How EDI benefits the FMCG industry
EDI helps businesses in the FMCG Industry get products on major retailers shelves quicker than paper based methods. Utilising an EDI system makes working with multiple businesses easier.
What is FMCG?
The fast-moving consumer goods industry is responsible for household products you see in a pharmacy or supermarket. But, FMCG products are perishable and as a result, have a short shelve life. The fast aspect of FMCG goods is because the goods are often rapidly bought due to their low prices. In the eyes of marketers, FMCG items can be bought in bulk for a low cost with massive turnover.
What is EDI software
EDI is the process of transferring electronic data between businesses. This is done by sending EDI files over an EDI network. Businesses using an EDI solution increases business efficiency and save money. This is done by decreasing the amount of data handled by humans, validations to check data entered into fields is correct and removing the need to send paper-based business documents between trading partners and businesses.
More information on ‘What is EDI’ click here.
More information on ‘The Concept of EDI’ click here.
EDI data is interpreted by computers instead of humans. As a result of this EDI standards were created to help computers understand EDI documents.
The different standards of EDI are different interpretations of how EDI should be formatted. Europeans businesses using an EDI system while typically use the EDIFACT standard. Whereas companies bases in the US will use the X12 standard. If a business based in the UK was to make a connection with an American company, the EDI provider would need to be able to use the standard the American company requires.
More information on ‘EDI standards’ click here.