Retail EDI: What is Retail EDI and how does it work
- July 16, 2021 / by Infocon Systems
Virtually every retailer, such as Walmart or Kroger, mandates EDI capability to manage their business relationships with suppliers. Electronic Data Interchange, known as EDI, refers to the electronic exchange of business documents between companies in a standardized format. At Infocon Systems, we have over thirty years of experience of developing custom EDI solutions for any type of business, with any integration, in any industry!
How does EDI in retail management work?
- The retailer sends a purchase order (EDI 850) to the supplier, the information (quantities, product numbers, shipping instructions, and so on) of the purchase order is automatically sent to the EDI system of the supplier
- After receiving a purchase order, the supplier confirms receipt with an acknowledgment (EDI 997 Functional Acknowledgement and/or 855 Purchase Order Acknowledgement). The supplier may also respond with an Invoice (EDI 810) to convey invoice details and verify it to the quantities received (EDI 861).
- Based on the order, the supplier sends the warehouse shipping order (EDI 940) to the warehouse, describing the order details. The warehouse picks, packs, and ships the order. An Advanced Shipping Notification (ASN) is sent back to the retailer after scanning everything via barcode.
- The retailer then uses their own scanners to confirm the order and packing list that was received from the warehouse. This data is then uploaded to the EDI system, enabling the retailer to confirm and track everything ordered
What are Retail EDI transaction sets?
Here is the list of EDI transaction codes used in retail industries.
- EDI 810 – it is used for Invoice
- EDI 820 – it is used for Payment Order/Remittance Advice
- EDI 832 – it is used for Price/Sales Catalog
- EDI 850 – it is used for Purchase Order
- EDI 852 – it is used for Product Activity Data
- EDI 855 – it is used for Purchase Order Acknowledgment
- EDI 856 – it is used for Ship Notice/Manifest-transfer
- EDI 860 – it is used for Purchase Order Change Request/ Buyer Initiated
- EDI 867 – it is used for Product Transfer and Resale Report
- EDI 997 – it is used for Functional Acknowledgment
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Looking for tips on how to get started?
To learn more on how we can implement EDI for your trading partners, and integrate with any of your internal systems, please contact Infocon Systems at +1 888-339-0722 or email at sales@infoconn.com. We’d love to help.