How FMCG brands are using EDI to stay ahead

In the fast-moving consumer goods (FMCG) market, brands must be agile, data-driven and efficient, not just to meet retailer mandates, but to optimise operations, free up valuable IT resources and help teams focus on value‑added tasks.Take SunRice, one of Australia’s top branded food exporters. Since 2008, they relied on middleware to translate SAP iDoc files until 2019, when they decided to outsource this to MessageXchange. The results:
  • flexible, fast and accurate data exchange
  • much lower reliance on internal hardware, maintenance or licensing
  • huge time savings: what once took their IT team hours can now be managed in just a few clicks
  • freed-up IT resources that can be diverted toward high-value projects. For FMCG businesses, EDI shouldn’t just be box ticking exercise, it’s a strategic asset.

1. Efficiency gains and cost savings

EDI automates a suite of transactions including purchase orders, advanced shipping notices (ASNs), invoices, product catalogues and sales reports. EDI automates repetitive manual tasks, like entering PO data, checking stock availability or matching invoices, which reduces human error and speeds up transactions. For FMCG businesses where volumes are high and timelines are tight, this means faster turnaround, fewer delays and significant labour cost savings.

2. Relieve IT burden, focus on strategic work

As seen with SunRice, outsourcing EDI translation reduces dependence on internal systems and hardware, letting lean IT teams concentrate on innovation rather than maintenance. With a cloud-based provider like MessageXchange, you get regular updates, compliance with retailer formats and dedicated support. All without having to worry about hardware, infrastructure or ongoing maintenance.

3. Speed and accuracy for fast-moving goods

When every minute and every pallet counts, automation is essential. High turnover items like food and beverage require precise data, shelf-life tracking and real-time updates. Delays and data errors can translate to empty shelves or expired products. EDI ensures your data is delivered quickly, accurately and in the exact format your retail partners expect.

4. Data visibility and better decision-making

EDI platforms like those from MessageXchange, often include real-time reporting dashboards, so brands get greater insight into order status, shipment progress and performance, helping them fine-tune planning, reduce waste and improve forecasting.

5. Seamless integration with business systems

Modern EDI works with Australian favourites like MYOB, Xero, SAP and Oracle, making order-to-invoice workflows smoother, accelerating cash flow and reducing human error.

6. Scalability during growth or new projects

FMCG businesses often experience rapid shifts, expansion into new retailers, seasonal demand spikes and new product launches. With a managed EDI platform, you can easily add new trading partners or documents without redesigning your internal systems. SunRice’s decision to move to MessageXchange was driven by exactly this - the need to handle upcoming large projects without the overhead of manual configuration, costly software licenses or stretched internal teams.Ready to learn more about EDI in the FMCG industry? Get in touch with our experts.

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Onboarding suppliers to EDI: why offer a free web portal?

Rolling out electronic data interchange (EDI) across your supply chain is a smart move. It reduces admin, cuts down errors and gives you better visibility across every order, invoice and delivery. But there’s one challenge that can get in the way: getting your suppliers onboard. Not every supplier is EDI-ready, especially smaller ones that don’t have the systems or budgets for full integration. That’s where a free web portal can be a game changer.

What is a web portal?

A supplier EDI web portal is a web-based service that allows your suppliers to participate in EDI processes without needing their own EDI system or software. It acts as a lightweight, easy-to-use entry point for suppliers who aren’t ready (or able) to integrate EDI into their own systems.

Through the portal, suppliers can log in from any web browser to:

  • receive purchase orders (POs) from your business and view them in a human-readable format
  • send back order responses or confirmations (e.g. accepting, rejecting or modifying orders)
  • send advance shipping notices (ASNs), letting you know what’s being delivered and when
  • create and send invoices
  • view message history and document status, so they know what’s been received or processed.

For suppliers, it’s like having a basic EDI system, without the technical setup or system integration. They simply receive a login and start transacting. They just need a web browser and they’re ready to go.

Why offer it for free?

Due to the simplicity of the web portal solution, it is often a cheaper form of EDI compliance for your suppliers. What makes us a little different from others is we offer our web portal solution, Colladium, for our customers’ suppliers to use at no cost to them.

It’s just another way to ensure success by removing a cost barrier for your suppliers. They can sign up and start sending and receiving EDI messages in minutes. Once your suppliers start using a web form portal, it can be a stepping stone for them to move to an automated integrated solution giving them a greater range of benefits from EDI compliance.

