EDI for Manufacturing
The manufacturing industry relies on the effective flow of information in the supply chain to accomplish many of the required tasks for getting products to market. Suppliers and buyers in the manufacturing industry use generally accepted industry processes in the supply chain to support the distribution of products to mass markets at competitive prices.
EDI (Electronic Data Interchange) is the method of choice for helping manufacturers to increase their supply chain productivity through accurate and timely transactions.
CovalentWorks provides web-based EDI solutions that streamline the labor-intensive processes associated with the day-to-day activities for moving products through the supply chain. CovalentWorks supports all the required EDI transaction types.
The supply chain cycle starts with an EDI Purchase Order, which is one of the most common EDI transactions. The supplier then sends back an EDI Functional Acknowledgment that lets the sender know the order was received. The next step is an EDI purchase Order Acknowledgment to confirm that the supplier will provide what the buyer requested in the Purchase Order.
From there, the manufacturer will alert the customer that they are shipping an order with an EDI Advance Shipping Notice. Then an EDI Invoice is sent to indicate the amount the customer owes the supplier. The customer will respond with a Payment Order, also known as a Payment Remittance Advice, that tells the supplier which the invoice has been paid and for how much. The Payment Order closes out the life cycle of an order.