.png)
That nationwide fashion retailer you’ve been dreaming of working with finally noticed your brand—but before you can seal the deal, they ask you to implement EDI (Electronic Data Interchange). If this request brought you here, you’re not alone. Most major retailers—like Burlington, TJX, Nordstrom, Bloomingdale’s, Macy’s, Target, JCPenney, Amazon, and others—now require EDI integration as part of their vendor onboarding process.
Why You Need EDI
Major retailers can’t afford to process thousands of orders, invoices, and shipping notices manually. If a brand emails a PDF invoice, a retail employee must open the email, download the PDF, and manually type the invoice number, date, items, prices, and totals into their system.
This takes time and introduces human error. Imagine one wrong keystroke changing a price or SKU—one mistake can cause chargebacks, delayed payments, or canceled orders.
Now compare that to EDI: when you send the same invoice as an EDI 810, the document flows directly into the major retailer’s system, mapped to the correct fields. The retailer sees the invoice instantly, without touching a keyboard. No retyping, no errors, and payments are processed automatically.
The same principle applies to EDI 850 POs, EDI 856 ASNs, and EDI 820 payment advice. With EDI, information just pops up inside the major retailer’s system—ready for action.
What Is EDI?
EDI is the standardized method of exchanging business documents electronically in formats like ANSI X12 or EDIFACT. It replaces emails, faxes, or paper documents with computer-to-computer communication.
For fashion brands, this means purchase orders, invoices, ASNs, and catalogs move seamlessly to and from retail partners—reducing errors, delays, and chargebacks.
How Does EDI Work?
- Retailer sends an EDI 850 PO.
- It’s converted into a standard format (ANSI X12/EDIFACT).
- Transmitted securely via AS2, FTP, or a VAN.
- Retailer’s system receives and processes the file automatically.
- An acknowledgment (EDI 997) confirms receipt.
This automation accelerates transactions, reduces labor, and minimizes costly errors.
How Does EDI Work with My Warehouse?
When retailers send you an EDI 850, the order must flow through production and fulfillment—whether you run in-house warehouses, 3PLs, or both.
- Retailer Sends Order
- The EDI 850 arrives in AIMS360.
- Production Routing with AI Allocation
- If production is required, AIMS360 automatically routes the order into production or connects it to an existing work order using AI allocation—ensuring fabric, trims, and capacity are matched intelligently.
- Warehouse / 3PL Routing
- Once production is complete or stock is ready, AIMS360 uses AI allocation to route the order to the correct in-house warehouse or 3PL.
- In-House Warehouse
- AIMS360 pushes orders to your warehouse team for picking and packing. As cartons are scanned, the system generates EDI 856 ASNs and UCC-128 labels automatically.
- Third-Party Logistics (3PLs)
- For 3PLs, AIMS360 transmits order data directly. The 3PL confirms back what was shipped, and AIMS360 issues outbound EDI 856 ASNs and EDI 810 invoices.
- Multiple Warehouses / 3PLsMany brands split inventory across multiple sites. AIMS360:
- Splits orders across fulfillment points
- Generates separate ASNs and labels per location
- Consolidates all back into ERP for perfect visibility
Process Flow: Retailer order → AIMS360 checks production → allocates inventory → routes to warehouse or 3PL → generates ASN + invoice → retailer gets data instantly.
EDI Dropship vs. EDI Bulk
Major retailers often run two distinct EDI programs—bulk and dropship.
- Bulk: Retailers issue EDI 850 POs for shipments to DCs. Vendors ship pallets/cartons, then retailer distributes.
- Examples: Nordstrom, Kohl’s, Burlington.
- Dropship: Retailers forward customer orders to be shipped DTC with branded slips and tracking.
AIMS360 handles both seamlessly, with automated labels, ASNs, and compliance.
How EDI Helps Apparel Brands Grow
- Speed & Accuracy – Automates orders, invoices, and shipments.
- Inventory Visibility – Keeps stock synced across ERP, 3PLs, and e-commerce.
- Compliance – Prevents routing guide errors and chargebacks.
- Scalability – Onboard new top EDI retailers fast.
Why Fashion Brands Need an Integrated ERP and EDI System
With AIMS360’s built-in apparel EDI system, brands avoid third-party middleware and manage everything in one place—inventory, production, fulfillment, and EDI.
What Is AIMS360 Apparel ERP Software with EDI?
AIMS360 is a cloud-native ERP for fashion that unifies ERP + EDI. It supports bulk and dropship, handles EDI Jewelry, integrates with partners like SPS Commerce, DiCentral, OpenText, CommerceHub, and connects with catalog networks like GXS and Intertrade.
Why Cloud-Based EDI Is Best for Fashion Brands
Unlike old systems, you don’t need an IT department. Everything runs in the cloud, fully managed. AIMS360 is PCI compliant and equipped with active firewalls to block threats—giving you enterprise-level reliability with zero IT overhead.
The Risk of Third-Party EDI
Middleware creates extra costs and risk of failed transmissions. AIMS360’s all-in-one ERP + EDI keeps everything under one roof, with full accountability.
How to Have Integrated Accounting for Your EDI
AIMS360 integrates with QuickBooks, Sage, and NetSuite. This ensures Accounting stays in sync with EDI invoices, payments, and credits—including automatic reconciliation of chargebacks subtracted from retailer payments.