Getting started with MessageXchange

We try and make the process of getting started easier.

  1. Let us know what you want to achieve and we’ll suggest the best solution for you
  2. Start our partnership
  3. Connect to MessageXchange and test connectivity and messaging
  4. Go live and start onboarding your suppliers!

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EDI vs manual processing across the supply chain

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)

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Manual processing

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Electronic Data Interchange (EDI)

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Orders are emailed manually

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Orders are sent automatically from your system to the supplier’s

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Prone to typos or data entry errors

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Less manual inputting improving data accuracy and consistency between systems

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Delays due to back-and-forth communication

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Close-to-instant transmission speeds up the order cycle

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Difficult to track changes or confirm receipt

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Built-in acknowledgements and logs ensure visibility

Order confirmation

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Manual processing

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Electronic Data Interchange (EDI)

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Suppliers send confirmation via email or phone, or don’t even send any confirmation

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Order acknowledgements are sent straight from the supplier to the retailers’ software through EDI

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Retailers need to manually input updates from supplier

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Status updates from suppliers flow directly into retailers’ ERP or inventory system

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Easy to miss changes in quantity or delivery dates

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Changes are tracked and recorded in real time

Inventory and stock updates

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Manual processing

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Electronic Data Interchange (EDI)

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Inventory is updated manually,often after goods arrive

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Inventory systems update stock levels as soon as dispatch or shipment notices are received

Shipping and logistics

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Manual processing

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Electronic Data Interchange (EDI)

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Difficulty in coordinating warehouse receiving or delivery planning

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Warehouses can prepare ahead of time with barcoded SSCC labels with pallet info and shipment breakdowns

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Shipping info is shared by email or phone, often with limited detail

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Advanced shipping notices (ASNs) give full visibility into what’s coming, when and how

Receiving goods

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Manual processing

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Electronic Data Interchange (EDI)

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Extra admin to update stock and finance systems

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Automatic updates across inventory and finance platforms

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Errors in quantity or items are common and slow to resolve

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Faster receipting with digital matching of items and quantities

Reporting and analytics

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Manual processing

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Electronic Data Interchange (EDI)

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Data is scattered across emails, spreadsheets, and paper

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Centralised data from across your supply chain

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Hard to get a full picture of performance or issues

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Built-in dashboards and alerts make it easy to track key metrics

Invoicing and payments

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Manual processing

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Electronic Data Interchange (EDI)

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Invoices are emailed as PDFs or hard copies are left with the stock or posted

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Invoices are transmitted electronically and validated automatically against other order information

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Manual data entry into accounting system

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Invoice data flows straight into your accounting software

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Prone to errors and delays, causing payment disputes

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Faster, cleaner approvals reduce days outstanding and improve cash flow

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How to build an EDI strategy that scales with your business

If your business is growing fast, the last thing you want is systems that slow you down. That’s where electronic data interchange (EDI) can make a massive difference. But not all EDI setups are built for growth. If you don't plan it properly, you could end up stuck with something that’s clunky, slow and hard to change later on. Here’s how to set up your EDI in a way that’s flexible, future-proof and ready to scale, without giving yourself a headache.

Make it easy to add new partners

If your EDI system is too hard to set up with new partners, it’ll slow down your growth. MessageXchange offers customers a message compliance testing tool where your trading partners can run through your requirements and ensure compliance. The interface is easy to use and prompts them through the whole process. It also doesn’t require further one on one communication with individual partners. Then, once they’ve passed testing, it can take just minutes to set them up in production for them to start exchanging real EDI messages.

Choosing the right EDI provider for you

When you get to this stage there are a few things to look for. Try to find a provider who:
  • can connect you to lots of different partners
  • supports the different document types you’ll need now and later
  • has the capability to translate your files to that of your partners
  • lets you add new features over time (you don’t have to get everything upfront)
  • handles Australian and New Zealand standards (and maybe international ones too, if you're planning to export).
Want to learn more about this? Check out this blog.

Make sure your systems can talk to each other

You don’t just want EDI working on its own—you want it connected to your important business systems. Connecting your EDI to your inventory, accounting and point of sales platforms allows you to keep your systems updated and data accurate. This means when you get an order, everything updates automatically. No more copying and pasting. No more mistakes. No more delays. Think about the systems you use now, and plan for the future.

