Why EDI Matters in the Apparel Industry

Electronic Data Interchange (EDI) is how retailers and manufacturers electronically exchange business documents like purchase orders, shipping notices, and invoices. For fashion brands, it’s a non-negotiable requirement when working with major retailers like Nordstrom, Macy’s, or Bloomingdale’s.

Retailers send purchase orders (EDI 850) specifying product quantities, colors, sizes, and shipping instructions. Manufacturers reply with Advanced Shipping Notices (EDI 856), invoices (EDI 810), and acknowledgments (EDI 997). These fast, accurate exchanges make you a trusted trading partner—but only if everything is done right.

Understanding EDI Basic Documents

These are the basic EDI documents exchanged between your fashion brand and retailer. Each EDI document also has its own transaction code:

• 850 – Purchase Order
• 856 – Advanced Shipping Notice (ASN)
• 810 – Invoice
• 997 – Functional Acknowledgment

These codes ensure consistent and error-free communication between systems.

How Apparel Software Like AIMS360 Simplifies EDI

Rather than entering data manually into multiple systems, AIMS360 apparel software integrates EDI directly into your ERP workflow—automating everything from receiving POs to sending ASNs and invoices.

Here’s how the process works:

• 850 PO → Instantly creates a sales order inside AIMS360
• Shipment data → Triggers an 856 ASN, formatted and sent automatically
• Invoicing → EDI 810 generated from the shipped order data
• Acknowledgment (997) → Sent for every received document

This seamless flow reduces errors, speeds up processing, and strengthens compliance.

EDI Mapping: Why It Matters

Retailers often have unique data formats and EDI requirements. That’s where EDI mapping plays a key role. AIMS360 apparel software includes built-in mapping features with two key functions:

1. Communication Module – Connects your system to the EDI network
2. Bridge/Mapping Software – Translates retailer-specific EDI formats into a standard format your system can process

Each trading partner gets a dedicated “map,” ensuring accurate, retailer-compliant communication.

Avoiding EDI Chargebacks with Apparel Software

Chargebacks happen when EDI data doesn’t match retailer requirements—late ASNs, incorrect packing labels, missing PO numbers, or misrouted shipments. These mistakes can lead to costly penalties and strained partnerships.

AIMS360 helps prevent chargebacks by:

• Validating data between POs, shipments, and invoices
• Flagging missing or incorrect EDI documents in real time
• Automatically sending acknowledgments (997s) to confirm delivery
• Reconciling chargebacks and factor deductions with an integrated system

By using purpose-built apparel software with EDI automation, brands stay compliant, responsive, and profitable.

How to Stay EDI Compliant with Major Retailers

Staying compliant with big-box retailers like Burlington, Saks, Nordstroms, etc requires more than just software—it requires knowledge and visibility. Here’s how to do it:

• Know Each Trading Partner’s Rules: Retailers provide routing and vendor compliance guides. Requirements may change, so stay updated.
• Track Every Document: AIMS360 allows full visibility into EDI orders, ASNs, and invoices.
• Address Issues Quickly: If a chargeback happens, use AIMS360 to investigate and fix the root cause.

AIMS360 apparel software full retailer list

FAQs: Apparel EDI & ERP Integration

What is EDI in apparel?

EDI (Electronic Data Interchange) is the automated exchange of purchase orders, invoices, and shipping documents between fashion brands and retailers. Retailers want all transactions to happen electronically so that they don't have to deal with physical paperwork like invoices.

What is an automated EDI 856?

A standardized Advanced Shipping Notice (ASN) format used in retail. It details what is being shipped, how, and when. AIMS360 apparel software automates EDI 856 transactions to reduce manual work.

Can AIMS360 apparel software integrate with SPS Commerce, DiCentral, or CommerceHub?

Yes. AIMS360 apparel software offers built-in EDI functionality and can also integrate with major third-party providers like SPS Commerce, DiCentral, OpenText, and CommerceHub—giving you flexibility based on your retailer requirements.

Why is AIMS360’s in-house EDI integration better than using third-party middleware?

Because it’s built into the AIMS360 apparel software, our EDI integration offers faster support, real-time syncing, and fewer points of failure. If a document is incorrect or delayed, we can resolve it quickly—helping you avoid chargebacks caused by system disconnects or slow third-party responses.

How can I reduce EDI chargebacks?

Automate compliance with an integrated EDI system. AIMS360 validates data, tracks documents, and reconciles chargebacks—all in one platform. Plus, our implementation team are EDI experts who have worked in the apparel industry and understand retailer requirements firsthand. They’ll help you configure and optimize your setup from the start.

Is EDI integration worth it for small apparel businesses?

Yes. Even small fashion brands need EDI to work with major retailers. AIMS360 is affordable apparel software for businesses of all sizes, helping you save time, avoid errors, and meet compliance standards without hiring extra staff.

Does AIMS360 apparel software support QuickBooks, SAGE, or NetSuite accounting systems?

Yes. AIMS360 apparel software integrates with popular accounting platforms to give you seamless financial and operational visibility across your business. Your EDI invoices will be posted in your accounting system from AIMS360

What is a UPC, where do I get one, and how do I assign it?

A Universal Product Code (UPC) is an 11-digit barcode that uniquely identifies each style, color, and size of your product. You can purchase UPCs through GS1 (formerly GXS). AIMS360 apparel software makes UPC management simple with auto-assignment features that ensure no duplicates and complete compliance with retail partners.

How do I get a compliant hangtag for garments sold to major department stores requiring EDI?

You’ll need a hangtag that includes a valid UPC barcode and any retailer-specific data (e.g., PO number, department code, store location). Retailers provide these requirements in their routing guides. AIMS360 apparel software helps generate compliant hangtags by pulling data directly from your EDI and product information, reducing labeling mistakes and compliance issues. Print your own in-house hangtag printing or use our partner printing services like Progressive Label and Fineline.

If I have AIMS360 apparel software, can I confidently tell a retailer I can do EDI in 30 days?

Yes, you can. AIMS360 apparel software includes an expedited EDI testing and compliance process designed to get you up and running quickly with major retailers. Our in-house team works closely with you to ensure maps are built, tested, and approved—so you can confidently commit to EDI compliance within 30 days or less.

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Ready to Stop EDI Headaches Before They Cost You?

AIMS360 is the only apparel software with fully integrated EDI and chargeback prevention tools built specifically for fashion brands. Whether you’re shipping 10 units or 10,000, we help you stay compliant, avoid penalties, and grow faster.

Contact us now for a free apparel software demo and see how AIMS360 can streamline your EDI process from start to finish.

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