As you review your end of year expenses and prep for taxes – are you noticing higher EDI expenses?
It’s no wonder so many suppliers are looking for software to help keep EDI expenses under control as many are now expected to dropship to customers on behalf of their sales channels. Increased number of shipments equate to increased EDI expenses, which may be eating up your profits from the increased volume this past year!
What is EDI & Why is it Free with OPAL?
Electronic data interchange (EDI) provides a standard method of communicating data between businesses with the purpose of making this data transfer more efficient, accurate and in the correct EDI format. EDI providers integrate with ERPs and accounting software to process orders between your eCommerce business and your sales channels.
As business continues to shift away from a few bulk shipments to retailers to many individual shipments of parcels directly to customers, EDI compliance has increased in both importance and cost. Drop shipping can be quite costly when compared to pallet shipping because there are at least four transactions required for every single order – which can add up to as many as five or six transactions.
OPAL connects to all retailers, suppliers and warehouses without the need for third-party document charges, allowing your eCommerce business to focus on how efficiently your team can pick, pack and ship.
Why is EDI Still Around?
According to the interview of Joe Cicman, senior analyst for ecommerce and digital transformation at Forrester Research, EDI accounted for 78.4% — $7 trillion – of all B2B electronic sales. Even though EDI has been around since the 1960s, it still remains a critical component of business today.
Communication Between 2 ERPs
EDI is at its core – a file format – that two enterprise resource planning (ERP) and accounting systems use to talk to each other. It is formatted so that all of the data syncs properly and keeps an accurate representation for both suppliers and sales channels for successful eCommerce.
Adoption of EDI Mandated by Larger Marketplaces
Larger retailers and marketplaces are the front-facing brand with brand standards and expectations that must be upheld by their suppliers. By mandating EDI compliance as a part of all other expectations, it requires suppliers to be up to par when doing business on this larger scale.
Maintains Integrity of Data
By requiring a standard format and transference of data, it also ensures the integrity of the data for both suppliers and retailers. As huge growth in eCommerce continues, both can trust the data processes in place to provide an accurate representation.
Simplify with OPAL’s 4-in-1 Software Solution
EDI | Order Management | Warehouse Management | Shipping
As your business looks to lower EDI costs this year and simplify backend ordering and shipping processes, simplify with OPAL and receive unlimited EDI without transaction charges.
OPAL is the innovative solution to simplify your small to mid-sized to enterprise business fulfillment needs in today’s rapidly transforming retail world.
To learn more about how to optimize your eCommerce business with OPAL, click here!
Click here to book your customized demo today. We are here to support you through this time of change and are here to help you innovate and thrive!