Entrepreneurs who want to make their mark in the marketplace generally venture into the field of e-commerce. They are well aware that online retail trade is increasing at a phenomenal rate. These businessmen intend to exploit this trend to make their fortune. Many of them have no reservations on using a suitable dropshipping platform to operate their businesses. They regard it as an ideal customer order fulfillment system. In the process, they don’t incur certain costs, unlike owners of brick and mortar stores. These include inventory, transportation, packaging, warehousing, and insurance. This enables them to pass on the savings on such expenses to their clients. As a result, these individuals end up paying less for the product they purchase.
Is it worthwhile for entrepreneurs to incorporate EDI for drop ship supply-chain?
Dropshipping no doubt works wonders for entrepreneurs conducting their activities in the area of online retailing. However, it doesn’t take these businessmen very long to realize the harsh truth of this supply-chain. Operating and managing the system efficiently can be a challenge for them. At the end of the day, these businessmen don’t carry any inventory. They need real-time access to their suppliers’ stock levels to fulfill their customers’ orders. A single misinterpretation of this data is enough to ruin the reputation of their establishments. It is a situation which these proprietors certainly don’t want to face for obvious reasons. This is where incorporating a suitable EDI mechanism into the supply-chain comes into the picture.
Industry experts state the following 2 important benefits entrepreneurs can enjoy by integrating edi for drop ship:
- Introduces automation within the entrepreneurs’ supply-chain
When fulfilling their customers’ orders, entrepreneurs need to be aware of suppliers’ current inventory levels. Only then can they notify these individuals on availability of what they want to acquire. For this, the proprietors exchange documents between their trading partners which industry expert refer to 846. Integrating a suitable EDI system into the dropship platform enables these businessmen to this online. All they need is a reliable internet connection to communicate with each other. This minimizes inadvertent human errors, which are common in a manual set-up. On top of this, it possible to complete the entire process in a matter of minutes.
- Ensure proper monitoring of customers’ products
When the suppliers ship what the customers of these businessmen order, they dispatch a document. Industry experts refer to this paperwork as Advance shipping notice (856). Entrepreneurs can inform their clients of the current status of their orders by monitoring its tracking number. Integrating an EDI system into their drop ship platform allows these proprietors can do this online. In the process, they clear any doubts in the minds of their purchasers on this issue.
Introducing and integrating a suitable edi for drop ship platform is a necessity for entrepreneurs. The above 2 important advantages of taking this step prove this fact beyond any doubt. It is a game-changer for their businesses in the long-run. They are able to go one step closer to gaining a competitive edge in the marketplace. This is what these businessmen want at the end of the day.