Walmart is a multinational retail corporation that operates a vast network of hypermarkets, discount department stores, and grocery stores. Walmart is known for its extensive retail operations, offering a wide range of products, including groceries, clothing, electronics, household goods, and more. EDI compliant is often a prerequisite for doing business with Walmart to enhance operational efficiency and collaboration within the supply chain. By requiring suppliers to be EDI compliant, Walmart ensures efficient and accurate data exchange, reduce manual data entry and errors, and improve overall supply chain visibility.
What Is Walmart EDI?
Walmart's EDI system is a standardized method of exchanging business documents and data electronically between Walmart and its suppliers. EDI, or Electronic Data Interchange, is a standardized method for electronically exchanging business documents and data between organizations. Walmart EDI enables the transfer of structured information in a format that both sender and receiver's computer systems can understand. EDI process comprises two key components: translation and communication.
Translation: In the translation part of EDI, the business document (e.g., a purchase order, invoice, or shipping notice) is converted from its native format into a standardized EDI format.
Communication: In this phase, the newly formatted EDI document is electronically transmitted to the intended recipient, typically over secure and standardized communication protocols such as AS2, FTP, or other methods.
There are various communications EDI methods available but the method is used by Walmart and their suppliers is EDIINT AS2. EDIINT (Electronic Data Interchange-Internet Integration) is a protocol used for secure and standardized exchange of electronic business documents over the Internet. As per Walmart's guidelines, if a business does more than 5,500 invoices per year then it must do EDI through AS2 protocol. Businesses less than 5500 invoices per year may either choose EDI or opt-out.
There is a large number of standardized EDI formats available, Walmart supports following EDI formats:
- American National Standard Institute X12 (ANSI X12)
- Uniform Communications Standards (UCS)
- Voluntary Inter-Industry Commerce Standard (VICS)
Walmart believes that EDI adoption among its business partners is essential for optimizing operational efficiency, reducing operational costs, and enhancing the overall customer experience by streamlining the supply chain and reducing errors.
What are Connection Types for Walmart EDI ?
Walmart supports many connection types with an EDI system. They are:
- AS2: AS2 or Applicability Statement 2 ensures the secure, encrypted, and authenticated transfer of data, making it suitable for sensitive business information, such as purchase orders, invoices, and shipping notices. Walmart exchanges EDI files with a direct AS2 connection with the DSV (drop-ship vendor).
- Value-added Network (VAN): VANs enable the secure and reliable transmission of electronic data between trading partners. Walmart sends vai VAN but does not impose strict control or specify how the 3PL should process or manage that data.
- SSH File transfer protocol (SFTP): It is a network protocol provides a secure way to transfer files and perform file management tasks over a secure shell (SSH) connection. Walmart exchanges EDI files with a direct SFTP connection with the DSV.
How to Set up EDI with Walmart?
Walmart EDI enables the transfer of structured information in a format that both sender and receiver's computer systems can understand. Setting up Electronic Data Interchange (EDI) with Walmart involves several steps and requires coordination between your business and Walmart's EDI team. Here's a common steps to set up EDI with Walmart:
- Contact Walmart's EDI Team: Begin by reaching out to Walmart's EDI team or your Walmart buyer/merchandiser to express your interest in setting up EDI.
- Understand Walmart's Requirements: Familiarize yourself with Walmart's specific EDI requirements and standards. These may include document formats, communication protocols, and compliance guidelines.
- Choose an EDI Solution: Select an EDI solution that aligns with Walmart's requirements
- Testing and Compliance: Before fully implementing EDI, you'll typically need to go through a testing and compliance phase. This involves sending test EDI transactions to Walmart to ensure your system aligns with their standards and can exchange data seamlessly.
- Obtain VAN Services (if required): If Walmart uses a VAN (Value-Added Network) for EDI communications, you may need to contract with a VAN service provider.
- Establish Communication Method: Set up the chosen communication method for transmitting EDI documents. This can include AS2, FTP, SFTP, or other secure protocols based on Walmart's requirements.
- Document Mapping and Translation: Configure your EDI system to translate your internal data into the standardized EDI format used by Walmart. Ensure that the mapping of data elements and document structure matches Walmart's requirements.
- Exchange EDI Documents: Once your EDI system is set up and compliant, you can start exchanging EDI documents with Walmart.
- Ongoing Support and Maintenance: After implementation, provide ongoing support for your EDI system. Monitor for any issues and updates to ensure continued compliance with Walmart's EDI standards.
Setting up EDI with Walmart can be complex, and it often involves collaboration with a leading third-party EDI service provider. It's important to have a clear understanding of Walmart's specific requirements and to work closely with their EDI team throughout the setup process to ensure a successful and compliant implementation.
