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EDI and AS2: the digital transformation of warehouse logistics

October 9, 2017  |  Digitalisation, edi

Digital society demands more and more immediacy, product availability and shorter delivery times.  For this to happen, supply processes and the movement of goods in business logistics must be optimized with standardized and electronic models that allow them to connect and send commercial information in seconds to any trade partner in the world.

In the logistics chain, warehouses play a fundamental role, facing the challenge of finding the balance between distribution and supply. All the stages of the logistics chain should have perfect communication and be connected for optimum warehouse management and control of merchandise movement.

For instant communication between warehouses and suppliers and distributors, there is an increasing demand to use EDI technology in order to save time, reduce costs, and increase security and traceability. Through standardized and automatic communication, warehouses are able to interchange a multitude of commercial documents, providing a large amount of information to the rest of the entities in the supply chain. For example, sales reports, stock reports, shipping notices, shipping instructions, etc. Using these messages automates the supply chain’s communication flow and decreases the amount of errors.

In addition to establishing these electronic communication flows in the sector, customers demand that AS2 servers make the connections. Through this standard of communication one can exchange all types of documents in a secure way using https protocol with encryption and digital signatures. This ensures the integrity, privacy and authentication of the data. A fundamental requirement of these connections is that both the sending and receiving of messages must occur between AS2 servers. For this reason, most companies decide to outsource the service to a provider like EDICOM that is always ready to send or receive any document. This means that with a specialized solution it is no longer necessary for members in a business relationship be connected at the same time to exchange data. This makes it possible to maximize the advantages of this system.

The final objective is to provide the best service to consumers, but for logistic warehouses this involves obtaining a work plan that meets delivery times and conditions. Both requirements can be achieved simply and automatically using EDI processes that respond to the needs of each entity in the supply chain.

How can you start using EDI in this sector?

EDICOM has developed different technological solutions designed for logistics such as the B2B communications infrastructure  EDICOMNet, the VMI tool or Vendor Management Inventory and the possibility of exchanging communications through AS2 servers with any partner that requires it.

Thanks to them, the large companies in this sector at the international level have simplified and improved their day-to-day management.

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