Electronic Data Interchange (EDI) automation is a game changer for businesses that want to streamline operations, improve data accuracy, and enhance collaboration with trading partners. But knowing where to start can be overwhelming. Every company has different needs depending on its industry, size, and existing technology stack.
In this blog, we’ll explore what to automate first with EDI, tailored by industry — helping you focus on the highest-impact areas to maximize efficiency and ROI.
Why Prioritize EDI Automation?
Before diving into industry-specific recommendations, it’s important to understand why prioritizing EDI automation matters:
- Focus on High-Impact Transactions: Automate the most frequent and time-consuming documents first.
- Improve Cash Flow: Speed up invoicing and payment cycles.
- Reduce Errors: Minimize manual data entry mistakes that can delay orders and shipments.
- Increase Compliance: Meet trading partner and regulatory requirements smoothly.
EDI Priorities by Industry
1. Retail & Consumer Goods
Key Transactions to Automate First:
- Purchase Orders (850): Automate incoming orders from retailers to reduce manual processing.
- Advance Ship Notices (856): Provide real-time shipment updates to retail partners.
- Invoices (810): Accelerate payment cycles with electronic invoicing.
- Product Activity Data (852): Share inventory and sales data to optimize replenishment.
Why?
Retail involves a high volume of orders with tight deadlines and complex supplier networks. Automating these key documents speeds up fulfillment and improves visibility.
2. Manufacturing
Key Transactions to Automate First:
- Purchase Orders (850) & Purchase Order Acknowledgments (855): Ensure clear communication about order details.
- Advanced Ship Notices (856): Synchronize logistics and inventory management.
- Inventory Reports (846): Share stock levels to avoid production delays.
- Invoice (810) & Payment Orders (820): Streamline accounts payable and receivable.
Why?
Manufacturing relies on just-in-time inventory and complex supply chains. Automating order and shipment transactions reduces downtime and supports lean operations.
3. Healthcare
Key Transactions to Automate First:
- 837 Claim Submission: Automate insurance claims processing to reduce manual errors and speed reimbursements.
- 835 Payment Remittance Advice: Streamline payment reconciliation.
- 276/277 Claim Status Inquiry and Response: Provide transparency on claims processing.
- Purchase Orders (850) & Invoices (810): Automate procurement of medical supplies.
Why?
Healthcare demands compliance with strict regulations (HIPAA), accuracy, and speed in claims and procurement processes. Automating claims and payment documents is critical.
4. Food & Beverage
Key Transactions to Automate First:
- Purchase Orders (850): Automate orders from retailers and distributors.
- Advance Ship Notices (856): Provide visibility on perishable goods shipments.
- Invoices (810) & Payment Orders (820): Expedite billing and payments.
- Quality Assurance Documents: Integrate certificates or compliance reports as needed.
Why?
Perishable goods require tight timing and visibility in shipping and receiving. Automating order and shipping data helps reduce waste and improve shelf availability.
5. Logistics & Transportation
Key Transactions to Automate First:
- Shipment Status Updates: Automate visibility on freight movements.
- Freight Invoices & Payment (810, 820): Speed up billing cycles.
- Purchase Orders & Acknowledgments: Coordinate equipment and resource procurement.
- Customs Documentation: Automate customs clearance documents for cross-border shipments.
Why?
Logistics relies heavily on timely data for tracking and invoicing. Automation reduces paperwork and accelerates operational flow.
How to Get Started
- Assess Your Current Processes: Identify which transactions consume the most time or cause delays.
- Consult Your Trading Partners: Understand their EDI requirements and capabilities.
- Prioritize Based on Volume and Impact: Start automating the documents that will give the greatest benefit.
- Choose the Right EDI Solution: Ensure it supports your industry’s standards and integrates with your ERP.
- Plan for Scalability: Build a roadmap to add more documents and partners over time.
Final Thoughts
EDI automation isn’t a one-size-fits-all process. Different industries have different transaction priorities based on their workflows, compliance needs, and business models. By focusing on your industry’s key transactions first, you can realize faster benefits, reduce costs, and build a stronger foundation for digital transformation.
If you’re ready to streamline your EDI workflows but unsure where to begin, reach out to an expert EDI solutions provider who can tailor the approach to your unique needs.
