EDI is now a standard practice in retail. That means manufacturers who sell their products at retail are certainly doing it with EDI as part of the mix.
Larger retailers must continue to find ways to improve the performance of their EDI systems as the nature of their supply chains and operations become more complex. Meanwhile, small and mid-sized retailers must now also introduce EDI into their business models to stay competitive.
Improving EDI Operations for Larger Retailers
Competitive pressures, industry consolidation and a more cost-conscious consumer have kept even the most robust retailers on their toes. While EDI is the norm for these larger retail concerns, they must continually evaluate their EDI programs for opportunities to streamline, cut costs and improve processes.
Larger retailers may deploy a variety of resources and tools, each addressing a particular aspect of their EDI operations. For example, a single retail organization may utilize a combination of software, EDI outsourcing services, VANs, web services and more. Some retailers have found that such a combination leads to optimal performance and efficiency, given the sheer size and complexity of their operations and supply chain.
New procedures, protocols and formats may also introduce efficiencies into EDI operations. For example, more and more retailers today are implementing XML-RPC with web services to enhance their communications.
XML-RPC is a remote procedure call (RPC) protocol for making procedure calls over the Internet, encoded via XML. This provides a simple way for different programming languages and applications running in different server environments to communicate with each other over the internet, so more complex data structures can easily be transmitted, processed and returned.
Advantages of EDI for Smaller Retailers
EDI initiatives can appear daunting to a smaller retailer, and there are numerous challenges to doing it effectively. However, the result of trading via EDI can ultimately yield significant processing costs savings and other benefits. But how? What is the best approach? How does the smaller retailer get their suppliers on board without the clout of the larger retailers?
In short, how does the small or mid-sized retailer take advantage of EDI without getting overwhelmed with high cost and complexity?
Fortunately, because of the efforts and investments of major retailers over the years, the opportunities for smaller retailers to implement EDI successfully has perhaps never been greater. There are two primary reasons for this:
- Viable EDI Alternatives – due to the increased demand for EDI solutions for retailers and their suppliers, there are many effective and relatively affordable options for the small and mid-sized retailer today. These include EDI and related software, EDI Outsourcing services, effective web-based EDI solutions, and more.
- Greater Supplier Compliance – with so many manufacturers forced to become EDI-compliant to do business with the larger retailers, the smaller retailer is likely to find that a number of their suppliers are already onboard. Plus, onboarding services are available that have streamlined the process of organizing suppliers, for greater results and performance.
If you make the investment in an EDI initiative for your retail business, then you have a great deal to gain. 1EDISource can help you do it effectively and affordably.
At 1EDISource, we have a long history of managing and supporting EDI operations for retailers and their suppliers. Our advanced EDI software, EDI/HQ™, is designed with many retail-specific functions built-in, including support for XML-RPC.
EDI SmartXchange for Suppliers provides non-EDI compliant suppliers with a simple web portal to send and receive EDI transmissions with ease. Purchase orders, ASNs, shipping schedules and other EDI documents from the manufacturer are converted to web formats that the supplier can access. They can then create and send new EDI documents in return. It’s seamless, simple and effective.
Talk to one of our EDI Experts to learn how 1EDISource can help you implement a complete and cost-effective EDI solution for your retail business.
Want to learn more? Read about EDI Standards, EDI Translation and EDI Data Mapping. Or, download EDI 101, our industry-leading EDI resource booklet. It provides a complete overview of EDI…and it’s FREE.