Solutions

Time is money, and that’s never been truer than with companies in the distribution industry. Regardless of how smoothly a supply chain runs in theory, a lack of transparency can prevent the efficiency and performance levels necessary for prolonged success. This can arise from inaccurate or incomplete data across global supply chains. For the logistics industry specifically, this is an issue that needs to be overcome to ensure accurate and on-time deliveries, particularly with customers that increasingly want to track shipments and get updates in real-time.

EDI distribution solutions have the power to dramatically accelerate and streamline vital processes within your supply chain. Without EDI enabled distributors in place, moving inventory typically requires quite a few steps, anything from a buyer writing up a purchase order to a supplier manually entering it into the shipping system. EDI speeds up this arduous process.

Through EDI, purchase orders can now be transmitted directly to the supplier through an electronic network, and the supplier then receives the order almost instantly. Because of these lightning-fast EDI distributor transactions, items can often ship the same day the order is sent, speeding up the sending of invoices and in turn, payments.

Electronic Data Interchange (EDI) software enables organizations to automate EDI processes, simplify workflows, and reduce errors in document transfer processes. By using modern B2B EDI software, organizations are able to resolve issues caused by manual processes like :

• Redundancies - As your orders increase or as you expand into eCommerce, some of your existing manual processes will likely become unmanageable over time.
• Inefficient System Integration - If employees are spending hours converting files, copying and pasting - or finding ways to stuff data from one system to another - your company is experiencing losses.
• Bottlenecks - Add Automation That Will Eliminate Bottlenecks. In today’s fast-paced world, responding quickly to changing customers or market dynamics is a competitive advantage. Flowwolf handles EDI communications that are compliant with the business rules of your trading partners and shippers, avoiding compliance issues and processing errors. Send purchase order Pdfs, Bill of Lading, proof of delivery and many more documents in near-real-time.
• Troubleshooting / Error Resolution -
• Reporting -

WHAT IS THE BEST WAY TO GO ABOUT IT?
‍Providing access to all logistics-related information through automation is the best approach to ensure an error-free transaction. Automation of data interchange benefits not just in-house logistics, but also the entire supply chain by putting all data at their fingertips. This is where EDI comes in, which is a means for completing business system integration in order to support EDI document or data interchange.

‍WHAT IS Electronic Data Interchange?
‍EDI (Electronic Data Interchange) is a computer-to-computer interchange of business information and documents between business partners in a common electronic format. These documents can include shipment notes, invoices, purchase orders, and delivery notes, among other things. EDI aids in the elimination of human errors cost savings, and the reduction of manual processes while connecting effectively with the appropriate parties.

‍EDI IS A MUST For LOGISTICS BUSINESS
‍In supply chain management, Electronic Data Interchange is used to coordinate the transfer of a variety of documents such as BOLs, customs documents, shipment status documents, routing instructions, invoices, and so on. Transactions are readily simplified and structured with Electronic Data Interchange, and it also aids in the automatic generation and distribution of invoices and dispatches information without the need for manual data entry.

The advantages of EDI in the logistics industry:

• Document exchange in real-time: All information can be transmitted instantly and in real-time amongst stakeholders.
• Avoid human interference: Without human interaction, the information conveyed is more accurate, and faster confirmation is ensured.
• Cost and Time Savings: Using an EDI system to replace a paper-based process that cost more and required more effort and time from stakeholders resulted in time and cost savings. EDI encourages paperless transactions, which are environmentally favorable because they eliminate waste.
• Transactions between parties are faster: thanks to EDI, communications have grown faster, resulting in shorter sales cycles, faster order processing, and more customer confidence as the company’s ability to deliver on time and with superior service grows.
• Moving the business forward: Time and effort savings help enhance sales, while real-time data ensures accuracy in all transactions. The company makes a lot of money after implementing EDI.

With EDI and its possibilities, it’s clear that businesses may benefit from worldwide connectivity and a bigger network for the logistics industry, and as more organizations adopt this technology, it will result in an unstoppable supply chain.

EDI Transmission

The final stage of understanding how EDI works is to connect and begin transmitting your EDI documents with your trading partners. Once your documents have been translated internally to the compliant EDI format, they are ready to be transmitted to each of your trading partners. There are a few ways to do the translations:

• Direct connection using AS2 or another secure internal protocol
• Connecting through an EDI network provider (VAN) using your agreed-upon - communication protocol and using the network provider to connect to your trading partner with their standards.
• Some communication methods will be a combination of both, depending on your trading partners’ specific requirements.