How do you become Walmart EDI compliant?
Walmart, like many major retailers, has specific requirements and standards that suppliers must adhere to when using Electronic Data Interchange (EDI) for business transactions. These requirements are subject to change over time, so it's essential to consult Walmart's official EDI documentation and communicate with their EDI support teams for the most up-to-date information. However, here are some typical requirements for Walmart EDI:
To become an approved Walmart EDI compliant, a supplier must obtain access to the retail link; read, follow and understand all the available documentation; choose a preferred computer software, install it, and complete all the internal testings; obtain the GEM mailbox and the upload/download security certificate; and complete applicability statement 2 (AS2) testing.
What are Common EDI Documents for Walmart?
Walmart typically requires suppliers to use several key EDI (Electronic Data Interchange) transaction sets for conducting business with the company. These transaction sets are standardized and facilitate the exchange of important business documents and data between Walmart and its suppliers. The specific required transaction sets may evolve over time, but here are some of the common ones:
- EDI 850 (Purchase Order): The EDI 850 transaction set is used by Walmart to send purchase orders to its suppliers. It includes information about the products or services ordered, quantities, prices, and delivery requirements.
- EDI 810 (Invoice): Suppliers use the EDI 810 transaction set to submit invoices to Walmart. It contains details of the products or services provided, their costs, and payment terms.
- EDI 856 (Advance Ship Notice): This transaction set is used by suppliers to send advance ship notices to Walmart. It includes information about shipments, expected delivery dates, carrier details, and itemized contents.
- EDI 846 (Inventory Inquiry/Advice): The EDI 846 transaction set is used for inventory updates. Suppliers can provide Walmart with information about product availability, stock levels, and changes in inventory status.
- EDI 832 (Price/Sales Catalog): Suppliers use the EDI 832 transaction set to update Walmart on their product catalog, including new items, pricing changes, and product discontinuations.
- EDI 812 (Credits and Debits claims): Walmart uses the EDI 812 transaction set to provide credit and debit adjustments to suppliers. It helps resolve discrepancies in invoices, issue refunds, or make adjustments to previously agreed-upon transactions with suppliers.
- EDI 820 (Advice related to Remittance): EDI 820 includes information such as the payment amount, invoice numbers, and payment method, allowing suppliers to reconcile their accounts and manage their finances more efficiently.
- EDI 997 (Functional Acknowledgement): Walmart uses EDI 997 to confirm the receipt and validate the quality of incoming EDI documents from suppliers.
Will EDI integration significantly benefit your business?
Implementing EDI with Walmart offers several benefits for both suppliers and the retail giant. Some of the key advantages of using EDI in the context of doing business with Walmart include:
- Automated Data Process: EDI automates many manual and paper-based processes, reducing data entry errors and streamlining the exchange of business documents. This efficiency can lead to faster and more accurate transactions.
- Cost Savings: By eliminating the need for paper documents and manual data entry, EDI can significantly reduce administrative and operational costs for both Walmart and its suppliers.
- Data Accuracy: Walmart EDI reduces data entry errors, leading to more accurate orders and invoices. This can minimize costly errors and disputes, improving overall data quality.
- Faster Transactions: EDI transactions are typically processed more quickly than manual ones. This speed can lead to faster order fulfillment and improved supply chain efficiency.
- Improved Inventory Management: With the use of advance ship notices (ASN), Walmart can gain better visibility into incoming shipments, which helps with inventory management and planning.
- Real-Time Information: Walmart EDI allows for real-time tracking and visibility of transaction status, which is essential for supply chain management and coordination.
- Enhanced Supplier Relationships: EDI helps strengthen the relationship between Walmart and its suppliers by improving communication, transparency, and collaboration.
- Increased Competitive Advantage: Being EDI-compliant with a retail giant like Walmart can open up more business opportunities and help suppliers remain competitive in the industry.
- Data Security: EDI systems often incorporate security measures like encryption and digital signatures, ensuring the confidentiality and integrity of data during transmission.
Walmart EDI Integration from the Inofocn Systems Experts
Inofocn Systems offers fully-managed EDI solutions for Walmart that connect suppliers with their all major ERP systems/accounting packages and Third Party Logistics Centers (3PLs). Our cloud-based EDI process enables you to exchange required business documents to Walmart with the confidence that your Walmart compliant EDI transactions are processed with the proper data and unique EDI guidelines. Walmart EDI integration with Infocon Systems helps you to remove any additional manual processes or errors, minimizing your risk of charge-backs.
To know more on how we implement EDI for Walmart and integrate into any of their internal systems, contact our sales department at +1 888-339-0722 or email us at sales@infoconn.com