As your business grows, the way you manage your supply chain can either drive efficiency or cause chaos. Below is a breakdown of how manual processes compare to EDI at each major stage of the supply chain, so you can see exactly where the value lies.
Ordering (purchase orders)
Manual processing
Electronic Data Interchange (EDI)
Orders are emailed manually
Orders are sent automatically from your system to the supplier’s
Prone to typos or data entry errors
Less manual inputting improving data accuracy and consistency between systems
Delays due to back-and-forth communication
Close-to-instant transmission speeds up the order cycle
Difficult to track changes or confirm receipt
Built-in acknowledgements and logs ensure visibility
Order confirmation
Manual processing
Electronic Data Interchange (EDI)
Suppliers send confirmation via email or phone, or don’t even send any confirmation
Order acknowledgements are sent straight from the supplier to the retailers’ software through EDI
Retailers need to manually input updates from supplier
Status updates from suppliers flow directly into retailers’ ERP or inventory system
Easy to miss changes in quantity or delivery dates
Changes are tracked and recorded in real time
Inventory and stock updates
Manual processing
Electronic Data Interchange (EDI)
Inventory is updated manually,often after goods arrive
Inventory systems update stock levels as soon as dispatch or shipment notices are received
Shipping and logistics
Manual processing
Electronic Data Interchange (EDI)
Difficulty in coordinating warehouse receiving or delivery planning
Warehouses can prepare ahead of time with barcoded SSCC labels with pallet info and shipment breakdowns
Shipping info is shared by email or phone, often with limited detail
Advanced shipping notices (ASNs) give full visibility into what’s coming, when and how
Receiving goods
Manual processing
Electronic Data Interchange (EDI)
Extra admin to update stock and finance systems
Automatic updates across inventory and finance platforms
Errors in quantity or items are common and slow to resolve
Faster receipting with digital matching of items and quantities
Reporting and analytics
Manual processing
Electronic Data Interchange (EDI)
Data is scattered across emails, spreadsheets, and paper
Centralised data from across your supply chain
Hard to get a full picture of performance or issues
Built-in dashboards and alerts make it easy to track key metrics
Invoicing and payments
Manual processing
Electronic Data Interchange (EDI)
Invoices are emailed as PDFs or hard copies are left with the stock or posted
Invoices are transmitted electronically and validated automatically against other order information
Manual data entry into accounting system
Invoice data flows straight into your accounting software
Prone to errors and delays, causing payment disputes
Faster, cleaner approvals reduce days outstanding and improve cash flow
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