Control your business trading market with EDI software

As your distribution business grows you are likely to encounter customers who ask you to conduct business with them via EDI software, or Electronic Data Interchange. This refers to the software computers from different companies use to communicate and share trading information.

"Many big retailers will only do business with suppliers if they are EDI software-enabled," says David Simmonds from JIWA Financials. "It makes life easier for them and it's cheaper for them than doing business manually."

The big players

Some of the largest retailers in the country prefer their distributors and suppliers to be able to operate via EDI software. It enables these retailers - whether Target, David Jones, Coles, Myer, Woolworths or Bunnings - to automatically and electronically exchange information like purchase orders and invoices.

This electronic interchange is hugely appealing to these big players because it streamlines the ordering process, speeds up data transmission, increases efficiencies and reduces labour costs.

If you are not able to do business with these big firms via EDI software then they might consider taking their custom elsewhere. Can your business afford that?

How EDI software works

EDI software manufactured by firms like JIWA contains company-specific data along with data fields pre-prepared to accept orders and exchange information with most of the country's largest retailers.

 In short, the EDI software system:

• takes the order from the customer
• acknowledges receipt of the order
• sends an Advanced Shipment Notice to the purchaser that the goods are on their way
• sends an invoice in advance.

EDI software can also integrate with complementary technologies to co-ordinate elements like labelling, barcode scanning and pricing.

Benefits of being EDI software-enabled

Having EDI software installed on your computer system will allow you to:

• trade with some of the biggest players in the retail industry
• reduce labour costs and overheads
• streamline your ordering system
• remove duplications and reduce opportunities for human error
• improve your inventory management, transport and distribution, and administration.

A vital cog

EDI software is a key element of the national wholesale distribution and retail supply chain. It improves efficiencies of trade between purchasers and suppliers, which makes it very appealing to most of the larger companies involved in this industry.

Costs to your business

EDI software is a relatively complicated application to install, and it doesn't come cheap. A 10-user system might cost around $25,000 to purchase and another $25,000 to install.

But for any distribution business dealing with the larger players in the retail industry, or wanting to, it is money well spent. So why not talk to a software firm today, and ask how EDI software can open up a world of opportunities for your business.