Are you thinking of incorporating EDI systems within your transportation business? But hovering around here and there to understand what is EDI and how to proceed with EDI Logistic Transactions? Well, you have come to the right place. Here, we are going to discuss all the bits and pieces of EDI and its contribution to transport businesses.
The haulage and transportation industry got a new lifeline with the introduction of EDI. The transportation companies are incorporating the EDI document exchange process into their systems. The Electronic Document Interchange process ensures better customer service for the companies. As the system gets automated, the manpower required to take care of this high volume of communications gets minimized. Also, organizations can concentrate more on productive and profitable tasks.
What is EDI?
As you already got the full form of EDI, Electronic Data interchange is nothing but a process of exchanging business documents in standard electronic format through a medium like computer-to-computer between business partners.
EDI was developed in the year 1960 with the primary objective of pacing up the movement of shipments and transportation documents. The transportation industry, probably the most important for the growth of an economy, was the first to incorporate EDI but face certain difficulties at the start.
Benefits of EDI in Transportation
EDI offers a quick and reliable exchange of transport-related documents between parcel carriers, truckers, rail, ocean, and air transport. The trailer manifests, invoices and other electronic bills of loading ensures efficient processing of data. Electronic Data Interchange can improve the accuracy of data entry through an automated process while removing the probability of human errors. Quick and precise shipment delivery alert or pick up messages can assure of the status of the product delivery.
The main advantage of EDI is that as a transportation company, it allows you to communicate with different parties inside the supply chain seamlessly. The whole EDI Logistic Transaction involves different steps. Here have an overview of the Transport EDI Data flow,
- Rating or obtaining a price
- Booking a load for shipments
- Confirming a load
- Bill of Loading and trailer manifest
- The message of Shipment Status
- Freight Invoice
- Remittance Advice
All these steps or transactions involve different EDI Logistic Transaction code. Have a look at the code below.
Common Codes For EDI Logistics Transactions
The shipper, carrier and the consignee authorities communicate with each other through a specific set of transaction codes in EDI documents. These codes are known as ANSI X12 ‘Transaction Sets’. Have a look at the common code used in EDI logistic transactions.
204- Load Tender for Motor Carrier: The YRC or the carrier receives this transaction set from the shipper or 3PL through a TMS
990 – Tender Load Response: This transaction is the response to a 204 transaction. The shipper or the third party uses this to make the offer for the shipment. Basically, this code gets used by the motor carriers to specify if it will collect a certain shipment. The 990 code can also be used to reject or accept a Spot Bid Request.
211 – Loading Bill: The carrier receives this transaction set from the shipper asking him to produce with the detailed Bill of Loading details related to the particular shipment.
212- Manifest of Delivery Trailer: The carrier dispatch this transaction code to all the involved parties. Here in this code, the contents of a trailer containing multiple shipments that have been sent for delivery are listed.
214- Status Message for the Shipment: This transaction set is also for the shipper or consignee authority. The carrier sends this message to offer updated information regarding shipments. The data consists of reference numbers, route, location, date and time.
210- Shipment Details and Invoice: The carrier dispatch this transaction code as an invoice to ask for payment. The code consists of detailed information about the charges.
820 – Payment Order: The customer or payer sends the code to the logistic carrier to offer payment details.
997 – Functional Acknowledgement Details: The shipper, carrier or payee sends this transaction code to acknowledge each transaction set.
The electronic data transfer in the process of business can be an utterly useful tool to maintain clarity, transparency between different parties involved inside an industry. You can achieve rich productivity and efficiency with the incorporation of EDI but you need to have the backup of the right EDI integration consultants.
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