1. What Is EDI (Electronic Data Interchange)?

Electronic Data Interchange (EDI) is a standardized digital system for exchanging business documents — like purchase orders, invoices, and shipping notices — between companies.

Instead of emailing spreadsheets or manually entering data, your ERP and your retailer’s system “talk” directly using EDI standards.

For example, when a retailer like Nordstrom places a purchase order, EDI transmits that order straight into your ERP, ready for fulfillment. No manual typing, no missing information.

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2. Why EDI Matters in the Apparel Industry

In fashion, speed, accuracy, and compliance are critical. Retailers require exact data formats, and small errors can lead to delays or chargebacks.

EDI ensures that your data — from orders to shipments — moves automatically and securely between your business and your retail partners.

Key benefits include:

• Speed: Orders and invoices move instantly, not days later.
• Accuracy: No manual data entry errors.
• Compliance: Meets each retailer’s trading rules automatically.
• Scalability: Handles hundreds of retailers, styles, and SKUs without needing extra staff.

3. Common EDI Transaction Codes

Fashion retailers use specific EDI document “codes” to communicate:

• 850 – Purchase Order: The retailer’s order sent to your brand.
• 855 – Purchase Order Acknowledgment: Your confirmation that you received and accepted the PO.
• 856 – Advance Ship Notice (ASN): Shipment details like cartons, styles, sizes, and tracking numbers.
• 810 – Invoice: Sent automatically when goods ship.
• 846 – Inventory Advice: Tells retailers what stock is available (especially for dropship).

Each transaction keeps your retailer and ERP perfectly in sync.

4. How Apparel ERP Systems Simplify EDI

Without automation, EDI can be complex — involving file transfers, mapping, and portals.

AIMS360 EDI software removes this complexity by fully integrating EDI workflows inside your ERP.

That means:

• Orders from retailers (EDI 850) automatically import into AIMS360.
• You confirm or reject orders with a single click (EDI 855).
• Shipments and tracking numbers automatically generate ASNs (EDI 856).
• Invoices (EDI 810) send out as soon as goods are shipped.
• Everything syncs with QuickBooks, eliminating double entry.

The result: hours saved each week and zero missed retailer requirements.

5. Bulk Retailer Orders Explained

Bulk orders are when retailers buy large quantities upfront — often to stock physical stores or warehouses. These are usually shipped in cartons or pallets, not individual pieces.

For example, Macy’s might send you an EDI 850 for 1,000 units of a style in multiple colors and sizes.

AIMS360 EDI software for bulk orders:

• Imports POs automatically into your ERP.
• Reserves inventory by color and size grid.
• Creates picking tickets and packing slips in compliance with retailer carton labeling.
• Generates the EDI 856 (ASN) and 810 (Invoice) automatically after shipping.

This end-to-end process eliminates manual file uploads and ensures your shipments match retailer compliance — avoiding costly chargebacks.

6. Dropship Retailer Orders Explained

Dropship orders are single-customer orders sent directly from your warehouse to the consumer, on behalf of the retailer.

For example, when a shopper buys your product on Bloomingdale’s.com or Amazon, that order routes to you via EDI.

AIMS360 EDI software for dropship orders:

• Automatically imports each customer order from the retailer.
• Generates a shipping label with the retailer’s branding.
• Sends tracking information back to the retailer via EDI 856.
• Posts an automated invoice (EDI 810) once shipped.

This automation allows you to fulfill hundreds or thousands of daily dropship orders across channels without extra staff — all fully compliant with each retailer’s requirements.

7. Steps to Get Started with EDI

1. Choose the Right ERP + EDI Platform: Use a solution built for fashion workflows, like AIMS360.
2. Connect Retailers: Set up trading partnerships with retailers such as Nordstrom, Saks, or Amazon.
3. Test Each Transaction Type: Validate all document types (850, 855, 856, 810, 846).
4. Automate Your Process: Let the ERP handle imports, acknowledgments, shipping, and invoicing.
5. Monitor Activity: Review dashboards for errors or exceptions to maintain perfect compliance.

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8. The ROI of EDI Integration

Implementing EDI through AIMS360 delivers measurable ROI:

• Save 10–20 hours per week in manual data entry.
• Reduce chargebacks by eliminating errors.
• Accelerate invoicing and improve cash flow.
• Scale your business to more retailers and channels without increasing headcount.

9. Final Thoughts

Whether your fashion brand handles large bulk retailer orders or fast-moving dropship eCommerce, AIMS360 EDI software ensures accuracy, compliance, and automation across your entire supply chain.

With AIMS360, you can focus on growing sales and partnerships — not managing data files.

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