN, two acronyms that refer to Advanced Shipped Notice and Dispatch Advice. They refer to dispatch notice and shipping notice respectively. This EDI solution has great advantages for distributors and providers. For example, DESADV allows users to verify the merchandise sent by the supplier and to know all the details of the order.

At the same time, the anticipation of the shipping notice allows for broad traceability, facilitating loading and unloading tasks, and includes valuable information such as packing numbers, product expiration dates or the configuration of pallet products. In short, thanks to the use of DESADV, all operations are automated and delivery management is improved due to streamlining receptions and shipping processes.

As previously mentioned, there is a need to manage stocks and the large number of company products dedicated to retail EDI. Thanks to PRICAT, any manufacturer can inform its suppliers about its catalog of products in real time in addition to reporting data such as characteristics, references, logistical details, etc.

REMADV is an EDI document that a company issues to its suppliers to notify them of a payment document or an invoice request. In short, REMAV (Remittance Advice Message) is a type of payment notice that gives information about a payment, how much money will be paid and best of all when the money will be paid.

As with the EDI DESADV message, the RECADV document is the most widely known and used. Basically, this message is utilized in the EDI distribution sector to confirm to manufacturers when an order has arrived. This reduces expenses by avoiding rejections when paying invoices.

ORDERS RESPONSEThe Order Response message provides the ability for a supplier to respond to an order previously sent by the buyer.

Finally, there are other EDI messages such as RETANN and RETINS that improve communication between the manufacturer and the supplier by reporting any differences and any problems with the orders or merchandise sent. RETANN means announcement of returns and is translated as a return notice. Something similar happens with the EDI retail RETINS (Instruction for returns) message or return shipping.

In short, the use of EDI messages improve supply chain communications, automate processes and reduce operational errors by reporting valuable data such as the traceability of goods, an invoice payment and a delivery notice. In summary, EDI tools are essential for B2B operations, especially in retail EDI.

Contact us to learn how to optimize your EDI solution and enrich commercial communications with all of your suppliers.

Growth of e-Commerce driving use of EDI in the fashion industry

MOda

In the retail sector, the fashion industry has a great impact on business and exports in countries such as Italy. The country is a major hub of suppliers and distributors with department stores such as Printemps, Harrods and Saks, among other big names. The sector is in continuous movement and covers a wide range of products, which entails complex operational and supply processes in the international scope. A new scenario in ongoing development that calls for agility and efficient solutions.

The future of fashion is digital and defined by the customers’ needs. e-Commerce in the retail sector and the use of mobile devices are growing year after year and require new, more complex processes to which companies must adapt. According to an e-Marketer study, a 23.2% increase in e-commerce worldwide is expected in retail. Electronic sales amount to 10% of total sales for the sector. This study also states that, by 2017, mobile commerce will account for more than 70% of e-commerce sales in China and India.

The sector’s features have made it one of the most advanced in adopting technological processes in its logistics operations and the exchange of business documents. The great heterogeneity of products and globalization has led fashion companies to implement electronic data interchange (EDI) to deal with the large volumes of information they handle and to be able to connect with companies from any part of the world.

In a sector where the commodities are constantly changing and must reach the end client in record times, it is indispensable to find ways of working which are more efficient and immediate. Automation of the exchange of information between businesses in the sector savings on cost and times by accelerating data processing.

How to reach any part of the world?

Through an integral EDI system such as EDICOM’s, a single company can exchange its orders, invoices, or delivery notes electronically and immediately with any supplier, wherever they are located and using any type of standard message. When an invoice or business document is created, the EDI solution processes it automatically, translates it into the standardized language required by the partner and forwards it. This happens the same way with any other business, logistical and administrative transaction.

Some of the biggest brands already rely on EDICOM to implement their EDI solutions. To name but a few, Harrods, Cortefiel, Printemps or El Corte Inglés, four of the main fashion market hubs. This experience enabled EDICOM team to develop a Global EDI solution, which tackles the two needs of businesses in the sector: internationalization and product heterogeneity.

What other documents can be exchanged?

This electronic system allows the exchange of other types of messages such as product and price catalogues, sales reports, despatch advices or returns, etc. EDI automates the sending of this information and also ensures traceability of the documents, at all times providing knowledge on whether the document has been opened, read, etc…

Benefits of EDI in the fashion industry

  • Faster response times
  • Saving on administrative costs
  • Efficiency in working procedures
  • Accuracy in the reports sent, as they come from the ERP
  • Providing greater visibility of the status of processes throughout the supply chain.

Technological Solutions for the Retail Industry

Retail Industry

The United States is a global leader in the retail industry, a sector that, today, faces important challenges as the immediacy demanded by the final consumer or the globalization. In this sector, retailers are increasingly relying on the use of technological solutions, such as electronic data interchange. In fact, the retail industry is by far the most advanced when it comes to the incorporation of EDI into company operations.

Why is EDI technology an ally in the retail industry?

Although only in recent years have retail companies had to optimize their technological processes to be competitive, EDI technology has been tied to this industry for decades. This is due to the specific characteristics of the sector, such as the high volume of commercial transactions, the heterogeneity of products or the communication between partners with very different characteristics.

