How EDI helps retailers manage supplier performance at scale

As retailers grow, managing suppliers becomes more complex. More suppliers, more SKUs, more deliveries and more chances for things to go wrong. When supplier information lives across emails, spreadsheets and disconnected systems, keeping track of performance at scale becomes difficult.

That’s where electronic data interchange (EDI) comes in. Beyond automation, EDI gives retailers the structure, visibility and data they need to measure and improve supplier performance without adding more manual work.

Managing suppliers at scale

Without the right systems in place, supplier performance tracking often relies on:

• manual checks and exception handling
• delayed or incomplete data
• subjective feedback rather than facts
• reactive conversations after issues occur.

This makes it hard to spot trends, identify recurring issues and manage suppliers consistently.

Key ways EDI supports supplier performance management

On-time delivery tracking

Understanding whether suppliers deliver on time, and how long it takes to receive orders, helps retailers plan more effectively. It also provides clear insight into whether suppliers are meeting expectations.

Without automation, reviewing this information can be time consuming. With EDI, delivery data is easier to access and monitor. Advanced shipping notices (ASNs) show when deliveries are expected and what is being sent. On receipt, goods can be scanned into your system using SSCC labels, giving you accurate and timely delivery data.

Order accuracy and fill rates

EDI allows suppliers to send detailed shipment information, making it easier to track order accuracy. Retailers can compare what was ordered with what was actually shipped, identify partial deliveries, and stay on top of outstanding items. As a result, order disputes are reduced and fill rates are simpler to calculate.

Invoice accuracy and compliance

EDI data also supports invoice validation. Retailers can match invoices against purchase orders and advanced shipping notices, making it easier to identify:

• price discrepancies
• invoices submitted before delivery
• potentially fraudulent invoices.

This visibility also helps highlight suppliers with consistently high invoice rejection rates.

More focused performance reviews with suppliers

With EDI in place, performance discussions become clearer and more constructive. Retailers can:

• have fact-based conversations with suppliers
• share performance reports backed by data
• identify training or onboarding gaps
• support underperforming suppliers before issues escalate.

Instead of reacting to problems, teams can focus on improving outcomes and strengthening supplier relationships.