How EDI Is Used in the Food and Drink Supply Chain.

EDI in the Food and Drink Supply Chain title page with warehouse worker in front of food holding tablet looking at data

Electronic Data Interchange (EDI) for food and drink automates business transactions between suppliers, distributors, and retailers. Companies use this electronic system to send orders, invoices, and shipping notices directly between computer systems.

Food businesses work under tight deadlines. A supermarket needs fresh produce delivered by morning, and manual processes create delays that cost money. EDI connects these systems automatically, reducing errors while speeding up operations from ordering to delivery. 

When integrated with warehouse management systems like Infios (formerly Körber), the entire supply chain becomes more efficient and responsive.

“When order processing is manual, mistakes like keying errors or overlooked orders can delay dispatch, causing food warehouses to miss tight delivery windows and risk spoilage. EDI automates and validates orders instantly, eliminating manual errors and ensuring accurate, timely dispatch—helping teams consistently meet delivery cut-offs.”

– Milan Logman, WMS Software Consultant at Balloon One

Key Takeaways:

  • Electronic Data Interchange (EDI) eliminates manual paperwork in the food supply chain, speeding up orders and reducing costly errors.
  • Product traceability through EDI connects batch data across systems, while temperature logs from separate monitoring devices can be linked to these records.
  • Connected systems (EDI-WMS-ERP) trigger automated warehouse tasks without human intervention.
  • Advanced Shipping Notices prepare receiving teams ahead of deliveries, meeting crucial retailer requirements.
  • Supporting industry-standard formats ensures compliance with major grocery chains and simplifies exports.

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Contents
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    Replacing Manual Order Entry with EDI.

    Sending and Receiving Orders Automatically

    Automatic order processing removes the need to type data into computers. When a retailer needs more products, their system sends the order directly to the supplier’s system.

    The ORDERS transaction set contains all needed details: product codes, quantities, prices, and delivery dates. This standard format ensures both buyer and seller systems understand the information correctly.

    Automated ordering helps food suppliers by:

    • Removing manual data entry
    • Cutting down on errors
    • Making orders happen faster
    • Stopping duplicate orders

    This direct connection stops mistakes. The error of ordering 100 cases instead of 10 vanishes when computers handle the communication. For busy food companies handling many orders daily, this accuracy improves customer satisfaction.

    Confirming Orders Without Delays

    Order confirmations return to buyers in seconds with EDI. When an order arrives, the supplier’s system checks stock levels and sends back a message about what can be fulfilled.

    This quick feedback starts the next steps right away. Warehouse staff begin picking products sooner, delivery trucks get scheduled faster, and everyone knows what’s happening. No waiting for someone to check emails or return phone calls.

    What Traceability Actually Looks Like with EDI.

    man and woman in warehouse holding scanners in front of vegetables black and white

    Batch and Expiry Tracking in Every File

     

    Product traceability happens automatically as EDI messages contain tracking data for food products. When yoghurt leaves a production facility, EDI records show which production batch it came from, when it was made, and when it expires.

    Traceability Element Role in Food Supply Chain
    Batch Numbers Connect products to specific production runs
    Expiry Dates Enable proper stock rotation and freshness
    Production Information Support quality control and safety compliance
    Storage Requirements Storage Requirements Ensure proper handling throughout distribution

    While EDI handles batch and production data transfer, it works with other systems too. Temperature monitoring devices track cold storage for perishables, with their data then connected to the product information in EDI records. This approach protects items like fish, meat, and frozen foods by confirming they stayed at safe temperatures during transport.

    Food companies use this tracking to manage inventory based on expiry dates. The system sends out products with the shortest shelf life first, cutting waste and delivering fresher items to customers.

    Fast Response to Recalls and Audits

    Traceability shows its value during safety problems. When officials find a contaminated ingredient, EDI-enabled traceability helps companies quickly find which products contain the affected batch.

    This speed allows targeted recalls. Instead of removing all products, companies can pinpoint exactly which production runs, delivery dates, and store locations received the affected items. For fresh goods like prepared meals or produce, this precision saves lots of safe food from being thrown away.

    Food inspectors now expect digital records during checks. EDI systems provide these records on demand, showing how ingredients moved through the supply chain. This clear traceability builds trust with regulators and maintains compliance with food safety rules.

    warehouse workers scanning boxes black and white

    Integrating EDI for Food and Drink with WMS and ERP.

