3 Ways EDI Reduces Chargebacks for Food and Beverage Companies

Posted by Brooke Lester on Jan 22, 2020 4:24 PM

3 Ways EDI Reduces Chargebacks for Food and Beverage Companies

It is an irritating situation. You ship a product to a customer, and when it gets there, you get an angry call that the invoice or advance ship notice (ASN) does not match the PO or the shipment. However, it is not just the angry call – there are chargebacks associated. Not only can too many chargebacks add up, but they hurt your reputation.

Chargebacks do not have to be a fact of life, though. Food and beverage EDI helps drastically eliminate them in three ways: by eliminating data entry, by making the ASN accurate, and by increasing visibility into the supply chain.

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Eliminate Manual Data Entry

You have heard the saying, “To err is human, to forgive is divine.” It is true that humans make mistakes. Data entry is one particular area in which mistakes happen frequently.

However, they do not have to happen. Food and beverage EDI reduces those mistakes because it automates the data entry process. Automation eliminates human intervention.

“Food and beverage automates data entry, drastically reducing human errors.”

How does food and beverage EDI automate processes? This type of EDI solution works the same way as EDI solutions in use within other industries; it transmits data electronically. Food and beverage EDI takes information from one computer and sends it to another computer – there is no need for a human to input information.

Make the ASN Accurate

One of the causes of chargebacks is that the ASN does not contain accurate information. When the ASN contains the right information, your customers will not claim chargebacks. How do you achieve that? 

The answer lies yet again in food and beverage EDI solutions’ ability to automate processes. No human being has to be involved in generating an ASN; it is an action that the food and beverage EDI solution does on its own. Because the EDI solution takes information from one computer to another to create an ASN, the chances that it will be accurate are much higher than if a human produced the ASN.

Increase Visibility into the Supply Chain

Another benefit of using food and beverage EDI is that it increases visibility into the supply chain. It does that by centralizing information in one place.

Go back to manual processes. If you are keeping track of how your business runs on paper, in emails, or in spreadsheets, you do not have a full picture of what is going on. Your information is housed in silos across your organization, and who knows whether there is duplicated data or if that information is even accurate in the first place?

“Manual processes mean that information is stored in silos across your organization.”

Food and beverage EDI breaks down those silos, creating a centralized repository of data of purchase orders, ASNs, invoices, and other documentation. You never have to wonder who has bought what or what orders have gone out; that information is at the tip of your fingers.

No matter how successful you are, no one can afford chargebacks. They not only hurt your bottom line, but they damage your reputation. Food and beverage EDI eliminates chargebacks by automating data flows in and out of your firm.  Are you ready for data integration? Get the assessment. Absolutely free.

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