According to a research study from Forrester, EDI continues to prove its worth as an electronic message data format. This research states that “the annual volume of global EDI transactions exceeds 20 billion per year and is still growing.”

As a shipper in today’s growing market, there are many advantages to shifting to the use of transportation EDI with your transportation providers or 3PLs. If you are unfamiliar with the concept of EDI, read our first post in this series on what is EDI in transportation and how it works, but as a quick recap, essentially, EDI takes human interaction out of the equation completely, and lets technology take over.

EDI isn’t a new technology in and of itself. In fact, some industries, such as trucking, automotive, finance, and even government have been using EDI for years. However, now that shippers (and consumers) are making the shift to doing more and more of their everyday tasks through computer technology, transportation EDI is the obvious choice for companies who want to be in on this rapidly growing trend in transportation technology. There are many benefits of transportation EDI which are a value added service via a transportation management system offered by transportation providers or 3PLs.

4 Main Benefits of Transportation EDI Utilized by Shippers within a TMS

For shippers or 3PLs that handle numerous transactions, using EDI, typically within a TMS, can result in millions of dollars of annual savings due to early payment discounts. From a financial perspective alone, there are impressive benefits from implementing EDI. Exchanging documents electronically improves transaction speed and visibility while decreasing the amount of money you spend on manual processes. But cost savings is far from the only benefit of using transportation EDI in a TMS.

But let’s start with Cost Savings anyway:

The major benefits of EDI are often stated as Speed and Accuracy:

However, the increase in Business Efficiency is also a major factor:

In many cases, the greatest transportation EDI benefits come at the Strategic Business Level:

The sheer amount of information that you can gain through utilizing EDI with your transportation providers is a huge asset to any business. By switching to transportation EDI you will have more information at your fingertips. You can trace orders completely from start to finish, and see where they are at all times. You can have all of the tracing information for each order, see how quickly orders are moving, and if there is down time that doesn’t need to be there. You can also get delivery confirmations to see just how efficient your transportation providers are being with your shipments. This can give you, as the shipper, better insight into whether or not your transportation management services provider is truly meeting your needs.

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