How EDI, Automatic Payments Are Helping Manufacturing
In our last blog, we discussed how we’ve noticed an uptick in the agricultural industry, and while that’s true, we also want to discuss another in processing orders and payment for goods and services we’ve seen: the integration of technology like electronic data interchange.
Through various mechanisms, we supply products for production and/or the aftermarket for our customers, and computer software has evolved to the point where some of our customers have converted to an automatic payment system—saving time and expense along the way.
Now, the day we ship a product, we head to a portal; upload the information about the shipment that we’re making and that information gets uploaded to the customers’ server. This aggregates information and triggers a system, where once the shipment is received and the barcode scanned is in, the transaction creates and internal invoice and subsequent payment through the banking system. At the end of the process, we get a wire transfer to our account or a paper check.
This streamlined process eliminates the action of mailing an invoice on our end. In some cases, our input of the shipment information triggers scheduled truck pick up. On the customer side, they realize savings due to a reduction of errors, a shortened cycle time and labor. Our customers are now converting their logistics management function to increased automation. EDI might eventually control the most—if not all—of the process from start to finish.