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EDI Shipping and Logistics History and Uses

When it comes to EDI shipping and the freight industry have been using this technology for decades and it has proven to be a top which has provided an enormous amount of benefits for those companies which work within these industries. In the last decade we have seen more businesses than ever before look to implement EDI systems in their own sectors because of these benefits and thanks to the advancements in the technology used for these systems, they are working better and faster than ever before. We are going to take a brief look today at the uses of EDI systems in shipping and the freight industry, how it works and how it has supported this industry for so many years.

History of EDI in Shipping

Whilst there are many industries which have only just began to use EDI systems we have actually seen this in use in the shipping industry since the late 50s. Naturally he electronic exchange of data back then was slightly different and less capable than what we have now but the principles of the system were very much the same. Using codes to recognize orders was something which took off very quickly indeed and it is no surprise that this still plays a key role in the shipping industry in the current day.

What EDI Systems Provide

Though the use of an EDI system those involved in the freight and shipping industry can perform a great deal. Response times can be cut, management accuracy can be enhanced, customer service can be greatly improved and the automation of the generation, sending, recording and reception of documents such as invoices is greatly impaired.

Real Benefits of ED Systems

Through these important functions of an EDI system we can find many benefits that companies within the shipping industry can enjoy. The biggest benefit here is the enormous cost saving which we see with those businesses that are using an EDI system. The cost saving comes through the increased speed and accuracy of orders and delivery, the reduction in need for paper, printing and everything which is associated to the processing of orders and printing, not to mention the reduction in errors which can often cost huge sums of money. Furthermore there is the simple recording of orders and documentation which is essential in the shipping industry. Beyond this there is the improved relationships between businesses thanks to accurate orders every time, a reduction in the stop over times of ships and from the port’s point of view, and EDI system gives them a clear understanding of what they have and where they have it.

Ultimately without an EDI system the shipping and freight industry would be massively slowed down and the consequences of that would be felt far and wide by both other businesses and the consumer. It is clear that this is a system which has increased speed, efficiency and accuracy of the shipping industry, passing on an enormous cost saving to those businesses which have implanted an EDI system.

 

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Hey Everyone! It's me, Lisa.  I'm the writer and editor of IGD Leaders-your complete online resources in business, leadership, and careers.

I balance my time with taking care of my family while learning, researching, and writing about the things I'm passionate about. My focus is to create a connection and draw inspiration from businesses, leaders, or entrepreneurs in the food and consumer industries. Read More…

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About Us

Hey Everyone! It's me, Lisa.  I'm the writer and editor of IGD Leaders-your complete online resources in business, leadership, and careers.

I balance my time with taking care of my family while learning, researching, and writing about the things I'm passionate about. My focus is to create a connection and draw inspiration from businesses, leaders, or entrepreneurs in the food and consumer industries. Read More…

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