Do distributors like UNFI require EDI?

Yes. Major distributors like UNFI and KeHE heavily prefer or mandate EDI for their suppliers. It is the only way they can efficiently process thousands of orders per day.

How much does EDI cost?

Pricing varies wildly. You typically pay an implementation fee to set up the connection with each specific retailer (often $1,000 to $3,000 per retailer), plus a monthly subscription fee or a per-document transaction fee.

Can I do EDI manually through a web portal?

Yes. Most EDI providers offer a 'Web EDI' option where you log into their website to manually read POs and type out ASNs and invoices. This is a cheap way to start, but it requires massive manual labor and is highly prone to typos. You should integrate EDI with your operations software as soon as possible.

EDI Compliance for CPG Brands: A Beginner's Guide

When you finally land that massive PO from Whole Foods or Target, the celebration usually lasts until the buyer sends you their "Vendor Routing Guide." Buried in that 100-page PDF is a strict requirement: you must be EDI compliant. If you don't know what EDI is, you are about to enter a crash course in retail logistics.

What is EDI?

Electronic Data Interchange (EDI) is a standardized way for computer systems to talk to each other. Instead of a buyer emailing you a PDF purchase order, their ERP system sends a standardized data file directly to your system. It eliminates manual data entry and speeds up the supply chain.

The "Big Three" EDI Documents

There are dozens of EDI document types, but CPG brands launching in retail really only need to understand three:

1. EDI 850 (Purchase Order)

This is the inbound order from the retailer. It contains the items they want, the quantities, the delivery date, and the specific distribution center it needs to ship to. When you receive an 850, you must immediately send back an EDI 855 (PO Acknowledgement) confirming you accept the order.

2. EDI 856 (Advance Shipping Notice / ASN)

This is the most critical and complex document. When your 3PL loads the pallet onto the truck, you must send an 856 to the retailer. It tells them exactly what is on the truck, how the pallets are configured, and the lot codes/expiration dates of the product. The 856 must be tied to physical SSCC-18 barcode labels applied to the pallets. If the physical label doesn't match the 856 data, the retailer will reject the shipment.

3. EDI 810 (Invoice)

Once the product ships, you send the 810 to demand payment. Because it is electronic, the retailer's system automatically matches the 810 against the 850 (what they ordered) and the 856 (what you shipped). If everything matches, the invoice is approved for payment.

How to Implement EDI

You do not build an EDI system yourself. You use a Value-Added Network (VAN) or an EDI provider like SPS Commerce, TrueCommerce, or Crstl. These providers translate the retailer's raw EDI data into a readable format.

However, the EDI provider is just a translator. You still need an operations platform (like Guidance) to actually fulfill the order. The ideal setup is an integration where the EDI 850 flows automatically into your operations software as a Sales Order, and when your 3PL ships it, your software automatically triggers the EDI provider to send the 856 and 810 back to the retailer.

The Cost of Non-Compliance

Retailers enforce EDI compliance through chargebacks. If you send an ASN late, or if the barcode label is unreadable, they will deduct a percentage of the invoice value. For a growing brand, these compliance fines can easily wipe out the entire profit margin of a retail launch.