Introduction to EDI and Walmart EDI How Does It's Work?

What is EDI?
Electronic Data Interchange is simply a digital exchange between suppliers and retailers of documents. The process of EDI is divided into two parts: translation and communication: Your business document will be changed and formatted to a standard EDI format in the EDI tran

There is nothing complicated about an EDI report. You will have most of the same information on a paper document that is normally used for the same business direction.

If your product is shipped from a warehouse to a retailer, your EDI form can include:

  • Shipping address
  • Billing address
  • Product numbers
  • Quantities of products

EDI may also be used to communicate with other suppliers and retailers.

EDI is a good fit for:

  • Companies with difficult entries with high volumes
  • a business that ships again and again per week or perhaps again and again per day, and has cargos with 100s or 1000s of SKU/Parts/Products per shipment
  • Companies that have access thereto resources to help with the event of the processes on the consumer aspect making ready documents/files for the EDI progress.

What is Walmart EDI?

As a manufacturer, you are happy for a few days the day you become a Walmart supplier. This is because they can provide the type of market presence that a supplier can only dream of with their reach. Nevertheless, there are some drawbacks to Walmart. Some of them are Walmart EDI; much more specifically, the online retailer insists that its suppliers exchange transaction data using a specific EDI configuration. This is what is called Walmart EDI and can frustrate new suppliers. Part of the challenge stems from the fact that, in order to comply with Walmart EDI, you may need to pass a series of tests to ensure that the online retailer has the required software and the necessary requirements to ensure a smooth EDI exchange.

The implementation of EDI gives small companies the chance to work with large box retailers to generate additional revenue.

EDI was commissioned with large retail chains like Walmart, and all its trading partners must adjust the format. Small companies with EDI have the opportunity to trade with Walmart and create credibility because of EDI's improved accuracy. EDI For Walmart still opens the door to other trading parties even if small businesses do not trade with big box retailers.

All Walmart vendors must have fulfilled the following requirements before starting the EDI communication and test process:

  • Establish AS2 Walmart Communication Test
  • Test all internal flows and make them operational before the EDI data test.
  • Check that you have active items.
  • Notify the purchaser or the sales representative of the vendors to ensure that the vendors have active Walmart products. They can't test if you don't have active items.

EDI Documents Require for Walmart

  • 810 Invoice
  • 812 Credit/Debit Adjustment
  • 816 Organizational Relationships
  • 820 Payment Order/ Remittance Advice
  • 824 Application Advice
  • 830 Planning Schedule with Release Capability
  • 846 Inventory Inquiry/ Advice
  • 850 Purchase Order
  • 855 Purchase Order Acknowledgement
  • 856 Advance Shipment Notice
  • 864 Text Message
  • 940 Warehouse Shipping Order

Any files outside these documents are considered to be specialist documents and require all suppliers to complete the complete EDI setup and the testing process described. In most cases it will not take more than two weeks to set up EDI and data testing. Walmart is allowed to test all basic documents for up to six weeks. Although exceptions exist, most vendors simultaneously test all basic documents. If the test takes more than six weeks, the supplier may be removed for non- compliance from the EDI test. If a manufacturer has more than six weeks to set up and test EDI, they must contact the Walmart team as soon as possible and provide both an ETA and a reason for the test to exceed the six- week period.

Compliant with Walmart EDI

The fastest and easiest way to comply with Walmart EDI is to simply use its web- based system to exchange transactions with the retail giant to ensure compliance. When you use their system, this is the fastest and most affordable way for many companies to comply with Walmart EDI. However, one of the problems that many suppliers soon face is that they begin to realize the benefits of EDI and start exploring the use of EDI with other clients. Once Walmart's own system is used, it is no longer a viable option, as it only works with Walmart. Using either in- house or hosted EDI software, you can continue to work with your larger customers and maintain compliance with Walmart EDI.

When you begin to explore the option of using in- house software, you should be aware that EDI software can be developed in various ways. EDI software providers can be really basic- only supporting the entire X12 standard- or very advanced- providing pre- configured kits that allow you to quickly and easily comply with Walmart EDI. The latter is much preferable to the former for the vast majority of business owners.

Increase your Walmart EDI usage

The first move in being Walmart EDI compliant is to ensure that you meet the needs of the retail giant. What about your own, however? More exactly, is there a way to maintain compliance with your Walmart EDI, but to be more efficient? The answer is obviously; and the way to do this is to allow your EDI system to be fully integrated into your ERP backend system.

Any Walmart EDI orders you receive will be processed, translated and automatically routed into your ERP system as sales orders through full integration.

When you are ready to ship the products, the inverse will occur and the slips and invoices of your ERP will be translated and sent as advanced ship notices and invoices from Walmart EDI.

Do all Walmart suppliers have EDIs to use?

Walmart recognizes the limitations of small suppliers and examined the EDI process carefully. Depending on your invoice volume, you can reduce your costs in this field.

According to Walmart guidelines, if your company plans to make more than 5,500 invoices per year, you will have to use EDI using the AS2 protocol.

Smaller companies have an option, If your company can do less than 5,500 safely in one year, you can still use EDI using the AS2 protocol. You have the choice, however, to use EDI via Amosoft.

 

Choose your EDI Walmart Package

This integration form can be accomplished with a percentage of Walmart EDI compliant software packages, but you should guarantee that the package you choose can provide this option in the long run with minimal re- architecture of your Walmart EDI setup. There are actually a number of Walmart EDI solutions that require you to completely re- engineer your EDI operations in order to achieve integration.

However this particular move, which can be less expensive in the beginning, can become very expensive in the long run, as it not only requires a lot of internal rework, but also risks compliance with your Walmart EDI.

Amosoft EDI is a web- based solution that enables your company to send invoices and receive purchase orders without the EDI package costs.