Electronic Data Interchange (EDI)
Published: 2023-DEC-13
Published by: Christopher Schoeder
In the context of freight and logistics, EDI stands for Electronic Data Interchange. It refers to the electronic exchange of business documents and information between different parties involved in the freight industry, such as shippers, carriers, freight forwarders, and customs agencies.
EDI enables the transfer of structured data electronically in a standardized format, allowing for efficient and automated communication between trading partners. It eliminates the need for manual data entry, paper-based documentation, and traditional communication methods like fax or email. EDI helps streamline various freight-related processes, including order placement, shipments tracking, customs documentation, invoicing, and payment reconciliation.
By using EDI, freight companies can achieve greater accuracy, speed, and visibility in their operations. It promotes seamless information flow, reduces errors and delays, and enhances overall supply chain efficiency. EDI standards, such as ANSI X12 and UN/EDIFACT, define the specific formats and protocols for data exchange, ensuring compatibility and interoperability between different systems and organizations.
Overall, EDI plays a crucial role in modern freight management, facilitating the exchange of data and streamlining processes to support timely and reliable delivery of goods.
EDI Codes
The transportation industry uses various Electronic Data Interchange (EDI) codes to facilitate electronic communication and data exchange between trading partners. Here are some commonly used EDI codes in the transportation industry:
-
EDI 204 - Motor Carrier Load Tender: Used to tender a shipments to a motor carrier including relevant details such as origin, destination, equipment requirements, and shipments characteristics.
-
EDI 210 - Motor Carrier Freight Details and Invoice: Used to provide detailed information about freight charges, including the description of goods, weight, charges, and other billing details.
-
EDI 211 - Motor Carrier Bill of Lading: Used to transmit information about the goods being shipped, the carrier, and the terms of shipment.
-
EDI 214 - Transportation Carrier Shipment Status Message: Used to provide shipments status information, such as pickup, in-transit, delivery, or exceptions.
-
EDI 997 - Functional Acknowledgment: Used to acknowledge the receipt and acceptance of an EDI transaction. It confirms the successful transmission of the message.
-
EDI 810 - Invoice: Used to provide an invoice for goods or services rendered. It includes billing details, such as the amount due, payment terms, and itemized charges.
-
EDI 820 - Payment Order/Remittance Advice: Used to provide information about payments made by a customer to a vendor, including details such as payment amounts, invoice numbers, and payment instructions.
-
EDI 856 - Advance Ship Notice (ASN): Used to provide detailed information about a shipment, including contents, packaging, carrier details, and estimated arrival times.
-
EDI 940 - Warehouse Shipping Order: Used to instruct a warehouse to ship goods to a specific location. It includes details such as item descriptions, quantities, and shipping instructions.
-
EDI 945 - Warehouse Shipping Advice: Used to confirm the shipments of goods from a warehouse. It provides information about the shipped items, quantities, and carrier details.
These are just a few examples of the commonly used EDI codes in the transportation industry. Specific codes may vary depending on the business requirements and the systems used by trading partners.