Achieve Flawless Retail EDI Compliance | Streamline Warehouse & Supply Chain Integration

Achieve Seamless EDI Compliance for Retail Chains

Reducing lead times, boosting the rate of perfect orders, and automating workflows are vital goals for today’s logistics and supply chain managers. Achieving these outcomes starts with choosing the right technology and following the best practices for implementation.

This guide breaks down the essential steps to build a smooth data exchange system between your company’s ERP and warehouse management systems (WMS). Using the example of switching warehouse providers for a global retail network of branded clothing, these insights can benefit supply chain professionals across various industries.

When to Optimize Your Data Exchange System

• Changing warehouse service providers or ERP systems
• Enhancing existing warehouse processes by adding automation like labeling or alerts

What is EDI Integration?

EDI (Electronic Data Interchange) automates exchanging standardized documents (in formats like text or Excel) with clearly defined fields understood by all involved systems. A project manager’s role is to define clear business needs and work closely with IT teams to develop test scenarios and operational controls.

Core Warehouse Processes Supported by EDI

• Acceptance of inbound goods
• Order assembly and picking
• Shipment and dispatch

Classifying Inventory for Effective Handling

• Piece goods stored in specific locations
• Cross-docking for quick transfer of wholesale goods
• Point of Sale materials (POSM), such as packaging and displays

Handling Special Inventory Statuses

Certain goods don’t require separate physical storage but are tracked virtually with status flags, for example:

• Returned or markdown inventory
• Blocked items (e.g., defective products)
• Lost or missing inventory

Managing Inventory Discrepancies

Inventory mismatches between physical stock and system records can occur. Assigning a status like "Lost by the Warehouse" excludes these items from order fulfillment while allowing easy status restoration if found.

Inventory Status Categories

• Marriage (4)
• Blocking (3)
• Lost by the Warehouse (2)
• For Sale (1)

Breaking Down Warehouse Processes

Map detailed handling steps for each item type to ensure clear workflows and successful EDI integration. A typical breakdown includes:

A) Acceptance

• Task assignment to warehouse
• Receiving and unloading goods
• Quality and quantity verification
• Storing items in assigned locations
• Confirmation and discrepancy recording

B) Order Assembly

• Task assignment for order picking
• Preparation of waybills and item selection
• Additional services like packaging and labeling
• Printing packing lists
• Transferring orders to dispatch zones
• Assembly confirmation receipt

C) Shipment

• Loading vehicles
• Printing necessary shipment documents
• Confirming shipment completion

EDI Message Direction

Because most EDI messages are unidirectional, it’s crucial to define the direction for each subprocess and the specific message types involved.

At Cogential IT, we make connecting with your EDI partners seamless. Our trusted solutions improve control over your warehouse EDI integration and provide full visibility into your supply chain. This helps you automate operations and accelerate business growth with maximum efficiency.