As a retailer or wholesaler, much of the daily operations revolves around data exchange with suppliers. Product stock and pricing is continuously updated, new product offerings need to be added, and purchase orders must be sent out to fulfill client orders or replenish stock. This can equate to a full-time job for several employees, if not entire departments.
Electronic Data Interchange (EDI) integrations are a great solution to reduce manual effort in many of these processes. EDI helps automate communication with your suppliers, improving efficiency and reducing errors. This article will explain the benefits of EDI integrations for catalog management, stock updates, and purchase orders. We will discuss what EDI is, the different EDI formats, why the right solution partner is crucial, and how to use an Integration Platform as a Service (IPaaS) solution to integrate EDI into Shopware.
Benefits of automating integrations
Catalog management: With EDI, product catalogs are automatically updated. You don't need to manually enter new products or change details. This saves time and ensures accuracy.
Stock updates: EDI keeps your stock levels accurate. Suppliers can send stock updates directly to your system, so your Shopware store always shows correct stock levels.
Purchase orders: Automating purchase orders with EDI means orders are sent to suppliers instantly. This speeds up the process and reduces the risk of errors in order details.
What is EDI?
Electronic Data Interchange (EDI) is a technology that allows different businesses to exchange documents in a standardized electronic format. Instead of using paper, email, or fax, businesses can send documents like purchase orders and invoices directly from one computer system to another. EDI was first introduced in the 1960s and became more widely adopted in the 1980s and 1990s. This technology helps ensure that the data is accurate and sent quickly.
For EDI to work, both the supplier and the retailer need to have EDI implemented. This is often initiated by the supplier. EDI is ideal for automating integrations because it standardizes the data exchange process. It allows different systems to communicate easily, reducing the need for manual work and minimizing mistakes.
Understanding EDI formats
There are different EDI formats, and knowing their differences is important:
ANSI X12: Common in the United States, used for various business documents.
EDIFACT: Widely used in Europe and internationally.
Proprietary variants: Some companies and software providers, like COMARCH, have their own EDI standards. These are tailored to specific business needs and may offer additional features.
Industry-specific variants: Certain industries have their own EDI standards. For example, the automotive industry uses standards like ODETTE, while the retail industry may use standards developed by GS1.
Each format has its strengths, and the choice depends on your specific needs and the region you operate in. While EDI is a standardized document format, it is by no means plug and play. Each party has their own specific values for specific fields, and ultimately a mapping between these values needs to be made. For example, while you might use a product property called "table top color" with a value such as "Dark Oak", a supplier might call that same property "surface color" with a property value of "Brown wood".
The value of an EDI implementation partner
Reaping the benefits of EDI is as much a technical matter as it is one of connecting to the right network. EDI implementation partners build networks of companies for which they already have existing integrations and, more importantly, value mappings. These companies might also have their own format standards, such as COMARCH. Most EDI implementation partners offer their own modern API layer, which simplifies the integration process. This API layer allows you to connect your Shopware system to the EDI network more easily and efficiently.
The right partner will advise on which formats to support, can quickly integrate a large number of suppliers, and helps with creating the mapping to your specific data models. This means you can leverage their expertise and existing connections to make the integration process smoother and more efficient.
Integrating via EDI with Shopware
Generally, integrations are made via an ERP, OMS, or IMS system, and less so directly with an ecommerce platform. Having said that, direct integration with Shopware can be a valid approach.
We recommend leveraging an IPaaS solution to connect with the APIs of the EDI implementation partner. If only one supplier is integrated, it might be an option to directly ingest the EDI documents into the IPaaS solution, although this might lead to more maintenance work over time.
From the IPaaS solution, the integration with Shopware is quickly made by finding the standard integration in the IPaaS solution's integration store.
Conclusion
Leveraging EDI integrations with Shopware can greatly enhance your business operations. Automating catalog updates, stock management, and purchase orders improves efficiency and accuracy. Understanding different EDI formats helps you choose the right one for your needs. Finding a partner with a large network can simplify the process, or you can opt for an IPaaS solution to manage integrations yourself. Embracing EDI integrations will streamline your business and help you stay competitive in the market.
