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9 Benefits of Integrating Cloud EDI Software Into Your Transportation Management System

Over the past two decades, companies of all sizes — from enterprise-level corporations to mid-size firms and small businesses — have been upgrading their transportation management systems with new cloud EDI software. Compared to traditional ways of managing your electronic data interchange, the advantages of cloud EDI software for the transport business are clear.

April 29, 2022


This article discusses these EDI advantages of cloud software in further detail to help you understand why you should integrate it into your transportation management system to manage your business documents, supply chain and more.

Problems With Using a Legacy EDI for Your Transport Business

When communicating with your trading partners, it is important to have seamless transmission of your information through your electronic data interchange. With legacy EDI systems, a number of problems arise when using on-premise hardware, point-to-point connections or other value-added network services.

Older transportation EDI can slow down deployment time, create inefficiencies in data exchange and lack real-time updating of your supply chain. Issues with your transportation management system impact your bottom line. Some of the most common issues with traditional EDI tools include:

  • Lack of flexibility
  • Difficult deployment
  • Extensive downtime for updating
  • Challenges in data format translation
  • Difficulties updating
  • Poor scaling
  • No automation

What Is Cloud EDI Software?

Cloud EDI software is database software for your transport business that is not centrally located. It retains all of the encryption and security of traditional EDI systems while adding several advantages to your warehouse management system and supply chain network.

EDI technology has developed new, more efficient business processes in recent years. Cloud-based EDI software is a flexible solution to an ever-changing business landscape. You can get the most out of your trading partner relationships with a transportation management system using the latest cloud EDI technology. Cloud-based EDI software can integrate into your current business system with minimal downtime and disruption.

The Benefits of Cloud-Based Transportation EDI

When you are looking for EDI advantages for your transportation management system, there are none greater than the benefits you get from cloud EDI software. The best electronic data interchange solution will help you manage your supply chain, keep your trading partners up-to-date on ongoing transactions and improve your business outcomes.

Top nine benefits of integrating cloud EDI software into your transportation management system

1. Automated Communications

Through cloud EDI software, you can share and deliver automated communications with your supply chain partners. You’ll be able to give them regular updates on delivery status, invoicing and sales information. EDI messages will enhance your business-to-business communication by informing you of new quote requests, purchase orders and requests for EDI connections.

2. Faster Business Cycles

With digital documentation for your cloud EDI software, you will expedite your business cycles. Eliminate time spent on manual data entry, delays in sending and receiving payments, inventory updating and supply chain management. EDI document generation for your transport business allows you to manage your service-level agreements.

3. Improved Data Quality

A full digital ecosystem lets you develop operational efficiencies and learn more about potential bottlenecks. By tracking your external and internal systems with available third-party integration and data formats, you can capture real-time data. A cloud-based transportation management system lets you incorporate your business rules to track key performance indicators.

4. Reduced Carbon Footprint

eCommerce platforms eliminate paper waste with digital certificates, invoicing and purchase orders. Digital documentation leaves the postal mail in the past with cloud EDI software. Streamline delivery orders through data planning to reduce emissions. New trading partners who join your integration platform will reduce onboarding time and associated costs.

5. Increased Productivity

Less time spent on manual data entry means more time on high-level tasks with cloud EDI software. Manage your business documents, keep track of your supply chain and create operational efficiencies by capturing data and eliminating unnecessary processes. Increased communication with business partners using automated communications allows you to exchange data quickly and provide up-to-date information on inventory and deliveries with real-time tracking.

6. More Accurate Lead Times

With real-time data comes real-time decision making. A cloud-based EDI solution keeps your business up-to-date on supply chain issues, inventory management, new purchase orders, etc. In your digital ecosystem, cloud EDI software keeps track of incoming and outgoing documents, operating as your managed file transfer solution to keep track of all your business transactions.

7. Scalability

Opening new fulfillment centers and adding additional trading partners is easier with cloud-based EDI. Key features that allow cloud-based software to enhance your transportation management system include a standard format for documents, easy integration of new warehousing inventories and no required hardware for additional data expansion.

8. Portability

Access your systems remotely with cloud EDI solutions for your transport business. Traditional EDI tools can require complex virtual peer networks or login credentials that prevent access from remote locations. With cloud EDI software, your transportation management system is accessible from anywhere. Database support is managed at the hosting location which minimizes service interruptions. If you change service centers, you don’t have to worry about transporting delicate, expensive on-site hardware to your new location.

9. Cost Savings

Your cloud EDI software allows you to maximize the efficiency of your business through meticulous data tracking and inventory management. By managing your supply chain, communications and documentation, you can enhance your relationships with your trading partners by streamlining all of your processes.