Why EDI for dropship? 2 Key Ways EDI Streamlines Online Retailers’ Dropship Supply Chain
Entrepreneurs operating e-commerce storefronts prefer to use a convenient dropship platform. In this order fulfillment method, these owners can conduct their commercial activities without having to store any inventory. When a customer buys a product from their online stores, these proprietors order the item from their supplier. This vendor then takes on the responsibility of ensuring the product reaches the purchaser’s doorsteps. In the entire process, these online retailers do not have to handle the products they sell in the market. When the customer pays for his/her purchases, these retailers take their share of the profits. Then they remit the remaining sum of money to their suppliers.
Why EDI for dropship? The technology actually streamlines online retailers’ supply chain
Prominent experts in EDI say most online retailers know how difficult it is to manage a dropship supply chain efficiently. One of the main problems these e-commerce entrepreneurs face is getting real-time data on their vendors’ inventory levels. Only then can these proprietors provide their online customers with accurate information on products they wish to buy. Otherwise, the sellers may end up losing such buyers to their competitors. There are other issues which can also ruin these purchasers’ overall experience. These include confusing product return policies, delays in status updates on orders, and poor packaging. This is why specialists suggest these retailers should consider using electronic data interchange to operate their dropship supply chain.
The experts in electronic data interchange admit many online retailers often pondering over the question of why EDI for dropship? These professionals clarify that electronic data interchange helps these entrepreneurs to streamline their dropship supply chains in the following two ways:
- Instant access to vendors’ inventory levels
When online retailers want information on their vendors’ inventory level, they send an ‘inventory inquiry’ document to their trading partners. On receiving this form, the suppliers notify the entrepreneurs on the availability of stocks in their warehouses. Under the manual process, the exchange of this document is a time-consuming process.
In some cases, it can take days for the entrepreneurs to get the relevant information. Fortunately, this is not the case when these business owners agree to use a suitable electronic data interchange platform. They can exchange this document in a matter of minutes.
- Obtaining status reports regarding the fulfillment of customers’ orders
Many e-commerce entrepreneurs may have overseas customers who buy products from them. In such cases, the products of these purchasers have to go through customs clearance in the countries where they reside. As a result, these items have a longer lead time. Nevertheless, online retailers are under an obligation to provide frequent updates regarding the fulfillment of their customers’ orders. To do so, these entrepreneurs need a status report from their suppliers. By introducing EDI technology in the dropship supply chain, these owners can provide such information to their customers within a short.
Online retailers can improve the efficiency of their dropship supply chain by introducing suitable electronic data interchange technology. Within minutes, these entrepreneurs can receive instant information regarding their vendor’s inventory levels. They can also provide status reports to their customers regarding fulfillment of their orders even if such buyers are foreigners. In the process, these owners will be taking their business to the next level.