Why AIMS360 is the Best EDI Software for 2026
Complete ERP + EDI, retailer maps, full support for EDI 850, 855, 856, 810, 820, 832, 864, 997, and compliance with UCC-128 / GS1-128 labels.
EDI Routing Guides in Fashion
What is a EDI routing guide? It’s the retailer’s compliance rulebook—labels, ASN timing, VICS BOL, documents, and penalties. AIMS360 embeds routing-guide rules into workflows, preventing errors and chargebacks.
Why Inventory Management Is Critical to Prevent EDI Chargebacks
Chargebacks often come from ASN vs. shipment mismatches. AIMS360 prevents them with AI-driven allocations, ASN validation, and auto-generated compliant labels.
EDI Consultants and the AIMS360 Implementation Team
Our EDI implementation staff has worked with Nordstrom, Saks, Macy’s, Kohl’s, Burlington, Target, Walmart, JCPenney, TJX, Ross, Dillard’s, Neiman Marcus, and more.
Our 9-step process:
- Read routing guides
- Determine required EDI documents
- Confirm retailer maps
- Run test cycles with retailer’s EDI dept
- Train your team on retailer-specific workflows
- Verify labels & compliance setup
- Coordinate go-live date & monitor first orders
- Ongoing support available anytime
- Emergency support 24×7 so you never miss an EDI 856 ASN or EDI 810 invoice deadline
EDI Consultants & Software Training
AIMS360 provides EDI software training tailored to apparel. From EDI 850 to EDI 997, your staff learns both common workflows and retailer-specific nuances.
EDI FAQ
Q1: What is EDI in fashion?
EDI (Electronic Data Interchange) is the electronic exchange of documents—such as purchase orders, invoices, and shipping notices—between fashion brands and major retailers. It replaces paper, email, or PDF workflows with automated, system-to-system communication, ensuring accuracy and compliance.
Q2: Which EDI documents do fashion brands need most?
The most common documents are EDI 850 (Purchase Order), EDI 855 (Purchase Order Acknowledgment), EDI 856(Advance Shipping Notice), EDI 810 (Invoice), EDI 820 (Payment Advice), EDI 832 (Catalog), EDI 864 (Text Message), and EDI 997 (Functional Acknowledgment).
Q3: What are the benefits of ERP + EDI integration?
Integrating ERP with EDI eliminates manual data entry, prevents errors, and ensures invoices, ASNs, and payments flow directly between your ERP and retailer systems. It saves time, reduces chargebacks, and gives you real-time visibility into orders, inventory, and shipments.
Q4: What EDI standards or platforms are common in retail?
Most retailers use ANSI X12 or EDIFACT standards. Files are transmitted via AS2, FTP, or VANs. Common platforms include CommerceHub, SPS Commerce, DiCentral, OpenText, and Roundhouse EDI.
Q5: How does EDI help with retailer compliance?
EDI ensures compliance with routing guides by:
- Generating UCC-128 / GS1-128 labels and VICS BOLs
- Meeting ASN timing rules
- Validating orders and shipments
- Eliminating mismatched data that lead to chargebacks
Q6: How does EDI work with warehouses and 3PLs?
AIMS360 routes orders using AI allocation. If production is needed, it automatically creates or links to work orders. Once inventory is ready, it routes shipments to your in-house warehouse(s) or 3PL(s). The warehouse scans cartons, generates EDI 856 ASNs and labels, and AIMS360 issues EDI 810 invoices. Works seamlessly whether you have one or multiple warehouses and 3PLs.
Q7: What is the difference between EDI dropship and EDI bulk?
- EDI Bulk: Retailers send EDI 850 POs for large shipments to distribution centers. Vendors ship pallets or cartons, and retailers distribute.
- EDI Dropship: Retailers forward customer orders, and vendors ship direct-to-consumer with branded packing slips and ASNs.
- AIMS360 automates both workflows.
Q8: What is an EDI 832 catalog and why do GXS and Intertrade matter?
The EDI 832 Catalog transmits product data (styles, sizes, UPCs, prices) to retailers. Networks like GXS and Intertradeare hubs where retailers pull catalog data. AIMS360 connects directly, keeping your retail partners updated automatically.
Q9: What is an EDI routing guide?
A routing guide is a retailer’s “rulebook” for labels, packing, ASN timing, and required documents. AIMS360 embeds routing guide rules into ERP + EDI workflows so you comply with Nordstrom, Macy’s, Target, Walmart, and all major retailers without errors.
Q10: What is EDI software training?
EDI software training teaches your team how to process transactions, generate labels, and handle exceptions. With AIMS360, training is fashion-specific: your staff learns how to process EDI 850 POs, generate EDI 856 ASNs, issue EDI 810 invoices, and stay compliant with each retailer’s unique requirements.
Q11: What is the most popular EDI software?
In the apparel industry, AIMS360 apparel EDI software stands out because it combines ERP and EDI in one system. Unlike middleware that charges per transaction, AIMS360 has built-in EDI without per-transaction fees—making it the best ROI choice for fashion brands.
Q12: Is EDI expensive for smaller fashion brands?
Traditional EDI can be costly with transaction fees and third-party providers. AIMS360 solves this with all-in-one ERP + EDI pricing, no per-transaction fees, and cloud hosting—making enterprise-grade EDI affordable for small and mid-sized fashion businesses.