Choose the right support

Think about who’s going to run your EDI day-to-day. Make sure they have access to your EDI provider for any issues that may arise. If you have a strong IT team, you might be able to manage it yourself but if you don’t, get a provider who offers services that you might need.

Build reusable processes

You don’t want to create new rules every time you get a new customer or supplier. Instead, set up smart, flexible processes like one order template that works for all customers, one shipping process that works for full or partial deliveries, and one invoicing system that works for wholesale and retail customers.Want to learn how to implement EDI that molds to your growth? Get in touch with our experts.

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EDI in retail: from manufacturer to shelf

In today’s competitive retail landscape, businesses across Australia and New Zealand are under pressure to be faster, leaner and more connected than ever. From the factory floor to the shop shelf, electronic data interchange (EDI) is helping manufacturers, suppliers, distributors and retailers work together more efficiently. By digitising how supply chain partners share information—orders, deliveries, invoices, and more—EDI is making the entire retail ecosystem stronger, smarter, and future-ready.

What Is EDI?

Simply put, EDI (electronic data interchange) is the exchange of business information directly between business software. Think of a purchase order being created in one company’s accounting package, and it ‘magically’ appears in the supplier’s software; no email, no PDF, no manual data entry. Well, it’s not magic, it’s EDI!

Starting at the source: manufacturers and suppliers

The journey begins with the people who make or source the goods – manufacturers and suppliers. When a retailer or distributor places an order via EDI, it lands straight in the supplier’s system, ready for processing. Whether the supplier is sourcing locally or globally, EDI helps them:
  • confirm product availability
  • respond quickly to order changes
  • manage lead times more effectively
  • send digital confirmations and updates.
Suppliers can also use EDI to communicate with their own vendors, helping them maintain stock levels and plan ahead. For manufacturers, much like suppliers, EDI can automate order processing. Orders for raw materials, make-to-order or custom builds can go straight into their software. For manufacturers who produce on demand, EDI can even integrate with production planning systems to trigger workflows as soon as the order comes in.

Through the supply chain: warehousing and distribution

Once goods are packed and ready to ship, advanced shipping notices (ASNs) are sent via EDI to alert the next link in the chain. These ASNs provide details on what’s being delivered, in what quantities and when. That allows receiving teams to prepare and improves inventory accuracy. With standardised labels and barcode integration (like SSCC labels), goods can be tracked from origin to shelf with minimal manual input.

At the retailer: smarter ordering and replenishment

Retailers can create orders and send them directly to their suppliers’ software. Retailers can get responses back from suppliers to confirm if they can fulfill the order and also receive invoices directly into their software. You can take it even further with the information you get from EDI. When stock drops below a set threshold, EDI can trigger and order automatically to suppliers or distributors, reducing out-of-stocks and avoiding overordering.EDI has applications all across the retail supply chain. Want to learn more about implementing EDI? Get in touch with our experts.

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Best practices for implementing EDI in supply chain management

Electronic Data Interchange (EDI) is a powerful tool for improving efficiency, accuracy and speed in supply chain management. But simply adopting EDI isn’t enough –you need a solid implementation plan to ensure a smooth transition and maximise the benefits. Whether you’re new to EDI or looking to optimise your existing setup, following best practices can make all the difference. Here’s a step-by-step guide to help you get it right.

1. Get an internal team together

EDI implementation isn’t just an IT project – it affects multiple departments, including procurement, finance and logistics. Form a cross-functional team to oversee the process, ensuring that all key stakeholders are involved from the start. This will help with decision-making, troubleshooting and overall coordination. While putting together your internal team, think about your objectives. Make sure all internal departments are providing input on what they want to EDI to do for them.

2. Look at your processes and identify areas for improvement

Before diving into EDI, assess your current supply chain processes. Where are the inefficiencies? Are there bottlenecks that slow things down? Identify the pain points that EDI can help resolve, such as reducing manual data entry, minimising errors, or improving order fulfilment times. EDI isn’t just about automating transactions –it’s about improving visibility and decision-making. Consider what data you need from your supply chain to enhance forecasting and inventory management. Ensure that your EDI solution supports the exchange of this critical information. No matter where you sit in the supply chain, look at all aspects such as logistics/3PLs, suppliers, retailers, manufacturers, and warehousing.

