How EDI Shipping Speeds Up Shipping and Freight

Professional completing business order through EDI shipping processes from an edi capable online storeFast and reliable shipping has never been more critical, and EDI shipping is the solution. With more consumers and businesses opening online, how quickly merchandise moves from manufacturers to distribution centers to stores or consumers can mean the difference between a sale and no sale. Recent studies found that two of the top reasons why buyers abandon their online purchases are delivery time and shipping costs.

Electronic Data Interchange (EDI) is a data transfer standard that allows logistic-related information to be sent electronically. It’s much faster to generate, send, and receive purchase orders, invoices, and bills of lading through EDI. No one needs to wait while data is entered manually and the necessary documents are prepared so items can ship.

What Is EDI Capable?

EDI capable organizations have invested in EDI software to streamline business communications. Logistics companies that invest in EDI solutions can provide the electronic exchange of data on behalf of their customers. Small to midsize companies can enjoy the same digital capabilities as large corporations without the cost of an in-house EDI solution. 

How Does EDI Trucking Work?

Suppose a retailer without EDI processes purchases ten pallets of storage containers from a manufacturer. The retailer generates a purchase order and emails it to the manufacturer. The manufacturer produces a commercial invoice and a bill of lading to accompany the shipment. Once the paperwork is complete, the pallets are loaded on a truck and shipped to the retailer’s warehouse or distribution center. Upon receipt, the retailer pays the invoice. 

But what if the logistics company was EDI capable? Imagine the retailer places the order online. The manufacturer receives the order electronically through the website. Its internal systems automatically generate the shipping documents in EDI format and forward them to the logistics company for transport. The EDI-capable trucking company receives the documents and schedules pickup and delivery.

There’s no waiting for a human to generate the paperwork during business hours. The documents aren’t attached to an email that must be opened. A process that may have taken hours or even days is reduced to minutes with digital technology.

SEE ALSO: What Is Real Time-Tracking in Logistics?

Why Use EDI Shipping?

Electronic transmission of shipping documents is part of any company’s digital transformation. Working with EDI-capable logistics companies means fewer errors, faster processing, and lower costs. It translates into meeting customer expectations for fast delivery. Let’s take a closer look at each benefit:

Fewer Errors

EDI eliminates manual data entry. Instead, information moves from computer to computer. As a result, truckers won’t arrive at, for example, 4562 Applegate Drive instead of 4652 because of an error when generating paperwork. Reversing two digits means delayed delivery of merchandise needed to fulfill an order, but EDI processes eliminate that issue.

Faster Processing

Moving data electronically happens at internet speed. Information arrives in minutes, not hours. In today’s environment, seconds matter. Almost 90% of Americans will move to a competitor’s site when a web page takes too long to load. At least 50% will abandon a cart if the checkout process takes too long. If consumers are unwilling to wait less than a minute to make a purchase, they are certainly not going to wait weeks for delivery.

Lower Costs

Logistics companies with EDI shipping capabilities can maximize their transportation resources to expedite delivery and reduce costs. For example, an EDI-transmitted shipping request allows a company to place the freight on a truck the same day it received the order, lowering the overall cost of the shipment. Not only does this reduce the shipping costs, but it also reduces the transport times.

Why Veltri Logistics?

Veltri Logistics is a family-owned logistics company specializing in regional trucking in Pennsylvania, New Jersey, and Delaware. Our EDI-capable systems ensure your freight moves as quickly as possible with minimal disruption. Given the accelerated world of commerce, consider partnering with a company that understands that seconds matter.

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