If you’re a Salesforce user without integrated systems, you might be facing several challenges. These include manual data entry, a lack of real-time updates, inconsistent communication with trading partners, and higher operational costs.
These issues can be solved with Salesforce EDI integration. You can automate document exchanges, reduce errors, get real-time updates, and streamline your sales and order management processes, making your operations much more efficient and better aligned with your trading partner’s expectations.
How To Connect Salesforce With EDI
Salesforce doesn’t have EDI (Electronic Data Interchange) capability built in, so a native integration is off the table. That leaves us with two main options: custom API integration and a middleware platform. Let’s break these down.
1. Custom API Integration
Here, you’re developing a custom API between your Salesforce system and your partner’s system. This means automating electronic data interchange through code that your developers create from scratch. It requires strong technical expertise, and your team mostly does it in-house.
While it offers full customization (which is great if you want the integration tailored specifically to your business needs), it also comes with challenges. If your dedicated team of developers isn’t highly skilled in API development, you could face roadblocks, plus it’s quite resource-intensive. But for businesses that need a completely unique solution, this method gives you total control over the integration.
2. Middleware Integration
Here, you hand over the heavy lifting to a third-party EDI service provider. Middleware platforms are EDI-compliant and can easily connect Salesforce with your partner’s system. These platforms act as a bridge, managing the data transformation, mapping, and transmission of EDI messages between the trading partners.
They essentially translate your Salesforce data into EDI formats like X12 or EDIFACT, and vice versa, ensuring smooth and accurate communication between the different systems. This is much simpler for organizations that don’t want to deal with the complexities of custom development and prefer a faster, less technical solution.
Also read: EDI Transactions & EDI Integration: A Step-by-Step Manual for Seamless Operations
How EDI Integration With Salesforce Works
In Salesforce EDI integration, the system typically integrates with external trading partners’ software, like ERP (Enterprise Resource Planning) or WMS (Warehouse Management Systems). Let’s break it down clearly using an example of Partner A (who uses Salesforce) and Partner B (who uses an ERP) to understand how the data flows between systems and why.
Scenario: Partner A (Distributor) uses Salesforce, Partner B (Manufacturer) uses ERP
1. Partner A (Distributor) Places An Order In Salesforce
- Who does what: Partner A (Distributor) enters a sales order into Salesforce.
- Document type: EDI 850 (Purchase Order).
- Who sends the document to whom: The EDI integration tool translates the sales order into an EDI 850 format and automatically sends it to Partner B (Manufacturer)’s ERP system.
- Why: To inform the manufacturer about the distributor’s order, so the manufacturer can process and fulfill it.
2. Partner B (Manufacturer) Acknowledges The Order
- Who does what: Partner B (Manufacturer) reviews the order in their ERP.
- Document type: EDI 855 (Order Acknowledgment).
- Who sends the document to whom: Partner B’s ERP system sends an EDI 855 back to Salesforce, acknowledging that the order has been received and is being processed.
- Why: To keep Partner A updated on the status of the order and confirm that it’s being processed.
3. Partner B Ships The Order
- Who does what: Once the order is ready, Partner B ships the products.
- Document type: EDI 856 (Advance Shipping Notice).
- Who sends the document to whom: Partner B’s ERP generates an EDI 856, which is sent to Partner A’s Salesforce system.
- Why: To notify Partner A that the shipment is on its way, including EDI shipping details like tracking numbers and expected delivery dates.
4. Partner B Invoices Partner A
- Who does what: After shipping, Partner B issues an invoice for the products.
- Document type: EDI 810 (Invoice).
- Who sends the document to whom: The EDI 810 is sent from Partner B’s ERP to Partner A’s Salesforce, where the sales team can track the invoice.
- Why: To request payment from Partner A for the products delivered.
Common EDI Transaction Sets For Salesforce
Here are some common EDI transaction sets used with Salesforce:
- EDI 850 – Purchase Order: Used to send purchase orders from Salesforce (typically used by distributors) to a supplier’s ERP system. This initiates the order process and specifies products, quantities, and prices.
- EDI 810 – Invoice: Used to send invoices from the supplier’s system to Salesforce, detailing the products or services provided, pricing, and payment terms.
