Technology

Christmas, BlackFriday … the emerging face of EDI!

The strong recovery in economic activity surprised everyone. For more than a year, people have spent very little and are now ready to pull out their wallets to indulge after months of restrictions.

This explosion in demand has a direct impact on supply chains, which have all the difficulties in the world to absorb this high flow. In the United States, the ports of Long Beach and Los Angeles, through which 40% of the flow of goods from abroad passes, are saturated.

Until now, Western industries have in fact focused their sourcing on Asian countries, particularly China, the cradle of the global crisis. However, for almost two years, Asian factories have reduced their production rates, causing the shortages and global supply difficulties we encounter today.

And if we hear more and more about offshoring, buffer stocks, or the continentalization of production, all of this won’t come true for several years. Meanwhile, it is today that this dependence on Asia is disrupting global consumption.

EDI, at the center of procurement problems

Faced with this bottleneck in supply, which should increase even more with the arrival of Christmas, EDI for Electronic Data Interchange is presented as the tool that can make the situation more acceptable at its level. The backbone of large organizations, which generate 50% of their turnover thanks to EDI, this technology is proving its effectiveness day by day.

This is why we hear so little about it. When something works, we tend to forget it.

Because it was born almost 50 years ago with the consumer society and to cope with increasing volumes, as well as the globalization of commerce, EDI is sometimes considered obsolete. In reality, this technology has always been able to adapt to developments.

Today, EDI is capable, for example, of supplying data to a logistics blockchain to guarantee the traceability of physical goods. Of course, this technology alone will not solve the logistical problem, but, at this critical moment in which the transmission of standardized and structured information between the different actors in the supply chain is essential, it will guarantee a better flow of information. .

EDI and Santa Claus

EDI is a key factor in the transmission of information in real time, which is at the heart of an efficient supply. This technology standardizes exchanges between the different logistics actors, wherever they come from: regulatory agents in ports, road or rail transporters, logistics managers in warehouses or even in stores.

To manage these flows, everything is based on digital exchanges based on communication standards, which make EDI both cross-sectoral and international. In the general process of a globalized supply chain, physical goods are accompanied by an EDI flow, which ensures their traceability and informs customers about the location and delivery date of their goods.

Therefore, the hyperperformance of this technology today responds to the hyperconsumption of our society, which is reaching its peak this year. He unties the knots that are currently being formed in the global supply chain, presenting himself as one of the few, therefore, in being able to save Christmas.

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