bitfreighter EDI FAQ
Welcome to our Frequently Asked Questions (FAQ) section on Electronic Data Interchange (EDI) for Logistics! Here, we will address common queries relating to EDI in the logistics industry. Let's dive right in.
1. What is EDI?
EDI, or Electronic Data Interchange, refers to the computer-to-computer exchange of business documents, such as orders, invoices, and shipping notices, between trading partners. It enables the automated and paperless transfer of information in a standardized electronic format.
2. How does EDI benefit the logistics industry?
EDI offers several advantages to the logistics industry, including:
Efficiency: EDI eliminates manual data entry, reducing errors and improving data accuracy. It facilitates quicker information exchange, leading to faster order processing, reduced lead times, and increased efficiency.
Cost savings: By eliminating paper-based processes, EDI reduces printing, storage, and postage costs. It also minimizes the need for manual intervention, saving labor and administrative expenses.
Increased accuracy: EDI eliminates human data entry errors, ensuring accurate and reliable information exchange between partners.
Improved visibility: EDI provides real-time visibility into supply chain processes, allowing for better tracking and monitoring of shipments, inventory, and order status.
3. What are the essential EDI documents in logistics?
The most common EDI documents used in logistics include:
Load Tender(204): Used by the buyer to request goods or services from the supplier.
Tender Acceptance (990): Acknowledges the receipt and acceptance of a purchase order.
These are just a few examples, and there are many other types of EDI documents used depending on the specific logistics requirements.
Tracking and Status Updates (214): Provides detailed information about a shipment, including contents, quantities, packaging, and delivery information.
Invoice (210): Sent by the supplier to the buyer, containing details of the products or services provided and the associated charges
4. Do I need specific software or systems to implement EDI in logistics?
Yes, to implement EDI in logistics, you will need an EDI solution or software that can manage the conversion of data into the required EDI format and facilitate secure communication with your trading partners. This software can be stand-alone EDI software or integrated into your existing supply chain management or enterprise resource planning (ERP) systems.
5. How secure is EDI for logistics?
EDI relies on robust security measures to ensure the confidentiality, integrity, and authenticity of the exchanged data. Secure protocols, encryption, digital signatures, and authentication mechanisms are used to protect data during transmission. Industry standards, such as AS2 (Applicability Statement 2), are commonly employed to establish secure connections between trading partners.
6. Is it possible to integrate EDI with other technologies, such as IoT and blockchain?
Yes, EDI can be integrated with other technologies to enhance logistics operations. IoT (Internet of Things) devices can provide real-time data on shipments, inventory, and conditions. Blockchain technology can enable secure and transparent transaction recording, ensuring the integrity of supply chain data. Integrating these technologies with EDI can foster even greater efficiency, visibility, and trust within the logistics process.
These FAQs should help address some of the common queries related to EDI for logistics. If you have any further questions or require more specific information, feel free to reach out to our team of experts for guidance and assistance.What is EDI (electronic data interchange)?
Electronic Data Interchange (EDI) is the electronic interchange of business information using a standardized format; a process which allows one company to send information to another company electronically rather than with paper. Business entities conducting business electronically are called trading partners.
What is an EDI 204.
EDI 204 is an electronic data interchange (EDI) document type used in the transportation industry for carrier shipment information. It is used to convey information about the details of a shipment, including the shipment's origin, destination, expected delivery date, and the types of goods being shipped.
The EDI 204 document is used by carriers to communicate shipment information to other parties, such as shippers, receivers, and third-party logistics providers. It can also be used to communicate information about the status of a shipment, such as when it has been loaded onto a truck or when it has arrived at its destination.
The EDI 204 document format is standardized and follows specific guidelines set by the Transportation Data Coordinating Committee (TDCC). This standardization allows for seamless communication between different parties and systems, and helps to ensure that information is transmitted accurately and consistently.
Overall, the EDI 204 document plays an important role in streamlining the shipping and transportation process, allowing for more efficient and effective communication between different parties involved in the process.
How is EDI used?
Electronic Data Interchange (EDI) in the simplest form is the exchange of data between two companies. EDI is the computer to computer, or in the logistics world, TMS to TMS exchange of information, in a standard format, of business documents between trading partners. EDI for logistics providers is used to send over load-tenders 204, provide status and location updates 214, and send electronic invoices 210.
What is bitfreighter?
Bitfreighter is an Integration Platform for Logistics Providers to connect with their Trading Partners or Shippers to exchange data. The platform is a middle-ware with an extensible amount of connection and data uses with the ability to offer a user interface for value-added automation. The platform creates a value-added integration freight network that creates one-to-many connections through our modern proprietary technology.
Does Bitfreighter have an OPEN API?
Yes, bitfreighter has standardized the EDI file format to our JSON Open API. This allows modern TMS platforms to transact EDI files without having to do any heavy lifting.
What is a VAN Connection?
A Van Connection creates a network to pass data through a connection with many tenants that uses the value-added network.
What are the different connection types?
EDI traditionally has used 3 primary connection methods, FTP, SFTP, or AS2.
What does a traditional EDI van charge per load on average?
The standard charge per load for a transactional EDI pricing model is between $3 to $5 per load, depending on how much data (characters) your trading partner is transacting.
Do I need a TMS (Transportation Management System) in order to do EDI with a Shipper?
With Bitfreighter, a TMS is not required to do EDI with a shipper. You can use Bitfreighter LoadAccept as a standalone platform to receive and approve inbound load tenders, send acknowledgments, and send status updates. This allows you to be EDI compliant without the additional expense of adding a TMS.
What is Real Time Rating?
Real Time Rating is a modern way for Shippers to receive a truckload quote in real time through automation. Bitfreighters LiveQuote tool allows Logistics Providers to participate in real time rating.