How Will TMS EDI Integration Improve Your Customer Relationships?
- May 22, 2023 / by Infocon Systems
Learn why TMS EDI is becoming a popular choice among businesses due to its accessibility, maintenance, customization, and affordability.
What is TRANSPORTATION MANAGEMENT SYSTEMS (TMS)?
TMS stands for Transportation Management System. It is a software platform that helps businesses manage and optimize their transportation and logistics activities operations, including the movement of goods, shipping, and delivery. A TMS can help businesses to improve operational efficiency, reduce costs, and enhance customer service by providing better visibility and control over transportation processes.
TMS software can include a range of functionalities, such as route optimization, carrier selection, load planning, order tracking, freight audit, and payment processing. A TMS can also integrate with other business systems, such as warehouse management systems (WMS), enterprise resource planning (ERP) systems, and customer relationship management (CRM) systems, to provide end-to-end visibility and control over the entire supply chain.
What is Electronic Data Interchange (EDI)?
EDI stands for Electronic Data Interchange, which is the exchange of business documents between computer systems using standardized formats. EDI has been used for decades as a way for companies to exchange electronic documents such as purchase orders, invoices, and shipping notices with their trading partners.
EDI allows companies to streamline their supply chain processes, reduce manual data entry, and improve the accuracy and speed of transactions. EDI also provides a way for companies to integrate their systems with their trading partners' systems, creating a more efficient and effective supply chain.
EDI standards have evolved over time, with the most widely used standard being ANSI X12 in North America and EDIFACT in Europe. More recently, web-based technologies and APIs have been developed to supplement or replace EDI, but EDI still remains a critical tool for many businesses.
TRANSPORTATION MANAGEMENT SYSTEMS (TMS) and EDI
TMS EDI refers to the integration of EDI (Electronic Data Interchange) technology with a TMS (Transportation Management System). By integrating EDI with a TMS, companies can automate their transportation operations by exchanging shipment data and other information electronically with carriers, brokers, and other trading partners.
TMS EDI with LSPs can support a wide range of transaction sets, such as load tendering, shipment status updates, proof of delivery, and freight invoice reconciliation. This allows shippers and their LSPs to work together more efficiently and effectively, improving supply chain performance and reducing costs.
TMS EDI Setup Process
- Determine the required EDI transaction sets: Identify which EDI transaction sets will be used in the TMS EDI integration. This may include load tendering, shipment status updates, proof of delivery, and freight invoice reconciliation.
- Choose an EDI provider like Infocon Systems: As a leading EDI provider of fully managed data integration services for logistics and the global supply chain, Infocon Systems has extensive data connectivity and data management experience. Our solutions are capable of working with various data formats, standards, and interfaces.
- Define data mapping and communication protocols:Define how data will be mapped between the TMS and EDI systems and establish the communication protocols for exchanging EDI documents.
- Test the integration:Conduct testing to ensure that the TMS EDI integration is functioning correctly and that data is being transmitted accurately between the systems.
- Implement the integration:Once the testing is complete, the TMS EDI integration can be implemented and put into production.
- Monitor and maintain the integration:Regularly monitor the TMS EDI integration to ensure that it continues to function properly and address any issues that may arise
How Long Does TMS EDI Take To Set Up?
The time it takes to set up TMS EDI can vary depending on a variety of factors, such as the complexity of the integration, the number of transaction sets being implemented, and the availability of resources from both the TMS and EDI providers. Typically, the setup process can take several weeks to several months to complete.
During the setup process, there are several steps that need to be completed, including identifying the required transaction sets, selecting an EDI provider, defining data mapping and communication protocols, testing the integration, implementing the integration, and monitoring and maintaining the integration. Each of these steps requires careful planning and coordination between the TMS and EDI providers, which can take time to complete.
It's important to keep in mind that while TMS EDI integration may take some time to set up, the benefits of increased efficiency, improved accuracy, and streamlined communication can often lead to significant cost savings in the long run.
Transaction Sets with TMS EDI
- EDI 204 (Motor Carrier Load Tender) OUTBOUND
- EDI 210 (Motor Carrier Freight Details and Invoice) INBOUND
- EDI 214 (Transportation Carrier Shipment Status Message) INBOUND
- EDI 990 (Response to a Load Tender) INBOUND
To learn more about how Infocon Systems can take care of your EDI needs for TMS EDI, please don’t hesitate to give us a call at +1 888-339-0722 or email sales@infoconn.com. We’d love to hear from you.