3. Get your partners involved early

Successful EDI implementation depends on your trading partners being on board. Engage with them early to understand their capabilities, challenges and requirements. Work collaboratively to find solutions that work for everyone. This will help prevent delays and ensure a smoother rollout. Not all your suppliers and customers will be at the same level of EDI capability. Some may already be using EDI, while others might need more support. Make a list of your key trading partners and evaluate their readiness. This will help you prioritise onboarding efforts and address any potential roadblocks. Smaller suppliers may not have the resources or expertise to implement full-scale EDI. A web portal solution can make it easier for them to participate without needing a complex setup. We provide customers with a web portal solution, Colladium, that‘s free to use for your partners to send and receive EDI documents through a simple, user-friendly interface.

4. Plan for onboarding support

Onboarding partners to EDI can be a challenging process, especially for trading partners who are new to EDI. Provide clear documentation and support to help them transition smoothly. Assign a dedicated contact or team to assist with questions that may arise during implementation. Testing EDI messages with your partners is another thing that can take time and resources. A solution we provide our customers is automated message testing. It lets your business partners test the messages they’ll send you, before actually sending them. They’ll get feedback there and then. And no manual checking from your team, your partners do it all on our Colladium web portal. This takes a lot of the heavy lifting off your plate.Want to learn more about implementing EDI across your supply chain? Get in touch with our experts.

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EDI for small business: Benefits of web portals

Complying with your retailers’ electronic data interchange (EDI) requirements can be confusing and complex. For small businesses, you want to comply in an easy, cost-effective way with minimal impact on your existing processes. This is where web portal solutions, like Colladium, become a viable solution.

How does a web portal solution work?

EDI web portals allow businesses to exchange documents electronically with their trading partners via a web browser. Instead of integrating EDI directly into their internal systems, businesses can log in to a portal, where they manage EDI transactions. You don’t need to install any software or hardware, and no in-depth knowledge of EDI is required. With the web portal, you can easily create, receive, and send all necessary documents, including purchase order responses, advanced shipping notices, invoices, and more.

When is a web portal right for your business?

There are a few reasons you might choose a web portal for EDI over a fully integrated EDI solution:
  • You trade with a small number of retailers
  • You’ll receive a small volume of orders through EDI (roughly 30 or less orders a week)
  • You sell a limited range of products
  • Your software can’t generate the information required by your customers
  • You’re just starting out with EDI.

Why choose Colladium for your EDI compliance?

  • It’s low cost: It's free to trade with many retailers. We also have a range of retailers that you cantrade with for $99 per month to trade and $49 for each additional retailer.
  • Quick to get started: Register, put in your details and start trading in as little as minutes.
  • No technical expertise required: A user-friendly interface where you can create all requiremed documents with ease, even advanced shipping notices (ASNs) or despatch advices.
  • Compliance with rrading partners all in the one place: See all your orders in the one listing and respond to them all in the one, familiar way. Behind the scenes, we make sure that everything your customer needs is covered, down to their validation checks, business rules and more.
  • Add more integration and functionality – Download orders in CSV or XML format for easy uploading into your software, and share information with your logistics and 3PL partners for them to create the ASN on your behalf, for as little as $49 a month.
  • Help at your fingertips: We’ve got a comprehensive knowledge base that’ll walk you through how to get started, how to accept an order, issue an ASN or invoice and more. And if you can’t find what you’re looking for there, just get in touch with our Australian-based support team.
Check out Colladium today at Colladium.com

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The human element of EDI

In the world of electronic data interchange (EDI), the focus often leans heavily on technology, automation, and process optimisation. However, the human element is just as critical in ensuring a successful EDI implementation. People drive the planning, execution, and refinement of these systems, making their roles indispensable. Here's how to focus on the human side of EDI for the best outcomes.

