Electronic Data Interchange (EDI)
What exactly is Electronic Data Interchange (EDI)?
It’s how companies communicate and share documents with each other in the modern world (business-to-business). EDI automates communication and business workflows- resulting in streamlined processes for your company.
Electronic Data Interchange allows for processing bulk amounts of transactions very quickly. In the digital age, nearly every company in any industry needs a reliable EDI platform.
Ideally, Electronic Data Interchange
- saves companies man-hours and money
- practically eliminates the time it takes to share information, and
- results in greater security and fewer errors overall.
EDI codes for Transportation
The world’s economy depends on reliable transportation…And transportation companies rely on speedy, accurate, and efficient communication.
Automated EDI transactions are the key to successful communication, successful transportation companies, and ultimately a successful market.
6 of the most common Electric Data Interchange transaction codes for the Transportation industry are:
- 1. EDI 204 – Motor Carrier Load Tender
- 2. EDI 990 – Response to a Load Tender
- 3. EDI 211 – Motor Carrier Bill of Lading
- 4. EDI 210 – Motor Carrier Freight Details and Invoice
- 5. EDI 214 – Transportation Carrier Shipment Status Message
- Bonus Code!
(Note: for a complete list of transaction codes, visit https://www.edistaffing.com/resources/edi-transaction-glossary/#supplychain)
1. EDI 204 – Motor Carrier Load Tender
EDI 204 is a document that manufacturers, distributors, or retailers use to offer a shipment to a carrier. This offer specifically refers to truckload shipments.
Because this offer will be evaluated and either accepted or rejected by a carrier, it needs to include all the pertinent details. Particularly the shipper and receiver information, shipping instructions and requirements, equipment requirements, and load details.
When shippers use EDI 204, they are automating data transfers for a consistent and mistake-free offer to multiple carriers. With the added benefits of data encryption and security, EDI communication is far more convenient, accurate, and streamlined than other methods of making offers.
2. EDI 990 – Response to a Load Tender
EDI 990 is the reply to a shipment offer (EDI 204) sent from a carrier to the shipper.
As a response, this document includes the shipment identification number, both the shipper’s and the carrier’s contact information, notice of the carrier’s acceptance or rejection of the offer, and possibly either alterations to the offer or a reason for declining.
Due to the nature of EDI documents, this reply can be filled out mostly automatically based on the original offer. This results in less mistakes, a quicker response, and a more efficient process overall. Additionally, as an EDI document, there is the typical benefit of data security.
3. EDI 211 – Motor Carrier Bill of Lading
EDI 211 is a legally binding electronic document sent from the shipper to the carrier regarding a shipment agreement.
As a legal document, there are several required details that need to be laid out in EDI 211. Shipment ID number, contact information for all parties involved, the ship-to address, product quantity/size/weight, load information, expected delivery date, and shipping instructions.
EDI documents come standard with layers of encryption to preserve data security and privacy, which is even more important for a legal document such as EDI 211. Since this document can be created mostly automatically based upon previous correspondence, there is also no risk of human error to the terms of agreement.
4. EDI 210 – Motor Carrier Freight Details and Invoice
EDI 210 is an invoice sent from a carrier to a shipper with billing and payment details for a shipment.
An invoice of this nature will include the same details as a paper, emailed, or faxed invoice. The information in EDI 210 includes invoice date and number, product type/quantities, shipment size/weight/method, delivery details, the contact information of all parties, route plans and proof of delivery, and the amount due and payment terms.
There are several benefits to using EDI 210. Like other EDI documents, it will add a level of security that can’t exist in other forms of communication. Additionally, the instant and automated nature of EDI documents speeds up the billing and payment processes.
5. EDI 214 – Transportation Carrier Shipment Status Message
EDI 214 is sent by a trucking company or 3PL to a shipper or buyer, as a notification on the status of an expected shipment.
This EDI document includes the P.O. number, the contact information of all parties, shipment and load details, pickup and ship-to addresses, route information and ETA, status details (and an explanation if there is a delay), and possibly proof of delivery.
Shippers benefit from EDI 214 because they can evaluate carrier performance and verify the details on their invoices (EDI 210) before they make payments. Carriers benefit by having objective evidence of their shipments as well as more efficient invoicing and payment processes.
6. Bonus Code!
If you didn’t see the transaction type your company needs for your Transportation company, good news!
It’s possible for you to work with an integration platform to customize your own transaction type specific to your system, needs, and trading partners.
CINTAP CLOUD AND EDI
An Integration Solution for Transportation
CINTAP Cloud users don’t have to be limited to a rigid set of transaction types.
No matter your industry, CINTAP is dedicated to walking each customer through solutions to every problem. And naturally, this includes creating customized transaction types for you, so you can get back the time and resources your company needs!
As an integration platform, CINTAP streamlines EDI and business workflows. With CINTAP Cloud you can:
- accelerate your integration projects
- eliminate any redundancies
- simplify complex processes
- and provide real-time insights, so you (and your partners) have better tracking and visibility.
All this while also offering huge savings compared to other providers in the iPaaS industry!
Start optimizing today:
Get CINTAP Cloud as your solution for Transportation!
Author – Carissa Getscher