Everything about EDI

Electronic Data Interchange (EDI) is a standardized electronic communication system that enables businesses to efficiently and accurately exchange business documents, such as orders, invoices, and shipping messages, between different trading partners. It replaces the traditional paper-based process and utilizes standardized message formats, facilitating seamless communication between businesses. Read more about what EDI is and the role FashionUnited eBusiness plays in enhancing these processes for you.


Communication

Increase efficiency 

Reducing errors

Better service

 What is EDI?

EDI contains various aspects, but at its core, it revolves around translating and directly communicating different messages. Companies in the fashion industry do not all communicate in the same language and, consequently, not with the same systems. Even companies joining FashionUnited eBusiness do not speak the same language. This can sometimes make it challenging and costly for two companies to communicate effectively. The goal is, of course, to facilitate easy communication between various trading partners. Using an EDI system, different messages and information are converted into a format understandable to the partners. Once the system recognizes the formats and can read the messages, they can be sent to the parties that need to receive them. The EDI system ensures that the retailer and supplier have constant insight into different processes, providing a clearer overview of everything the company is engaged in.

 EDI at FashionUnited eBusiness

FashionUnited eBusiness is a forward-thinking company specialized in supporting the fashion industry in implementing EDI solutions. We offer a variety of services designed to significantly improve the efficiency of business processes. Below are some ways in which FashionUnited eBusiness can assist in implementing EDI in the fashion industry:

  1. Item data: 60% faster and more accurate: as soon as the pre-order is given out the supplier will send the item data of the products towards the retailer. All products are identified with a GTIN (Global trade information number) the basic information of the products can’t be changed. This can be done as well with a full product feed where the change updates are synchronized each day. Certain fields within the product data are mandatory and need to be controlled.
  2. Order Entry – 80% automated: as soon as the pre-order is entered into the system of the supplier the conformation of the order is send towards the retailer. If possible order confirmations need to be split on shop level and the possibility of various warehouse delivery addresses.
  3. Receiving goods administration – 80% automated: before the good are physically delivered to the retailers warehouse the delivery need to notified. The delivery is, when possible, identified by a so called SSCC number per package. This identifies the delivery within the package while scanning the barcode on the package.
  4. Check receiving goods – 50% quicker: only certain suppliers, mainly with bad logistic delivery, are manually controlled. The most deliveries are automatically put into the system.
  5. Price and labelling – 100% automated: goods should be pre-priced with a suggested retail price, labelled (when applicable) and prepacked per shop. Retailers who use dynamic pricing will not need labelled price tags.
  6. Cross Docking to warehouses and shops– 100% automated: when the order is given on shop level and the boxes are identified by SSCC number the goods go be delivered directly to the ultimate shop.
  7. Invoice entry - 90% automated: the electronic invoice will be put into the system with a high accuracy, in detail on model, color and size. No entry of invoices is needed.
  8. Invoice details reconciliation – 100% automated: the detailed invoice an be checked on price (with the order confirmation) and quantity (on dispatch advice en order confirmation) on mango or surplus.
  9. Product availability – better performance: the sales information on stores level are monitored and combined with the inventory in the stores and the availably of replacement stock gives a new dynamic entry between suppliers and retailers. Suppliers can react on the actual figures
  10. Branded retail – new ways of business: the sales information in combination with stock level on store and warehouse makes it possible to start new business models. The performance of the retail will grow extremely.
    Concession and Consignment: certain product of the assortment are totally management by the supplier. Goods are only transferred to the retailer when the goods are actually sold to the consumer; Vendor management Inventory: the retailer is owner of the goods on the shop level but the supplier is responsible for managing the stock within each store. By checking the sales goods are replenished. Goods with bad sales are replaced with new products. Returns are credited; 
    Long tale: the complete collection, or at least al lager part than the retailer has on stock, of the supplier is put into the system of the retailer and made available for the retailers collection. When the goods are sold the goods are delivered to the retailers to pass on to the consumer;
    Drop shipment: orders taken by the retailer can be delivered directly to the consumer. The ultimate delivery information of the consumer need to be in the order towards the supplier to make it possible to deliver.
  11. Replenishment basics – 100% automated: this business achievement is specially for the NOS (or NOoS) assortment. The back office of the retailer can automatically create a purchase order regarding the stock level within the shop(s) or warehouse of the retailer. This will be done to take the minimum order quantity and the minimum order value. Suppliers need to be flexible with order delivery costs to avoid small orders.
  12. Qualified product data via a PIM system - 100% Product Quality: to made omnichannel business possible the quality of the product data is key and the responsibility of a brand owner. Via the PDE/PIM of FashionUnited eBusiness the products will be included with extended master/meta data like various details for the consumer website, weight and size and not to mention photo’s and multimedia. FashionUnited offers a free service for small suppliers to register their product data on the system.

In summary, we offer specialized support in implementing EDI in the fashion industry, enabling companies to benefit from more efficient business processes, lower costs, and improved customer service. With the right EDI solutions, fashion businesses can gain a competitive advantage in an industry that increasingly demands speed, precision, and efficiency. FashionUnited eBusiness is committed to supporting customers in achieving the above points.

 

Wondering which package suits your company?

Explore the various EDI options for both retailers and suppliers with our different packages.