Getting your internal team ready for EDI

A successful EDI implementation begins with preparing your internal teams. Keeping everyone on the same page ensures smoother transitions and better outcomes. Open communication is essential. Teams involved must be kept up to date on the project's goals, timelines, and progress. Regular updates and transparency help align everyone's efforts and reduce resistance to change. This group should include representatives from various departments who will work together to oversee the rollout. We think these departments are key:
  • Management: They’re the ones you’ll need to get onboard for your EDI project to go ahead. You’ll also need them to continue to keep your EDI project on track in terms of timelines and goals.
  • Information Technology (IT): There’s a bit of technical stuff involved in EDI so they’re the best to tackle those aspects.
  • Finance: EDI significantly reduces manual inputting for accounts payable and receivable and will improve their processes.
  • Buying/procurement: EDI will optimise processes when producing and sending purchase orders.
  • Warehouse: Business operations teams will be able to get the most out of the data received through EDI, particularly information about deliveries.
A cross-functional team ensures diverse insights and facilitates better coordination. It also ensures all your departments are getting the most out of the EDI project.

What people you need for your EDI project

The success of an EDI initiative hinges on having the right people in the right roles. Here are the key areas of expertise you need:

Technical expertise

EDI involves specific technical knowledge. You'll need colleagues skilled in:
  • Understanding file formats, connection protocols and other aspects of your business software.

Workflow design

Designing workflows that align EDI processes with your business operations is critical. This requires colleagues who can:
  • analyse your existing workflows and identify areas for improvement.
  • determine how your EDI solution facilitates your workflow goals and daily operations.

Change management

Adopting EDI often means changing established processes. Specialists in change management help:
  • guide teams through new workflows.
  • address concerns and provide training.
  • plan ahead to ensure a smooth transition with minimal disruptions.

Planning and coordination

Leading an EDI project demands strong project management skills. Your project leader should:
  • develop detailed plans and timelines.
  • coordinate activities across departments.
  • monitor progress and adapt to challenges.
Worried you don’t have people who can cover these areas of knowledge? It’s all good, we’ve been doing data integration for a while so we can help with, or recommend people who can help with some of the expertise areas above. While EDI systems are built on technology, their success depends on the people managing and operating them. By preparing your teams, engaging the right expertise, and fostering collaboration, you can ensure a smooth and successful EDI implementation. Remember, technology may drive efficiency, but it’s people who bring the vision to life.Want to go through your EDI requirements with an expert? Get in touch with us below.

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MessageXchange interview series: Peak retail periods and how can EDI help with EDI expert, Kieren James

During peak business times, orders increase, sales increase and overall we see an increase in workload. We sit down with our resident EDI expert, Kieren James, to chat about the challenges businesses face during busy peak periods and explore how EDI can help make things easier.

Q: When are the typical peak periods in retail?

Peak periods in retail typically begin four to six weeks before major events such as Christmas, Easter, Mother's Day, Father's Day, Valentine's Day, Black Friday and Cyber Monday sales. For Christmas, the lead time depends heavily on the type of retail industry you’re in – obviously fresh foods have a much shorter lead time, but generally speaking, activity starts ramping up in late October to early November when forward orders are placed on suppliers. Demand can remain high through early December, if sales remain high. Strong sales lead to additional orders, while weak sales bring demand back to normal. When it comes to Easter, the lead time is shorter, usually around four weeks before the holiday. While Easter isn’t as busy as the Christmas period, demand on suppliers is high leading to longer than usual lead times. The level of demand depends heavily on sales performance in the first quarter of the year. Lower sales will result in higher stock levels required by retailers for the Easter period, while higher sales will lead to lower stock levels and will require additional orders.

Q: What are some of the key pain points for both suppliers and retailers during these times?

Increased workload is an obvious one. For businesses who manually process orders, spikes in activity, like for events such as Father’s Day, can result in a surge of manual tasks, like order processing and invoicing. For instance, going from 10 to 40 orders a week creates a substantial workload increase. Businesses using integrated systems experience less strain, as these solutions handle increased activity more efficiently. Web form portals, while helpful, still require manual intervention, which limits scalability. Another pain point is poor communication across the supply chain and inadequate demand forecasting. Without clear forecasts, suppliers struggle to prepare for spikes, leading to congestion at delivery points, such as store backrooms. This also adds to workload pressures.

Q: Why is important to plan ahead for peak periods?