    Linking Order Data Across Systems

    EDI connects business software with warehouse management systems in food and beverage for smooth information flow. Orders entering through EDI update inventory in your ERP (like SAP Business One) while creating picking tasks in your WMS (like Infios, formerly Körber).

    A complete supply chain technology setup includes these key parts:

    This integration ensures everyone sees the same information. Accounting knows what sales promised, warehouse staff know what needs shipping, and purchasing knows when to reorder. No departments working separately with different data.

    Automating Warehouse Tasks from EDI Messages

    Warehouse actions begin automatically when EDI messages arrive. An incoming order creates picking instructions for staff or directs robots to retrieve items.

    This food warehouse automation shortens processing time. Orders received in the morning can ship the same day because there’s no waiting for someone to manually create warehouse instructions. Tasks happen in the correct order without constant supervision.

    “When EDI is running smoothly, it automatically triggers tasks like picking, packing, and invoicing without manual intervention. Warehouse teams notice fewer errors, quicker order processing, and more reliable delivery timelines.”

    – Edward Napier-Fenning, Sales and Business Strategy Director at Balloon One

    warehouse workers at back of lorry in warehouse black and white

    Automating ASNs (Advanced Shipping Notices).

    EDI sends shipping details ahead of delivery trucks. The DESADV transaction (dispatch advice) tells receivers exactly what’s coming, when it arrives, and how it’s packaged.

    Warehouse teams use this advance notice to prepare unloading space and assign staff. They know what products and quantities to expect, so they prepare the right equipment and storage areas.

    This preparation reduces unloading time. Drivers wait less, dock space opens up quicker for the next delivery, and products move to storage areas without confusion.

    Retailers require ASNs in their supplier agreements. Meeting these expectations helps avoid late fees and keeps trading relationships strong.

    EDI Requirements for Food and Drink Retail and Export.

    Supporting GS1, EDIFACT, and XML Formats

    Major UK retailers require specific EDI formats from all suppliers. GS1 standards provide product identification, while EDIFACT remains the common format for many grocery chains.

    EDI Format Primary Use
    EDIFACT Traditional European standard used by many retailers
    GS1 XML GS1 XML Modern standard for product identification and data
    AS2 Secure transmission protocol for EDI documents
    XML Flexible format increasingly used in modern systems

    Food suppliers need to know these standard EDI transactions:

    • ORDERS – Purchase orders from buyers
    • DESADV – Shipping notices before delivery
    • INVOIC – Electronic billing after delivery
    • RECADV – Receipt confirmation

    Companies that ignore these formats face rejected orders and penalties. Each rejected order results in unhappy customers and lost sales. By using all standard formats, food suppliers keep their products moving to store shelves.

    Automating Export Documentation

    Export paperwork becomes easier and more accurate with EDI. Customs forms, origin certificates, and shipping lists generate automatically from order data.

    This automation speeds up international shipments. Products cross borders faster because paperwork errors almost disappear. For perishable goods, this speed can determine whether products arrive fresh or spoiled.

    warehouse worker on computer automating processes black and white

    How Balloon One Can Help.

    At Balloon One, we connect your technology systems so that information flows automatically. Our team links your WMS, ERP, and EDI into one smooth operation where data moves between systems without manual steps.

    As the exclusive UK partner of Infios (formerly Körber), we provide warehouse management solutions designed for food and drink operations. Brands like Huel, Classic Fine Foods, Birchall Foodservice, and Virgin Wines are only some of our clients. Our experts map your document formats and help connect your trading partners to EDI.

    Every food business has unique needs, which is why we customise solutions to match your processes. From setup through training and support, we guide you through each automation step.

    For advice on improving your food and drink supply chain, contact one of our advisors at +44 (0)20 8819 9071 or send us an email to info@balloonone.com.

    Download our free guide now.

    food and drink distribution best practices whitepaper

    Frequently Asked Questions (FAQ's)

    EDI in the food industry exchanges business documents like orders, invoices, and shipping notices between trading partners electronically. It replaces paper, email, and fax with standard formats that computers process automatically.

    EDI matters because it speeds up processing, reduces errors, supports food safety through better traceability, and meets retailer requirements. Food businesses with tight margins and short shelf lives benefit from the speed and accuracy EDI provides.

    Companies use EDI to send and receive orders, confirm shipments, create invoices, and track products. They connect EDI to their main business systems like ERP and WMS so information flows automatically between departments and trading partners.

    EDI feed has no specific meaning as a phrase. “EDI” means Electronic Data Interchange, while “feed” refers to data flow between systems. Together, they describe the stream of digital documents moving between food businesses.

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