This is the foundation on which electronic data interchange operates.

EDI Transactions currently in the Flowwolf bucket

EDI is a proven technology that powers many of the complex and modern business processes that we take for granted every day:

‍Here are a few important EDI transaction currently being handled by Flowwolf.

• EDI 204: Motor Carrier Load Tender
• EDI 210: Motor Carrier Freight Details and Invoice
• EDI 214: Transportation Carrier Ship. Status Message
• EDI 990: Response to a Load Tender
• EDI 997: Functional Acknowledgment

What is an EDI 204?

EDI 204, also known as Motor Carrier Load Tender, is an electronic data interchange document used by shippers to offer, or tender, a truckload or less than truckload shipment to a carrier. A shipper can be a manufacturer, a distribution center, a retailer, or anyone else wishing to ship goods. A carrier is generally a freight provider, such as FedEx Freight, Old Dominion, or UPS Freight.

EDI 204 documents follow the x12 format set by the American National Standards Institute (ANSI), a not-for-profit organization that regulates EDI formats in the U.S.

‍What are the Essential Components of EDI 204?
‍An EDI 204 document must include several essential pieces of information regarding a potential shipment, in order to allow the carrier to reasonably decide if they want to accept the tender. Details which may be present in EDI 204 include:

• Shipper and receiver identification information, such as names, addresses, and vendor ID numbers
• Shipping instructions, including pickup and delivery window, and any special pickup or delivery requirements.
• Equipment requirements, such as truck carriage size and length
• Load details, including lading quantities, dimensions and weight

What other transactions are used alongside the EDI 204?
‍After an EDI 204 is sent by the shipper, this initial interaction will set off a set of EDI transactions in response:

1. EDI 204 tenders an offer for a shipment to a carrier
2. The carrier responds with an EDI 990 Response to a Load Tender transaction set, indicating whether it accepts or declines the offer to tender a shipment
3. If the tender is accepted by the carrier, the carrier will then send an EDI 214 Shipment Status Report to inform the shipper of pick-up and delivery information.
4. Finally, an EDI 210 Motor Carrier Freight Details and Invoice is sent by the carrier to the shipper or consignee to request payment for freight charges. The EDI 210 replaces a paper invoice.

What is an EDI 210?

EDI 210, also known as a Motor Carrier Freight Details and Invoice, is sent by a commercial carrier (such as UPS Freight) to a shipper (such as a manufacturer or distributor), to convey billing details related to a freight shipment. This EDI transaction set offers an electronic replacement for fax, mail, or email invoices.

EDI 210 documents follow the x12 format set by the American National Standards Institute (ANSI), a not-for-profit organization that regulates EDI formats in the U.S.

‍What are the Essential Components of EDI 210?
‍Just like a paper invoice, the EDI 210 Motor Carrier Freight Details and Invoice transaction set needs to include several pieces of information about each order. These may include (but are not limited to):

• Date of Invoice and Invoice number
• Product types and quantities
• Shipment size and weight
• Shipping method
• Delivery details
• Shipper information, such as name and address
• Recipient information, such as name and address
• Proof of delivery
• Route details
• Freight and Accessorial charges
• Total amount due
• Payment terms

EDI 210 transaction exchange

1. First, an EDI 204 Motor Carrier Load Tender tenders an offer for a shipment to a carrier
2. The carrier responds with an EDI 990 Response to a Load Tender transaction set, indicating whether it accepts or declines the offer to tender a shipment
3. If the tender is accepted by the carrier, the carrier will then send an EDI 214 Shipment Status Report to inform the shipper of pick-up and delivery information.
4. Finally, an EDI 210 Motor Carrier Freight Details and Invoice is sent by the carrier to the shipper or consignee to request payment for freight charges.

What is an EDI 214?

The EDI 214 Transportation Carrier Shipment Status Message is an electronic data interchange (EDI) transaction code sent by a carrier, such as a trucking company or third-party logistics company (3PL) to a shipper and/or buyer, to let them know the status of their shipment.

EDI 214 documents follow the x12 format set by the American National Standards Institute (ANSI), a not-for-profit organization that regulates EDI formats in the U.S.

‍What are the Essential Components of EDI 214?
‍EDI 214 must include several pieces of information regarding the shipment in question. These include, but are not limited to:

• Purchase Order number
• Shipper, carrier, and receiver contact information
• Shipment details, including products, packaging, and load information
• Pickup and destination addresses
• Route information
• Expected delivery or ETA
• Proof of delivery, when applicable
• Shipment status details, including reasons for delay or changes where applicable

It’s important that the load information on the 214 document matches other documents relating to the order, including the EDI 850 Purchase Order, EDI 204 Motor Carrier Load Tender, and EDI 211 Motor Carrier Bill of Lading, and others.

