EDI and the Transport Industry
DCS Can Help You Move Into or Expand Your EDI Systems
E-Commerce for the Trucking and Logistics Industry revolves around the physical movement of goods. These business processes may span multiple interested parties and are triggered by business events such as generation of an order, shipment information, shipment tracking, acceptance or rejection of a shipment and payment. EDI will play an ever increasing role in the process.
Medium sized shippers are now moving to EDI and away from tedious data entry just as the large shippers did earlier. Expansion of EDI may mean the next level of automation is needed, while keeping head counts constant. Most dispatch systems now have EDI capabilities so the cost of EDI has fallen.
Chances are, your Dispatch and Billing Systems have integrated EDI, but you do not have the time or expertise to configure it and contact customers and carriers regarding changes. Fortunately, DCS EDI experience with your existing EDI systems means that upgrading can be done thoroughly, quickly, and economically. Just ask for our FREE EDI assessment and learn how working together with DCS EDI consultants, you can learn EDI and become self-reliant.
You can learn more about how EDI impacts the Trucking and Transportation industries and how DCS can help by checking out these links:
- EDI Shipment Status 214 – Failed Pick-up Message Loses Customers
- Order to Payment Cycle for Transportation
- TMW EDI Automation Software
- Electronic Transport With EDI From the Manufacturer’s Perspective
Quick Overview of Transport EDI
Carriers will likely be forced by the market into one of two EDI systems: Routine or “Traditional” EDI used by large and/or frequent shippers or “Web based exchanges” used by small and/or infrequent shippers. The decision on which method to be used will be determined by several factors including: Trading Partner requirements, volume of transactions, and staffing availability. A Carrier utilizing traditional EDI can save pricey VAN fees by considering AS2.
Routine: Routine high volume communication should be automated allowing your dispatchers and accounts receivables more time to focus on solving problems and customer service. Non routine tasks such as claims processing are likely to remain manual due to the risk inherent.
Traditional EDI: all data is communicated between the Carrier, Shipper, and the Consignee in electronic documents called “Transaction Sets” (TS). The advantage of this method is that it eliminates a Dispatcher from having to key information into the Dispatch and Billing System. This results in a savings of time and money and eliminates any data entry mistakes.
There are several EDI Transaction Sets that are utilized in the Trucking Industry. The most commonly used Transaction Sets are the:
- 204- Motor Carrier Load Tender
- 990- Response to the Load Tender
- 211- Bill of Lading
- 212- Delivery Trailer Manifest
- 214- Shipment Status Message
- 210- Freight Details and Invoice
- 820- Payment Order/Remittance Advice
For more information on these Transactions Sets click here.
Conclusion
E-commerce allows carriers to have access to the vital information that help them perform at optimum efficiency. It gives the small carrier the same access and opportunity as the larger carriers. It allows carriers to increase asset utilization, take control of transportation costs, lower the cost of acquiring new business and makes them more competitive. Fast, reliable payments speed collection, eliminate bad debts and improve cash flow. E-commerce also allows shippers the ability to manage their contract carriers in addition to putting loads out for bid in the “public” arena. It allows shippers to find the correct carrier to the specific job and it allows the shipper to find the best price for the service.
The transfer of electronic data in the process of business can be a powerful business tool and this has never been more apparent than in the Trucking Industry. The impact that an e-commerce integration can have on the Trucking Industry, both carrier and shipper can greatly affect the bottom lines of both businesses. Your next step is to e-mail DCS for a FREE Assessment.
To learn more on Warehouse EDI, please read our Warehousing page.
Electronic Data Interchange (EDI) is the computer-to-computer exchange of routine business documents such as Purchase Orders, Shipment Notices, Invoices, and Remittance Advices without human intervention. Data moves from your customer’s computer system – through the Internet securely – to your computer system.