EDI in Grocery industry

Grocery

A better Grocery store experience The utilization of EDI has dramatically improved the efficiency of the supply chain of grocery distributors, wholesalers, and manufacturers. The mandates of the system require the suppliers to communicate by using EDI effectively. The ability to monitor data and also identify a unique product together with its origin and the farmer’s location gives the suppliers a chance to isolate potential risks which may lead to severe complications in the system. Most of the financial penalties for negligence and "chargebacks" may be fatal. The utilization of EDI communication between retailers, suppliers, distributors, and brokers can also pose a severe challenge with several complications. EDI exchange ensures that these complications are taken care of, and there is compliance for each trading partners in the Grocery Industry.

Most of the business who has been able to identify the importance of EDI has leveraged on the advantage to increase their profits. It provides a vast opportunity aimed at improving the planning processes which ultimately eliminate errors and reduce waste. The paperless automaton offered by EDI gives you a chance to save money on vital issues such as paper disposal, postage, forms, paper, labor and also takes care multiple manual processes which are prone to errors. The use of improved data accuracy such as those offered by EDI means fewer "chargebacks" and improved vendor performance ratings. It also adds value through the improvement of customer satisfaction. The increased levels of efficiencies accelerate "order to cash" cycles, compressed lead time on orders and faster resolution of the dispute which may arise during the service delivery.

All EDI orders from the grocer to the supplier are executed via 850 or 875 EDI transactions. Although these processes are nearly identical in the types of services offered, the transactions which are completed by the 875 (Grocery purchase order) EDI transactions are particular to the grocery industry, while the 850 EDI purchase order is standard in most industries. Both transactions share a similarity in the line of item numbers, discounts, quantity, prices and shipping instructions. While some grocers support both transactions, some others may have a preference. All the Edi invoices with grocers are very similar. The 810 and 880 transaction types are very similar.
The 880 invoices are related to the 875 purchase order.
The 810 invoices are related to the 850 purchase order