Effective planning and proactive communication are crucial for managing deliveries and meeting demand during peak periods, both for buyers and sellers.
  • Scheduling specific delivery windows helps streamline the process, ensuring smoother operations and avoiding bottlenecks. It means retailers can plan for suppliers’ deliveries, ensuring staff are on hand to receive the goods, and it means the delivery partners aren’t waiting around waiting for stock to be unloaded.
  • Suppliers benefit from analysing retailers' order patterns during busy times and planning accordingly. This preparation reduces the risk of shortages and ensures timely delivery for customers.
  • Retailers can control key aspects by focusing on accurate demand forecasting and providing suppliers with clear, advanced communication. Offering sufficient lead times gives suppliers the best chance to meet expectations.
Proper coordination between retailers and suppliers is key to avoiding disruptions and ensuring a seamless supply chain during high-demand periods.

Q: How does EDI help to ease these pain points?

There are few ways EDI can help during peak times:
  • Eliminating manual data entry for both retailers and suppliers not only saves time but also reduces errors, streamlining operations.
  • Documents like advanced shipping notices and purchase order responses provide retailers with more transparency. These documents offer critical details, such as shipping dates, expected delivery times and what stock can actually be delivered, helping retailers plan effectively.
  • With better visibility, retailers can schedule manpower more efficiently, ensuring resources are aligned with delivery schedules.
  • Having data in an electronic format enables smoother payment processes, such as matching purchase orders, deliveries, and invoices to trigger automatic payments, especially with three-way checking systems.
Overall, automation fosters improved coordination, better planning, and faster payment cycles, benefiting both suppliers and retailers.

Q: How do you ensure your EDI setup can handle an increase in orders during peak times?

A few things to look at are:
  1. System design: An efficient system is built by carefully designing processes that ensure the right messages with the right information are delivered to support visibility and informed business decisions.
  2. Data alignment: Keeping data clean and well-aligned within the system reduces errors, ensuring smooth operations and better decision-making.
  3. Capacity planning: Ensuring that your EDI infrastructure and processes can handle current and future data exchange requirements effectively. This involves running stress tests on high volumes of orders, identifying bottlenecks in processes and other performance tests.
A well-designed and maintained system is key to achieving efficiency and minimising errors in business processes.

Q: When should you start looking to implement EDI or switch EDI providers, given peak times?

There's no one-size-fits-all guidance when it comes to this. The amount of time needed to implement an EDI solution with a provider can depend on things like:
  • whether you're using EDI today or are brand new
  • whether you need to undergo EDI accreditation testing with retailers and/or suppliers, and how involved and lengthy this process is
  • whether you need to adjust internal processes to integrate EDI into business-as-usual operations
  • any training you need to provide to your teams to manage the new processes effectively.
As a very general rule of thumb, it's a good idea to reach out to EDI service providers about three months before your planned go-live date. However, the exact timing can vary, so the earlier the better. When deciding if your EDI provider is a good fit, there are two things to look out for particularly in peak times:
  1. Partnership value: Assess whether partnerships provide value for money and meet service expectations.
  2. System reliability: Digitalising the supply chain is beneficial, but all systems encounter issues at some point. It's important to have responsive support to address challenges promptly and minimise disruptions.
No system is flawless, but proactive planning and strong partnerships can ensure a resilient and efficient supply chain.

Q: Are there other tips you suggest for businesses to get on top of their peak business time pressures?

Take time to plan, it can be hard with pressures of day to day operations but it is important look forward to prepare better for peak times.Want to go through your EDI requirements with an experts? Getting in touch with us below.

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Process for onboarding suppliers to EDI

EDI implementation has many stages, but onboarding is one of the most crucial. The better your supplier onboarding, the greater the automation and efficiency. Here's a quick step-by-step process on how to get the most success during onboarding from our own experience with customers.Check out our Ten Steps to Successful Community Onboarding whitepaper for information about the steps to onboarding success.Want to learn more about our implementation process? Ask our experts by getting in touch below.

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Considering a switch from your current EDI provider? Here’s what you need to know

In today's fast-paced business environment, seamless communication between partners is crucial, and Electronic Data Interchange (EDI) is at the heart of that connectivity. However, just like any technology or service, not all EDI providers are created equal. There may come a time when your current EDI provider no longer meets your needs, and switching providers becomes a necessity. But when is the right time to make that switch, and what should you expect from a new provider? Let’s explore.

When should you consider switching your EDI provider?

