EDI

WHAT IS EDI?

 

EDI - Electronic Data Interchange - is the computer-to-computer exchange of structured business information in a standard electronic format, without the need of human intervention. For example, a customer’s computer might send an order to a supplier’s computer, which in turn would enter the information automatically into the sales order entry system.

 

Customers may send their EDI messages to Sonae Arauco directly from their systems, turning the processes more automatized and saving time and effort to both parties.

Orders When the customer send the orders by using EDI, they will have a faster processing time since the orders will be automatically integrated into Sonae Arauco sales processing system. This eliminates processing errors and turn ordering processes easier and faster.
Orders confirmation Confirmed Quantities, Prices and dates will be sent to the customer’s system and can be automatically matched against the original purchase order.
Dispatch information Also known as shipping notification, it means that the client will receive in advance the exact information when the truck leaves Sonae Arauco facilities. With this information, the customer can prepare the warehouse, adjust the production plan or create automatically inbound receptions in the system.
Invoices Invoices will be integrated into customer system automatically, increasing accounts payables team efficiency. Invoice matching and posting workflow processes can be built. Faster processing times will allow customers to take full advantage of timely payment discounts, besides reducing costs by saving on paper handling, scanning and storage.

BENEFITS OF USING EDI

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Reduced costs

EDI reduces the costs of staff, supplies, and office and storage space. Moving from a manual to an EDI process frees up staff to concentrate on other aspects of the business.

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Improved data quality

When bad data makes its way into internal systems, such as the supplier’s sales order processing, the customer’s accounts payable or transportation management systems, that bad data has a negative impact on the business. The integration of business documents via EDI enables business data to be fed directly into the internal systems without relying on manual re-keying. Having more accurate data means that the entire supply chain becomes more efficient.

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Shorter business cycle

EDI transactions can be exchanged and integrated in minutes. There is significant time saved by the elimination of data re-keying and its high error rate, which results in time-consuming corrective actions.

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Improved business efficiency

The use of EDI reduces order processing times since order data sent by customer will automatically be integrated into Sonae Arauco SAP sales order processing system. EDI ordering and shipping provide greater visibility into the supply chain, leading to fewer stockouts and eventual lost sales. EDI invoicing enables customers to process and approve invoice payments faster. This allows customers to take full advantage of timely payment discounts, which in turn means improved cash flow for the suppliers.

IMPLEMENTATION STEPS

 

After establishing an agreement for implementing EDI between Sonae Arauco and the customer, it is necessary to define what are the EDI business messages in the scope.

Sonae Arauco can implement one or more EDI messages, according to each customer needs, increasing security, reducing errors, and maximizing cost savings.

EDI Implementations Steps EN

INFORMATION REQUEST

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