The impact on the supply chain and consequently the business can vary depending on what industry vertical it works in.
How can EDI errors be prevented?
EDI errors can be prevented by putting in automated validation processes, software that can review and test the structure of the data being sent and received. On top of this ensuring that that full visibility and alerting is available, so that in the event of an error, specialised staff can react quickly to correct it. Expert EDI staff are sort after, plus a dying breed due to our education systems not training fresh blood up on this specialist area which is critical to supply chains across the world. As a result, businesses are often set up in a way that they either have limited internal EDI resource and supplement it with and EDI provider, or they outsource completely to an EDI provider who can cover all aspects required.
Pro tip: To improve your EDI supply chain management:
– Set up automation software for error notifications.
– Get real-time visibility of your EDI transactions.
Suggested reading: VAN (Value added network) Consolidation article
Reducing your overall EDI risk
For those businesses who do not have any internal EDI resource, we would suggest you consider a Support package which will cover you if any EDI errors arise and ensure they are resolved quickly, reducing risk.
However, if you have not considered EDI before, we recommend you get into contact with an experienced EDI provider who can advise on the best approach to EDI for your business. This will not only ensure a successful EDI set up, which reduces risk, but reduces cost and increases efficiency for your business.
If you do not have EDI adoption across your supply chain and there are some gaps, this can significantly impact on the efficiency of the other areas which do use EDI. Unless EDI is implemented across the whole supply chain, the effectiveness can be damaged, opening various supply chain risks such as delays and the post effects of that. In this case, and EDI provider can carry out an audit to investigate any gaps.
Pro tip: Outsourcing the ownership to an EDI Managed Service Provider can ensure EDI risks are managed successfully.
Suggested reading: To find out more about this option, check out our blog – Top 5 reasons to switch to EDI managed services