Before diving into the logistics of switching, it’s important to recognise the signs that indicate it might be time for a change. Here are a few red flags that signal a switch could be beneficial:

1. Outdated technology

If your current EDI provider is using outdated systems, it can hinder your ability to integrate with modern platforms, slow down transactions, and increase the risk of errors. In today’s digital world, efficiency and speed are paramount. Some EDI providers use outdated software, especially after acquiring competitor companies and not integrating or updating systems. If your provider can’t keep up, it’s time to explore other options.

2. Lack of support and responsiveness

Your EDI system is critical to the smooth functioning of your supply chain. If you find that customer support is slow, unresponsive, or unable to resolve issues promptly, it can cause major disruptions. Delayed support leads to delayed transactions, which impacts your bottom line. Look for providers, like MessageXchange, with a support team based in Australia. This makes it easy for you to talk to someone during office hours. Local support teams also have a better understanding of the requirements of your business and your local partners.

3. Excessive costs or cost model

Your EDI provider should always be looking to make sure you’re getting the best product to add value to your business. Sometimes the cost model of your current provider may not be best suited to your business. Some EDI providers charge per document, per data amount of data and others so it’s important to choose what’s right for you.

4. Compliance issues

Regulatory compliance is critical for businesses exchanging sensitive data via EDI, especially in industries like FMCG/supermarkets, healthcare and finance. It’s also important that your EDI provider keeps up with your trading partner requirements and regulations. If your current provider struggles to meet compliance standards, you may be exposing your company to unnecessary risks and possible downtime.

5. Limited scalability

As your business grows, so should your EDI capabilities. If your current provider can’t scale with your needs—whether that means adding new trading partners, managing larger volumes of data, or supporting new document types—it’s a strong indication that switching to a more scalable solution is necessary.

What to expect from a new EDI provider

Once you’ve identified that switching providers is the best course of action, it’s essential to know what to look for in your new EDI provider. Here are the key features and services you should expect:

1. A modern, cloud-based solution

Modern EDI providers offer cloud-based solutions that ensure your system is always up to date and scalable. A cloud-based platform allows for seamless integration with existing systems, reduces infrastructure costs, and enhances overall system reliability.

2. Strong customer support

Your new provider should offer exceptional customer service with a dedicated support team. Look for providers that offer 24/7 support and multiple communication channels. This ensures that when issues arise, they are resolved quickly, minimising any disruption to your business operations.

3. Cost transparency

Pricing models vary among providers, so choose one with clear, transparent pricing. Avoid providers with hidden fees or overly complicated pricing structures. Most top-tier EDI providers offer flexible pricing based on transaction volume, making it easier for your business to manage costs.

4. Compliance and security

EDI providers must stay on top of evolving security protocols and regulatory requirements. Expect your new provider to adhere to the latest security standards and other industry-specific guidelines, depending on your sector. Security features like encryption, secure data centres, and real-time monitoring should come as standard.

5. Seamless onboarding and integration

Switching EDI providers shouldn’t mean weeks of downtime or data loss. A top-tier provider will have a streamlined migration process that minimises disruption and quickly integrates with your existing systems (ERP, WMS, or accounting software). The transition should feel as smooth as possible for your internal teams and trading partners and there should be no operational impact to your business.

6. Scalability and flexibility

Your new EDI provider should be prepared to grow with your business. Whether you're planning to add new trading partners, handle larger volumes of data, or expand into new markets, the provider should offer scalable solutions to meet your future needs.

EDI migration process

There are a few steps involved in the migration to a new provider
  1. Understand your reason for switching Be clear on why you’re thinking of switching providers. It might be one of the ones we’ve talked about already above, or it might be something completely different. Having a clear understanding of this makes it easier for you to find the right provider who aligns with your needs.
  2. Consult your business It’s important to get relevant areas of your business involved in the switching process. Get a team together so you can ensure you know what all areas of the business need from your EDI solution. Create an integration plan that outlines the steps, timeline, and resources required for successful EDI implementation.
  3. Consult EDI providers Collaborate with other EDI solution providers to define what your requirements are and how they would deliver it. Make sure they understand your existing processes and workflows. Define roles and responsibilities, establish testing procedures, and set realistic milestones for each phase of the integration. Compare each and work out which one is best for your business, think about the points above when making a decision.
  4. Test, validate and refine Testing and validation are crucial to ensure a seamless EDI integration. Collaborate with your retailer partners to conduct testing, including the exchange of sample documents. Validate the accuracy and reliability of data transmission and interpretation. Identify and resolve any issues or discrepancies encountered during testing. Continuous refinement based on feedback and results will help fine-tune your EDI processes and improve overall efficiency.
  5. Go Live Start sending and receiving new messages to and from your partners.
  6. Monitor performance Encourage ongoing learning to ensure your team stays updated with industry trends and advancements in EDI technology. Additionally, implement monitoring and performance tracking mechanisms to assess the effectiveness of your EDI integration and identify areas for further optimisation.

