If you could increase agility, reduce errors, reduce costs, and improve security in the exchange of information between carrier and shipper, what would the result be? It would certainly increase your competitiveness in the market.
The technology capable of providing all of these benefits is known as EDI integration. It can be adopted by businesses through the implementation of specialized management systems that support this technology.
In this article, we explain the concept and how EDI integration works to help you learn more about the topic. In addition, we bring the benefits to carriers and shippers, advice on how to implement this modernity and, ultimately, how Datamex solutions help in the process. Check!
What is EDI integration and how does it work?
It is necessary to better understand the functioning of EDI Transportes, which is the standardization of data exchanges between two systems in the field of transport and logistics. Usually, the PROCEDA standard is used, which consists of a set of formats for organizing and exchanging information between systems. This standard allows companies to exchange different information, such as:
- billing data (NOTFIS);
- bill of lading (CONEMB);
- events and occurrences in deliveries (OCOREN);
- knowledge for payment (DOCCOB);
- collection and delivery requests (SOCEN);
- billing invoice mirrors (PREFAT).
The subject being quite vast, you can deepen it by reading our articles which enlighten you more on the EDI PROCEDA, its standards and its archives. As for EDI integration, it is the use of technologies that automate the exchange of information between the carrier and the shipper.
This is done when different systems supporting EDI layout are interconnected. It will not be necessary to enter the data manually and transmit it to your partner: the management platforms ensure the transmission, reception and use of information, without the need to enter manually.
For example: the systems will issue bills of lading to the shipper, who will notify the amounts released for billing and payment to the carrier, who in turn will resend the invoices to the shipper. All of this is done quickly and reliably.
What are the advantages of EDI integration for the carrier?
All the advantages arise from the fact that various activities are carried out by the management systems, based on the use of the information received. Check the most relevant for the carriers.
Safety in operations
Employees often make typing and calculation errors, delay sending information, forget to enter certain data, among other mistakes. This can happen because of stress or because the work is too repetitive or tiring. But this still poses many problems for the organization and harms the relationship with the shippers.
However, management systems that support EDI integration eliminate the need to enter documents and transmit information without incurring the errors listed. Thus, they contribute to increasing the quality and productivity in the supply chain, as well as to a healthier business relationship.
EDI integration allows the carrier to save money in a number of ways. The main ones are:
- administrative costs, which are personnel costs, decrease;
- the same applies to expenses for paper, printed matter, shirts, inks and other materials;
- Infrastructure costs are also reduced as documents are stored on servers and even in the cloud;
- reduction in expenses with rework and errors.
Employees will no longer need to spend time on purely bureaucratic activities, such as entering, sending documents, verifying data, etc. In addition, the need to rework due to errors is eliminated.
This allows employees to focus more on strategic and urgent activities. Technology also helps you grow your operations faster, adding more value to your team’s working hours.
The use of EDI integration and carrier management systems improves communication between companies in several ways:
- increases transparency in the exchange of information;
- makes communication more agile;
- improves security by preventing erroneous data transmission;
- it standardizes the structure of the forms, which avoids data incongruity and erroneous reading of information, etc.
What are the benefits for shippers?
It’s not just the carrier that benefits from systems integration. Senders will also benefit from several advantages, such as:
- more transparency, security and agility in sending and receiving data;
- reduction of business errors, risks and costs;
- automation of bureaucratic operations, maximization of staff efficiency;
- eliminating the need to enter data in cargo audit, making the procedure more secure.
How to implement this integration?
First, understand that EDI integration involves two or more companies. Therefore, it cannot be done on the basis of the decision of only one of the trading partners.
Inform partners and their collaborators
You should let your business partners know about the possibility of EDI integration and its benefits. Also develop an organizational culture focused on innovation – to make sure people embrace the technologies – and explain how EDI works. This step is necessary to ensure that all the advantages of modernity flow to both companies.
Structure the flow of information
Define the information that will be exchanged between organizations and those responsible for the activity. Then develop or activate and configure the integrations in both systems, following the chosen models. The most common is PROCEDA.
In this phase, it is still necessary to establish how the data will be sent (by email, FTP, VAN or Webservices) and its frequency. Note that each file may require a different repetition, depending on its characteristics.
Businesses will need to make changes to their systems to support defined EDI layouts. It is recommended to adopt a management platform that already includes the possibility of doing this integration, either with the PROCEDA standard, or with more specific standards.
Train the team and take tests
Finally, train the employees who will use the management systems and create a trial period. Note all integration issues and take appropriate action to resolve them. After adjustments do another test to make sure everything is working properly.
How do Datamex solutions help in this process?
Datamex has developed a transport management system (TMS or transport management system) with native support for EDI and Webservices technologies, and which provides a complete and flexible platform with plans that meet the needs of companies of all kinds. cut.
TMS Datamex already integrates financial management, fleet control, CTe transmitter, among other tools, with the best cost-benefit ratio you can find. This system has full integration via EDI between carriers and shippers, enabling the collection and delivery of information quickly, securely and economically. Each operation will be recorded in the system, which guarantees a wide control by the managers.
EDI integration is very beneficial as noted above. However, both companies will need to adopt the technology and use a management system compatible with EDI, PROCEDA and other layout standards.
Contact Datamex now to learn more about our TMS. We have plans to suit businesses of all sizes!