Posted in Operations and Supply Chain Terms, Total Reads: 267
Definition: Logistics Data Interchange (LDI)
Logistics Data Interchange is an automated framework to electronically transmit logistics data. It is used to transfer electronic documents such as Purchase Orders (PO), Invoices, Advance Shipping Notices (ASNs), and many more from one system to another, i.e. from one trading partner to another trading partner. It is based Electronic data Interchange(EDI) system framework.
Some of the frameworks of the EDI system in LDI are as follows
EDI 856 - Advance Ship Notice: This can be sent from the client or the warehouse to let the trading partner know the goods have been shipped and when and where to expect delivery
EDI -40 - Warehouse Shipping Order: Is used to advise the warehouse that a shipment is to be made to the designated "ship to" on the behalf of the client; it also provides detailed information concerning a warehouse shipment.
EDI -43 - Warehouse Stock Transfer Shipment Advice: The transaction set can be used by a client to advise the recipient that a transfer shipment has been made. This transaction set provides a receiving location with detailed information concerning product being shipped to that location.
EDI -44 Warehouse Stock Transfer Receipt Advice: This transaction set provides the client with detailed information concerning product that has been received.
EDI -45 Warehouse Shipping Advice: The transaction set can be used by the warehouse to advise the client that shipment was made. It is used to reconcile order quantities with shipment quantities.
EDI -47 Warehouse Inventory Adjustment Advice: The transaction set can be used to inform a warehouse/client of a quantity or status change to inventory records. This transaction set provides detailed information concerning the internal adjustments which occur between a warehouse and a client
Advantages of using Logistics Data Interchange
• Automation: LDI, through its computer to computer technology, automates the entire business document. There is no need for human intervention and this can greatly reduce your labor costs.
• Error Reduction: By not having to re-key data, this greatly reduces the potential for human error and can save your organization from costly chargebacks imposed by your trading partners for poor data
• Scalability: Communicating through EDI with your 3PL allows you to scale easily for spikes in seasonal markets, e.g. Christmas as you do not have to employ extra staff to manually key or transmit the extra orders and billing
• Speed: By communicating electronically, your orders and dispatch can be dealt with more efficiently and much faster by your 3PL. This in turn helps your organization to get paid faster and reduce your 'order to payment' cycle.