How to get started

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MessageXchange interview series: Getting started with EDI retailer requirements with our EDI specialist, Ellen Tjahjana

Getting started with retailer EDI requirements can be a daunting task. This month, we sat down with Ellen Tjahjana, our EDI specialist who’s worked with many of our EDI customers, to get her insights on starting out with onboarding to EDI.

Q: What are the first things to do when a retailer asks suppliers to comply with their EDI requirements?

Firstly, don't panic. It can seem overwhelming, especially if it's the first time you've been asked, and knowing it's something technical. Our team deal with this all the time and are used to helping suppliers through the process, so we can explain it to you in simple terms, and look after the technical parts for you. I would decide which EDI option is best for you - either a web portal or a fully integrated solution. In short, a web portal is good if you don't receive many orders or if your software can't handle all the EDI messages. For example, MYOB Business and Xero don't support advanced shipping notices. The other option is an EDI Gateway, or EDI that is integrated with your software - typically your ERP software. This means orders will land straight into your software and you action everything from there. The messages you generate in your ERP software, like a response to an order, a shipping notice and an invoice, will go via your EDI provider, to your customer. We've got some good resources on helping you choose an EDI option here. We actually even have some suppliers using a hybrid solution of webforms and integration with their ERP software. So if you think just one solution alone won't help, have a chat to your EDI provider to see if they have a solution for your unique setup. Another things we do fairly often is bring the supplier's 3PL into the process. We can send them a pick request when an order comes in so they can despatch the goods, and even get the ASN from the 3PL to pass back to the retailer. We've implemented a number of different setups, because we know not all businesses operate in the same way. Once you've decided on the right option for you, do some research on the providers and get in touch. Lean on your provider to help you through the process, especially if this is new for you.

Q: Who should suppliers get involved in their EDI project?

This somewhat depends on the option you've chosen. If you're going down the path of EDI webforms, make sure you get the people who will action the orders involved. This could be your accounts receivables team, your warehouse team - anyone who needs to do something in the process. Make sure they understand how to use the product so when you start receiving real orders, they're not slowed down by any learning curve. If you've chosen an integrated EDI solution, you'll often need to get your IT team involved. Sometimes this might be a consultant. And also get those who will action the orders involved. Their processes may not change all that much, but it's good for them to have some background on what happens behind the scenes, in case anything happens.

Q: What should suppliers look for in an EDI solution?

This somewhat depends on the option you've chosen. If you're going down the path of EDI webforms, make sure you get the people who will action the orders involved. This could be your accounts receivables team, your warehouse team - anyone who needs to do something in the process. Make sure they understand how to use the product so when you start receiving real orders, they're not slowed down by any learning curve. Experience is obviously a big factor too. It can help to choose an EDI provider who has connected to your retailer(s) before and are familiar with that retailer's EDI processes. If you're brand new to EDI or don't have much confidence, I'd definitely recommend choose and EDI provider that is willing to help you through the process and 'translate' any technical speak into plain English. Finally, obviously price is a factor, as well as the support they can offer you once your solution goes live.

Q: What are some places to get more information and to learn more about EDI?

We've got some good resources available on our website. For those who are new to EDI, this whitepaper explains, in simple terms, what it is. For those trying to choose which option is best for them, this blog can really help. And finally, we're always happy to speak to suppliers who are just starting out, or even those who aren't new to EDI. So feel free to pick up the phone to us or send us an email.

Q: What other advice would you give suppliers who need to comply with retailer EDI requirements?

I'm going to sound like a bit of a broken record, but I really do suggest you lean on your EDI provider. They're likely to have been through this process many times before and I know we're very happy to explain things and help our customers through the process. Don't be afraid to ask them questions, regardless of how silly you think they might be.Want to go through your EDI requirements with an experts? Getting in touch with us below.

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