As with just about every EDI transaction, the shipper that receives an EDI 214, may choose to send an EDI 997 in response, but this is often superfluous. Some trading partners may require the extra step.

‍EDI 214 transaction exchange

1. First, An EDI 204 Motor Carrier Load Tender is sent by a shipper, often a retailer, to offer or tender a truckload to a carrier.
2. Second, an EDI 990 Response to a Load Tender to indicate that you will pick up the shipment offered by the shipper.
3. Third, flowwolf’s cloud-based EDI platform generates an EDI 214 Transporation Carrier Shipment Status to inform the shipper of the status of the goods being transported.
4. Fourth, after the successful delivery of the shipment, your flowolf EDI platform will send an EDI 210 Motor Carrier Freight Details and Invoice transaction set, providing details of freight charges to be paid by the shipper.

What is an EDI 990?

EDI 990 is a type of EDI transaction set used by a motor carrier to accept or reject a shipment offer from a shipper. This document is usually triggered by the receipt of an EDI 204 Motor Carrier Load Tender transaction.

EDI 990 documents follow the x12 format set by the American National Standards Institute (ANSI), a not-for-profit organization that regulates EDI formats in the U.S.

‍What are the Essential Components of EDI 990?
‍An EDI 990 document must contain both a specific response, along with identification details for a specific shipment. Important parts of EDI 990 include:

• Shipment Identification Number
• Shipper and Carrier Contact Information
• Indication of Acceptance, Rejection, or Acceptance with Conditions
• A Reason for Declining (Where Applicable).

One of five responses may be communicated using an EDI 990:

• Tender accepted
• Tender declined
• Tender accepted with conditions
• Spot bid request accepted
• Spot bid request declined

EDI 990 transaction exchange

1. First, an EDI 204 Motor Carrier Load Tender tenders an offer for a shipment to a carrier
2. The carrier responds with an EDI 990 Response to a Load Tender transaction set, indicating whether it accepts or declines the offer to tender a shipment
3. If the tender is accepted by the carrier, the carrier will then send an EDI 214 Shipment Status Report to inform the shipper of pick-up and delivery information.
4. Finally, an EDI 210 Motor Carrier Freight Details and Invoice is sent by the carrier to the shipper or consignee to request payment for freight charges.

What is an EDI 997?

EDI 997, also known as a Functional Acknowledgement, is used by trading partners to confirm the receipt of other EDI documents. EDI 997 is usually fully automated and lets the sending party know that an EDI transaction was received by their partner’s EDI translation software.

EDI 997 documents follow the x12 format set by the American National Standards Institute (ANSI), a not-for-profit organization that regulates EDI formats in the U.S. For businesses using the EDIFACT standard, the equivalent of EDI 997 is the CONTROL message.

What are the Essential Components of EDI 997?
‍Normally, EDI 997 Functional Acknowledgements are very basic documents. The main elements in an EDI 997 are:

• Received EDI transaction code
• Indication of acceptance, acceptance with errors, or rejection
• List of erroneous elements and reason for the error(s)

EDI 997 Transaction Exchange
‍Because the EDI 997 is used after receiving any EDI transaction, you can see the EDI 997 is embedded within the flowwolf Integration Cloud platform following every single transaction. Benefits of the EDI 997 include:

• Acknowledgment of document arrival/reception
• Time to investigate possible system issues
• Time and money saved due to improved order exchanges

AS2
‍
One of the most popular methods for transporting edi data securely and reliably over the internet in a point-to-point manner.

With AS2 (applicability statement 2), data such as EDI, XML, and others are sent and received via the internet using an HTTP protocol (TCP/IP) through a certified server. AS2 is one of the most popular methods for transporting data, especially EDI data, securely and reliably over the Internet. It essentially involves two computers – a client and a server – connecting in a point-to-point manner via the web. AS2 creates an “envelope” for the EDI data, allowing it to be sent securely – using digital certificates and encryption – over the Internet.

EDI via AS2 requires the receiving organization’s server to be always “listening out” for messages addressed to it. Like a call to a phone with no answering machine, the message will be missed if your server is not available to take the call. Flowwolf EDI network provides AS2 connectivity and thus always be available to receive the EDI transmissions.

Using Flowwolf EDI network for your AS2 needs provides the following benefits: