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Advantages of EDI and the Transportation Industry

Transportation companies continue to look for ways to improve efficiency and reduce costs. Incorporating EDI is a must to maintain and build long-term business relations with clients and vendors alike.

There can be significant advantages that freight providers can get from implementing an EDI system as it relates to the supply chain.

  1. For those in the transportation industry, routine high-volume communication can be easily automated using EDI, eliminating the need for the dispatcher to manually key information into the dispatch operational and billing system. This results in saving time and money while eliminating costly data entry mistakes. This allows dispatching staff to focus on essential and profitable tasks. You realize increased organization efficiency and customer satisfaction.
  2. Time and departmental expense are saved for billing and operation units since the exchange of data is automated and replaces the majority of human intervention.
  3. EDI compliancy allows organizations to communicate seamlessly and electronically with all parties involved in the supply chain.
  4. Reduced paper-based communication provides real-time visibility about the transportation of their assets, helping to make quick decisions and reduce turnaround time.

 

Transaction Sets for the Transportation Industry

All data is communicated between the carrier, shipper, and the consignee in electronic documents called “Transaction Sets.” The most common EDI Transaction Sets in the Transportation Industry are:

  • 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
  • 997 – Functional Acknowledgement

Learn more about these transaction sets, click here.

 

EDI Protocols

Communication protocols allow for two machines to communicate with each other. In other words, it’s the method you use to send and receive your EDI or other formatted documents. You can use any valid protocol for your EDI. Freight carriers and transporters typically need to use the same protocol as your partner, so companies that have trade documents with multiple agencies usually need to support multiple types of protocols.

To learn on the most popular EDI protocols currently being used click here.

 

Conclusion

E-commerce allows carriers to have access to the vital information that helps them perform at optimum efficiency. The small carriers are given the same access and opportunity as the larger carriers, allowing them to increase asset utilization, take control of costs, lower the cost of acquiring new business, and become more competitive. Fast and reliable payments, speed of collection, eliminating bad debts, and improving cash flow are all benefits of EDI. A carrier can eliminate pricey VAN fees by considering AS2 for direct connections.

The transfer of electronic data in the process of business can be a powerful tool. This has never been more apparent than in the trucking industry. E-commerce integration can greatly affect the bottom lines of both carrier and shipper businesses.

Data Communication Solutions (DCS) has been helping the transit and logistics companies grow with their EDI since 1991. We can help you decide what path you need to take with implementing or expanding your EDI based on your business growth plans so that your success is properly mapped, tested and approved. Our EDI Specialists are experienced and knowledgeable, providing services such as development, managed services, support and training for a variety of EDI systems and industries. Contact us for a no-cost assessment to help you determine your next step with EDI.

 

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