It might seem odd that EDI, data exchange technology that’s been in existence for more than two decades, is the saving grace for global commerce. But, according to James H. Davis, director of sales for Amosoft, an EDI services and solutions entity, a vast majority of all commerce utilizes EDI. “EDI is older technology that continues to be significant in today’s global supply chain,” says Davis.
EDI is integral to the execution of global commerce because it matches newer technologies with international markets governed by their own EDI requirements, says Davis. While EDI itself is not a new offering, it continues to be integral to the way players in the global commerce marketplace communicate with one another, including suppliers, warehouses and manufacturers.
Since EDI plays such a major role in the global supply chain, companies seeking to join the chain “need to understand the elements of supply chain including data requirements,” says Davis. For example, if a company is going to sell their wares over the Internet, matters to be considered include:
• Deciphering various web service options available, such as Shopify, BigCommerce or Magenta
• Understanding the various players in a supply chain, like drop shippers vs. 3pl warehouses
• Deciding whether to outsource a company’s EDI needs to experts
It’s extremely important for suppliers to be certain they are utilizing a communication system that can be understood by vendors with whom they are conducting business.
One way to do is contacting vendors to inquire about their data communication requirements. If the EDI needs outlined by vendors is too complex to be handled in-house, then it’s time to contact a company like Amosoft, DiCentral or one its competitors and request a price quote.
“Regardless of the size of someone’s EDI needs, companies can implement all facets of supply chain at a reasonable cost. You don’t need to be Amazon to be successful in the global supply chain,” says Davis.