SupplyChain

Home » SupplyChain
3PLs and EDI
Crackerjack-IT Blog

How Does EDI Work with 3PLs?

February 21, 2025 by

Electronic Data Interchange (EDI) enhances communication between suppliers, retailers, and third-party logistics providers (3PLs), ensuring seamless order fulfillment and inventory management. When a retailer places an order (EDI 850), the supplier forwards it to the 3PL for processing. The 3PL then sends an advance shipping notice (EDI 856) to the retailer before shipment. To initiate fulfillment, the supplier issues a warehouse shipping order (EDI 940), and once the 3PL ships the order, they confirm the details via warehouse shipping advice (EDI 945). Real-time inventory updates (EDI 846) help suppliers maintain accurate stock levels, while invoices (EDI 810) automate billing. By integrating EDI, businesses improve efficiency, accuracy, and transparency in supply chain operations.… Read More

EDI Chargebacks
Crackerjack-IT Blog

What Are EDI Chargebacks?

February 19, 2025 by

EDI (Electronic Data Interchange) chargebacks occur when retailers penalize suppliers for failing to meet specific supply chain and data exchange requirements, ensuring operational efficiency. Common triggers include late or missing Advance Shipping Notices (ASNs), incorrect invoice data, labeling issues, and shipment discrepancies. Major retailers like Walmart, Amazon, and Target enforce strict compliance guidelines, issuing chargebacks for errors that disrupt their supply chains. To minimize these penalties, suppliers should review retailer compliance guides, invest in reliable EDI technology, and conduct regular audits to ensure accuracy in shipments and documentation.… Read More

Crackerjack-IT Blog

Exploring EDI Communication Protocols: VAN, sFTP, FTP, AS2, and METL

February 10, 2025 by

EDI communication relies on various protocols to ensure secure and efficient data exchange. VAN offers managed services for security and compliance, making it ideal for industries like retail and healthcare. sFTP provides cost-effective, encrypted transfers for direct partner communication, while FTP, though simple and widely supported, lacks inherent security. AS2 ensures encrypted, point-to-point data exchange with real-time acknowledgments, commonly used in retail and logistics. METL integrates multiple protocols and translates data formats, simplifying EDI for businesses of all sizes. The right choice depends on security needs, cost, and partner requirements.… Read More