- EDI 856 – Advanced Shipping Notice (ASN): Sent by the supplier to notify the Salesforce user of the shipment details, such as tracking numbers, packaging information, and estimated delivery times.
- EDI 855 – Purchase Order Acknowledgement: Used by the supplier to confirm receipt and acceptance of the purchase order sent from Salesforce. This helps in keeping track of order statuses.
- EDI 940 – Warehouse Shipping Order: Used to instruct warehouses to ship products. This can be integrated with Salesforce for businesses managing logistics and warehouse operations.
- EDI 945 – Warehouse Shipping Advice: Sent by the warehouse to confirm that goods have been shipped. This is useful for Salesforce users who rely on third-party logistics for fulfillment.
- EDI 832 – Price/Sales Catalog: Used by suppliers to send updated product information and pricing to Salesforce, helping keep the system updated with the latest product details.
- EDI 997 – Functional Acknowledgment: A standard response sent to confirm the receipt of an EDI transaction, ensuring proper data transmission between systems.
These EDI transaction sets streamline the data exchange between Salesforce and trading partners, enabling automation in processes like order management, invoicing, and shipping.
Also read: Understanding EDI Shipping Integration [Methods + Process]
Why Should You Consider Salesforce EDI Integration
As a distributor or manufacturer, you likely deal with many B2B trading partners. But what happens when a customer requests EDI transactions, and you’re not EDI compliant? You might reject them once or twice, but can you keep saying no? Especially in this age, where everything is online and automated.
Many of your trading partners are already EDI compliant, exchanging documents seamlessly with little human intervention. Eventually, you’ll need to adopt EDI to get that competitive advantage, so why not start now? It’ll help you retain customers and strengthen your relationships with partners.
Here are a few other benefits of Salesforce EDI Integration:
Streamlined Sales And Order Management
Your Salesforce system manages customer relationships, tracking quotes and orders. Integrating EDI allows seamless data transfer to external trading partners (e.g., suppliers, customers, distributors), automating processes like order processing, acknowledgments, shipping notifications, and invoicing. Without EDI, these tasks often require manual input, leading to errors and delays.
Improved Accuracy And Data Consistency
When Salesforce and EDI are integrated, data like orders, invoices, and customer information are automatically transferred between systems. This reduces the risk of errors from manual data entry, improving accuracy and consistency across the board.
Real-Time Updates
Seamless integration provides real-time updates on orders, shipments, and inventory within Salesforce, keeping your sales team informed. This ensures they always have accurate stock availability, order status, and shipping information when communicating with customers.
Faster Order Fulfillment
Automating the exchange of purchase orders, shipping notices, and invoices between Salesforce and EDI speeds up order fulfillment. This reduces bottlenecks from manual processes, ensuring quicker processing, shipping, and billing.
Enhanced Customer Experience
Salesforce EDI integration improves the customer experience. The sales team can quickly respond to inquiries, confirm orders, provide real-time shipping updates, and send invoices without delay, ensuring a smooth and transparent process for customers.
Automation Of Routine Tasks
Routine tasks such as order confirmations, shipment tracking, and payment processing can be automated through Salesforce EDI integration. This allows employees to focus on more strategic tasks, like building customer relationships and driving sales growth.
Also read: Shopify EDI Integration: Process, Challenges, and Best Practices
Common Salesforce EDI Integration Scenarios
1. Salesforce CRM Integrated With EDI And Transferring Documents To Partner’s ERP System
In this scenario, a distributor or sales team uses Salesforce CRM to interact with their trading partner’s ERP system via EDI to manage orders, inventory, and invoicing.
Process: The distributor creates a sales order in Salesforce CRM, which is automatically converted into an EDI 850 (Purchase Order). This document is sent to the vendor’s ERP system for processing. The partner acknowledges the order with an EDI 855 (Order Acknowledgment). When the order is shipped, the partner sends an EDI 856 (Advance Shipping Notice) to Salesforce, along with an EDI 810 (Invoice) to manage billing. Salesforce CRM users can track orders, shipments, and payments all within their CRM (customer relationship management).
Why this happens: This setup streamlines the communication between the distributor and the partner by automating the flow of documents, reducing manual work, and improving order accuracy and efficiency.
