Why EDI in fashion (apparel, shoes, sportswear) - on request also available in Dutch -

1. EDI supply chain integration between fashion supplier and retailer
EDI (Electronic Data Interchange) is the exchange of business information in a structured way between eg
suppliers and retailers. EDI new style offers advantages not only for the retailer but for the suppliers as well. The
discussion often has a technical character and the details create a standoff between the parties involved. In this
business driven examples, we talk about the overall advantages that retailers experience in their day to day
business practice. This is just a list of advantages that are made possible by a structured EDI process between
retailer and supplier.
It is not required to implement all messages at the same time. The larger suppliers are most likely able to send and
receive most messages mentioned in this example. It is not required to start with all the messages at once. You
can start with your own selection to build EDI experience.
The 11 advantages of supply chain integration in apparel, shoes and sportswear
1. Product data processing: 80% to 100% quicker
When an order is written (eg at the suppliers showroom), the supplier sends the PRICAT and the ORDRSP messages to
the retailer. The PRICAT contains all article information of the ordered articles on an EAN or SKU level. In these
messages the product details like EAN article codes, suggested retail prices, quantity and product description are
provided on a detailed level, so each color and size of a specific style has its own 13-digit official EAN article code.
2. Order entry: automatic for 80% to 100%
In this way order entry activities at the retailer side can be automated (less effort and better quality of the order data).
Preferably, the retailer specify the branches for which the articles are ordered.
Note: delivery and packaging of the merchandise should preferably done in the following way in order to achieve
utmost optimalisation in the supply chain:
- Pre priced: conform the suggested retail price in the PRICAT message, on supplier branded hang tags or stickers
including the unique GTIN (EAN product identification) and corresponding EAN13-barcode.
- Pre packed per shop (if the order was split per shop): per package, merchandise for only one shop.
- Unique number per package (SSCC i.e. Serial Shipping Container Code), which number should also be part of the
DESADV message. The SSCC should be printed as the corresponding barcode on the outside of the package.
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2. 3. Handling of received goods: automated for 80% to 90%
When the goods are shipped the supplier sends a DESADV to the retailer with all EAN numbers and quantities shipped. In
this message the suppliers can add the SSCC (Serial Shipping Container Code) number and all EAN article codes per
SSCC. The SSCC code is printed as a so called EAN-128 barcode on each carton/container, so with a scanner each
container/carton can be identified including all individual articles in it!
4. Easier to check the packing list: 50% quicker
Due to the fact that the received goods are well documented it is no longer required to count all articles of a shipment.
Because of the SSCC-codes it’s known beforehand what articles should be in each container/carton. A check of random
containers will do.
5 . Pricing and labeling: 100% automated
If the goods are pré labeled by the supplier (standard brand label + suggested retail price + EAN barcode + size +
color), there’s no further handling needed at the retailer side.
6. Cross docking: 100% automated
In case of a chain store: if the goods are also pré packed per shop, much less handling is needed at the distribution
center (DC) of the retailer (sorting, labeling). In the DC the containers can put directly in the right location for shipping
to the individual shop floors.
7. Booking of invoices: 90% to 100% automated
The INVOIC message can be used to automate the receipt of the invoices directly into your financial application, on a
detailed level (GTIN i.e. EAN product code).
8. Checking of invoices: 100% automated
Because in the DEADV the same level of detail is used in the INVOIC message it is simple to match this information in a
fully automated way.
9. Product availability: much better (because of that: less mark downs!)
Because of (daily) sales reports (SLSRPT) the supplier is better informed on the actual consumer sales. Therefore the
supplier is able to anticipate earlier and makes sure there is a better product availability. The weekly inventory report
(INVRPT) further improves the insight view of the supplier at the shop floor (only regarding his own brand of course) in
order to achieve better results for both.
10. New business models (consumer driven): win-win
The combination of SLSRPT and stock positions (INVRPT) on GTIN level, are crucial for the supplier to handle those new
business models. Better sell through scores can be achieved. Structured data exchange with daily SLSRPT and weekly
INVRPT is a must to manage the risks involved for both models:
a) Concession / Consignment: the merchandise flow is fully managed by the supplier (assortment, quantities, prices,
replenishment). Goods owned by supplier till sold to consumer; retailer gets a percentage of realised sales; close
partnership with shared risks.
b) VMI (vendor managed inventory): The merchandise is owned and paid by the retailer, but the supplier in in
charge of repenishment.
11. Automated replenishment of basics (NOOS): 100% automated
The backoffice system at retailer side, generates an automated EDI ORDERS message, based on the predefined minimum
stock quantitie per style/colour/size. Result: the retailer has no order handling anymore / the supplier doesn’t have to
type in the order in his system anymore. So: win-win again.
This document is written from the retailer’s point of perspective. If you want to learn about the supplier perspective the
following is applicable:
Receive ORDERS messages, so no data entry on orders is needed anymore.
The SLSRPT offers valuable information on consumers behaviour.
New business models are possible were suppliers can have more influence on his assortment and the stock position
on the shop floor.
In the end it’s all about improving the supply chain in order to achieve better results at the retailer and at the supplier side
instead of huge mark downs at the end of the season. It’s widely proved that EDI in this new style can help achieve those
mutual goals in the fashion supply chain, which is becoming faster and faster.
Please visit www.fashionunitedindicia.com for further information about standards for implementing EDI in fashion and
available and proven services for your type of company. Or call +31 653 137303.
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