Electronic Data Interchange (EDI) Goes Live
Electronic Data Interchange (EDI) is the structured transmission of data from one computer system to another in an agreed format without human intervention. In this instance, the transfer of data is between BASF SAP system and our logistics provider, Freight Forwarders Solutions’ (FFS) system. Automating the exchange of data between applications across the supply chain ensures that business-critical data is sent on time and can be tracked in real time.
EDI is useful for efficient and effective supply chain management, because EDI helps reduce lead time, save documentation processing cost, eliminate errors, clarify inventory status information, and enhance strategic alliances throughout the supply chain. With this advanced solution, the flow of documents between BASF and FFS related to logistics will be realized in electronic form and immediately without delays.
With EDI, we expect to speed up business cycles since transaction exchange will take minutes not hours. Further, the quality of data is expected to improve with reduction in transaction errors attributed with human intervention. This will ultimately reduce order processing and delivery times hence reduction in inventory levels. EDI also promotes corporate social responsibility and sustainability by replacing paper-based processes with electronic alternatives. This will both save BASF and FFS money and reduce CO2 emissions.
Ultimately, EDI will allow our BASF logistics teams to concentrate on higher-value tasks. Likewise, FFS, our logistics service provider can spend more time focused on the task at hand of getting BASF shipments to the customer, rather than going through emails or sorting through paper.