2. Salesforce CRM Transferring Documents To Partner’s CRM System Via EDI
Here, both the distributor and the supplier are using CRM systems but rely on EDI to standardize and automate communication.
Process: A sales order is generated in the distributor’s Salesforce CRM, which is then converted into an EDI 850 (Purchase Order). This document is transmitted via EDI to the business partner’s CRM system, where it is processed. The vendor sends an EDI 855 (Order Acknowledgment) to confirm the order, followed by an EDI 856 (Advance Shipping Notice) when the shipment is dispatched. Finally, the vendor sends an EDI 810 (Invoice) for billing purposes.
Why this happens: EDI acts as the bridge between both CRM systems, ensuring that data is transferred in a standardized format. This process allows both parties to continue using their respective CRM systems while automating key operations.
3. Salesforce Commerce Cloud Integrated With EDI, Sending Documents To Supplier’s ERP System
This scenario involves a business owner who operates an online store on Salesforce Commerce Cloud. The business uses EDI to interact with its vendor (supplier) to manage inventory restocking and order fulfillment.
Process: The store owner notices low inventory and uses the Salesforce Commerce Cloud platform to initiate an inventory replenishment order. This order is automatically converted into an EDI 850 (Purchase Order) and sent to the vendor’s ERP system for processing. The vendor acknowledges the order with an EDI 855 (Order Acknowledgment) and then sends an EDI 856 (Advance Shipping Notice) once the items are shipped to the store owner. Upon delivery, the vendor sends an EDI 810 (Invoice) to the Commerce Cloud system, allowing the store owner to process payment.
Why this happens: EDI automates the B2B (business-to-business) communication between the store owner and the vendor, simplifying the process of restocking inventory and handling procurement efficiently. The key interaction here is between the business owner and the supplier, with no customer involved in the EDI process itself.
Connect Your Salesforce With EDI Using DCKAP Integrator
DCKAP Integrator is a powerful EDI integration solution, built to meet the specific needs of manufacturers and distributors. If you need to connect your existing EDI system with your ERP, we can seamlessly integrate that for you. And if you don’t have an EDI solution yet, DCKAP Integrator can serve as both your EDI system and your integration tool.
Integration is our specialty but we can also take care of all the mapping and translation for you. Give it a try! Check out our demo and get in touch with our experts for more details.
FAQs
Why should I choose an EDI provider?
Choosing the right EDI provider ensures a hassle-free experience when managing business data exchanges. A good EDI provider offers comprehensive EDI support, giving you the flexibility to connect your systems to multiple partners, platforms, and applications. Their integration hub allows for seamless connections between your ERP, CRM, or other business systems, providing end-to-end data flow.
An experienced provider also brings valuable technical resources and support to guide you through any conditions or challenges that arise. With strong EDI providers, you get an efficient connection that enhances your operational efficiency while aligning with your business values.
What are some common EDI use cases for Salesforce?
Salesforce EDI integration is an essential part of a company’s innovation strategy because it automates the entire order lifecycle. It leverages the world’s data, AI-powered insights, and AI certifications to optimize supply chain processes and improve overall operational efficiency.
Typical EDI use cases include end-to-end order processing, inventory management, and invoice generation. It’s popular in industries like consumer goods and distribution where timely and accurate data exchange is critical for business operations.
How does Salesforce EDI integration improve customer service and satisfaction for B2B orders?
Salesforce EDI integration enhances customer satisfaction by providing real-time visibility into order statuses, shipment tracking, and item details. This seamless data exchange helps ensure orders are processed and fulfilled efficiently, offering a superior experience to B2B customers. By automating these processes, businesses can focus more on customer service and less on manual order management, thus driving customer satisfaction and loyalty.
How does EDI integration with Salesforce Order Management System simplify the lifecycle of orders?
EDI integration with Salesforce OMS simplifies the lifecycle of orders by automating the processing of B2B orders, including purchase orders, shipping notices, and invoicing. Companies gain relief from manual tasks, allowing orders to flow through the system on a real-time basis, ensuring accuracy and timely fulfillment. This automation is particularly useful for managing high volumes of transactions, especially in consumer goods industries.
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