EDI in Transportation: Breaking Down What it is and How it Works

One cannot deny the pace in which the world is moving. This has also enhanced the pace of competition between businesses to stay ahead of each other. The technology herein has played an integral role in sorting the working process for big companies and organizations, thereby making the task more integrated and refined. Its uses are far-reaching and offers the best solution when it comes to keeping the crowd aware of the information.

Here in this article, we show an in-detail outlook of the history of EDI in transportation, what does it mean and more importantly how it works. 

A brief sneak peek into EDI

Before we begin with elucidating about EDI in transportation transactions, lets first revise our understanding of what is EDI i.e., Electronic Data Interchange. 

In simple terms, EDI is the process of carrying out a computer to computer exchange of documents and information related to businesses using a standard electronic format. Developed back during the 1960s, the primary objective of this technology was to speed the transportation and shipping of documents. In the case of the transportation industry, there happens to be a constant movement of goods from one place to another. 

This makes it an important aspect of our economy. And hence, herein involving EDI in transportation transactions deemed extremely important. This thereby gave rise to the first EDI technique used in the transportation and logistics industry. We at Data Integration Specialists offer assistance in carrying out EDI in transportation transactions backed by our team of efficient specialists.

How does EDI work in the transportation business?

To begin with, the primary requirement of EDI was to replace postal mail, email, and fax with a well-defined technology. Even though email is also counted as an electronic transaction, the documents that are exchanged through email still require manual handling. However, in the case of EDI, one can straightaway flow through the appropriate application on the receiver’s system and can directly begin with the process immediately without waiting for human intervention.

No more need to use lots and lots of paper

While a normal manual process would include a lot of paperwork. In the case of EDI in transportation, it enables a swiffer process without the need for human involvement. Thus, there is the least chance of forgetting to get a transaction processed and the EDI will ensure it happens without any delay.

Ways in which the EDI in transportation transaction method work

There are three conventional methods used for carrying out EDI in transportation which includes:

  • Transaction of Business Documents

These include documents or data that are exchanged between businesses and deem to be more confidential. The most commonly exchanged documents through EDI include invoices, advance ship notices, and purchase orders. Other essential documents that are necessary for the process include customs documents, inventories, shipping status details, payment orders and bill of lading.

  • Following a standardized format

Since EDI documents are processed solely through computers without any manual intervention, it also requires the use of the standard format. This format makes it easy for the computer to read and understand what the document implies to convey. It describes what the information is, in which format, etc.

We at Data Integration Specialist aid in developing company-specific formats that are easy to read and exchange information. We ensure to provide the perfect EDI for data integration, which transmits your information in time no matter which time zone you are working in.

So, if you are looking out for a medium that can offer the perfect EDI solution to streamlining your transport business activities, then do not forget to try out our services.