The main reason EDI and technology have become allies of retailers is that they can solve all the aforementioned situations. As well, they have the following advantages:

  • Automation of commercial transactions
  • Increased productivity
  • Economic savings
  • Reduced errors
  • More agility and efficiency in the supply chain management
  • Fluid communication with suppliers and customers at a global level
  • Increased safety during processes

EDICOM’s Technological Solutions for Optimizing the Retail Industry

EDI Platform:
The retail industry has a variety of players, ranging from large distributor chains to small suppliers. That is why EDICOM has developed different EDI solutions, which are adapted to the needs of each type of profile:

  • Ediwin XML / EDI Server: This is a software that allows companies to integrate electronic data interchange with their management system, so that transactions are automated. With this platform, the retail industry streamlines operations, increases security and adds traceability to all processes.
  • Ediwin Viewer: This is a low-cost, quick-start alternative designed for companies that exchange low volumes of documents, as with certain suppliers or small retailers. The EDI Web solution does not require companies to implement any systems; they need only an internet connection.
  • Ebimap: This application is a data mapper, which is a module that integrates into the EDI solution to automatically translate any message to the standard required by the owner or the recipient. It is essential to establish fluid communication between partners of all kinds.
  • Business@Mail: Occasionally, retailers send messages to recipients who do not have an EDI solution. To avoid duplicating work, this solution integrates with the EDI platform of the issuer and automatically publishes the electronic documents in a secure web portal, through which the recipients can access with a username and password.
  • VMI Flow: This solution is based on VMI (Vendor Managed Inventory) technology that aims to improve the management of the supply chain. This system submits the information exchanged between partners through complex mathematical analysis to synchronize supply and demand to the maximum. The goal is for the final customer to receive greater value, better service and a greater variety of products.

Cortefiel, Grupo Gigante, Toys R’Us and Harrods are some of the big retail companies that already use these solutions to optimize their B2B communications and their work procedures. You can learn more about their success stories here.

EDICOM is now authorized EDI provider to Carrefour Brazil

IMG_EDI_retail

After a rigorous series of tests, EDICOM has managed to become an EDI provider approved to connect with Carrefour, Brazil’s second biggest retailer. These trials positively rated the security assurances provided by the EDICOM platform in exchanging business transactions, such as purchase orders, invoicing for tax purposes and “espelhos da nota fiscal eletrônica“.

In practice, approval as an EDI service provider allows seamless connectivity with Carrefour. This means that all EDICOMNet platform users now have direct access to this retail giant, with no need for third-party intervention in their communications. This ensures more immediate and secure electronic document interchange.

Why does Carrefour trust EDICOM?

The reasons behind EDICOM’s certification as an approved provider include its technological capacity and international projection. The EDICOMNet VAN currently handles around 300 million transactions, from more than 12,000 trading partners worldwide. Moreover, it is a multiprotocol and multi-standard network, so can easily adapt to each company’s particular needs.

Another important reason for approval as an EDI provider is the service availability. In the SLA signed, EDICOM undertakes to ensure 99.9% availability. The resolution time for incidents is also set at less than 6 hours.

Beyond these reasons, we must add that EDICOM holds different international certifications and authorizations accrediting its platform security and data confidentiality. These include the ISO 27001 Information Security standard, ISO 20000 for IT Service Management or ISAE 3402.

A global connection with the retail sector

In addition to Carrefour Brazil, EDICOM also has direct connection to important retailers worldwide, such as Dia, El Corte Inglés, Toys ’R’ Us or Grupo Gigante. An industry in which the use of EDI becomes an indispensable tool to optimize supply chain management and ensure smooth communication between the many stakeholders taking part in it.

EDICOM links up with major Russian retailers

We are witnessing a world of increasingly global trade where borders are diluted. The spread of communications has encouraged many companies to take the leap into foreign trade or expand their destination countries. With 143 million people, Russia is one of the largest potential markets worldwide. But how is it possible to manage an EDI relationship there?

In certain sectors, especially in retail,the use of electronic data interchange is indispensable. To be able to connect with distributors in that country, many European multinationals believe they should have a local EDI solution, due to the specifications and requirements of the Russian market. However, this is no longer necessary, as EDICOM’s EDI Platform automatically adapts to the requirements of any country worldwide.

When it comes to retail in Russia, EDICOM’s EDI solution has the capacity to connect with some of the country’s major retailers:

e-Invoicing peculiarities
In transactions exchanged via EDI with Russian retailers, e-invoicing is fast becoming one of the most significant factors. As is happening in the rest of the world, its use is spreading thanks to the lower economic costs and simplified operations.

The Russian e-invoicing system sets out some restrictions, such as the use of XML standards tagged in Russian, or the use of local service providers to handle message sending, signature of documents with local certificates, or integration with the Russian tax authority through the exchange of different ACKs. To this end, EDICOM maintains collaboration agreement with local entities in the country that guarantee the provision of an integral service for the exchange of a complete flow of EDI transactions with any Russian retailer.

Guarantee of a global partner
At EDICOM, our work is focused on making international expansion easier for our clients. Through EDI platforms and electronic billing, companies now have the chance to operate automatically with any company from any country, with no need to install local solutions in parallel.

With projects up and running in over 60 countries, we are a leading technological company with a strong international presence and proven ability to keep all our solutions in force, updating them in line with the particular features of practically any country in the world.   This way, multinationals can integrate 100% of their communications in a single point, saving time and money.

Sources:
http://www.edicomgroup.com/solutions/edi/what_is.html
http://www.edicomgroup.com/solutions/einvoicing/what_is.html
http://newsroom.edicomgroup.com/en/2014/11/17/edicom-extends-service-coverage-in-russia/