The electronic data interchange is expressed in the interchange of business documents between business partners via their computers. This type of communication is becoming more popular because of all of its advantages, including:
- The speed of exchange of information
- The speed for processing information
- The reduction of risk of errors
- Paper conservation
The electronic data interchange is increasingly overthrowing all other business communication types
The electronic data interchange (EDI) has already replaced the use of the ordinary postal services and faxes, and is beginning to replace even e-mail communication. E-mail communication too is a type of electronic data interchange, but it requires human input. When people take part in the communication, this slows down the data processing process and increases the risk of human error.
Benefits for freight forwarders Europe from the electronic data interchange
With the use of EDI, the documents are received via the corresponding application on the corresponding computer. This allows for the data processing to begin immediately.
The European logistics network companies meet the trends for electronic data exchange by introducing them to the processing of various forwarding documents, including: bills of lading, customs documents, payment documents, documents of availability and others.
The use of one of the standard EDI formats
The use of a standard EDI format for the documents is necessary because they are processed by computer. The standardised document describes each and every bit of information in its form. The different forms implemented in the various companies are not used. This is true for the EDI forms implemented by the member companies of IFA.
EDI translators
The companies which will use EDI in their partnered business activities need to use an EDI translator. This is software which can be used either by the company or via an EDI supplier.
Benefits of EDI for logistics
The benefit of EDI for logistics is that the large volumes of continuous communication will become automatic. This will allow the personnel of the companies from the network of freight forwarders will be able to focus on other tasks, in order to ensure an increase in the quality of the groupage services. Also, the data will not be inputted manually in the information systems which will save time, money and will decrease the risk of human error to a minimum.
The second main advantage for the companies from the freight forwarders network is the seamless electronic communication between all partners in the network.
The electronic data interchange is also an advantage due to the frequent amendments and changes occurring in the import regulations. These changes require that a large volume of data is processed and reported, which is done much quicker with EDI.
Last but not least, EDI allows for the international freight forwarding companies to ensure real-time updated information regarding the status of the shipments at any time.