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Transport

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DCS Can Help You Move Into or Expand Your EDI Systems

With the focus of E-Commerce for the Trucking and Logistics Industry revolving around reporting the physical movement of goods, precision is the key. These messages may span multiple interested parties and are triggered by business events such as generation of a load, shipment information, shipment tracking, acceptance or rejection of a shipment, and payment. To solve the accuracy challenge, medium sized shippers are now moving to EDI and away from tedious data entry from WebFroms just as the large shippers did earlier. Expansion of EDI means the next level of automation is achieved, while keeping head counts constant.

Chances are your Dispatch and Billing Systems have integrated EDI capabilities, but you do not have the time or expertise to configure it and then contact customers and carriers regarding changes. Fortunately, DCS has EDI experience with your existing EDI systems which means that upgrading can be done quickly, thoroughly, and economically. Just ask for our no-cost assessment to find out how working together with DCS EDI specialists you can learn EDI and become self-reliant.

Overview of Transport EDI

Customers and load brokers use two methods of document exchange – EDI and WebForms, but few realize you can choose. For example, you can accept a load quicker if you automate the Load Tender/Acceptance using EDI and leave Claims as is. The decision on which method should be used is determined by several factors including: Trading Partner requirements, volume of transactions, and staffing availability.

Routine high volume communication should be automated allowing your Dispatchers and Accounts Receivables staff more time to focus on solving problems and better customer service. Non-routine tasks such as claims processing are likely to remain manual due to the risk inherent.

The advantage of this method is that it eliminates a Dispatcher from having to manually key information into the Dispatch and Billing System. This results in a savings of time and money while eliminating any data entry mistakes.

All data is communicated between the carrier, shipper, and the consignee in electronic documents called “Transaction Sets.” The most commonly used 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

For more information on these Transactions Sets, click here.

The Pick-up or Delivery Messages (214) provides immediate assurance to people who expect instant updates in this smartphone age. With EDI, the notice enters their business application; they do not waste time on WebForms.

Conclusion

E-commerce allows carriers to have access to the vital information that help 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 makes them more competitive. Fast, reliable payments speed collection, eliminate bad debts and improve cash flow. 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 and 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.

You can learn more about how EDI impacts the Trucking and Transportation Industries and how DCS can help by checking out these links:

To learn more on Warehouse EDI, please read our Warehousing page.

Your next step is to e-mail DCS for a no-cost assessment.

To learn more about logistics, check out SCM EDU’s logistics glossary at https://scmedu.org/logistics-glossary/.