EDI in food & beverage: How EDI 365 for Business Central drives efficiency

How EDI 365 for Business Central drives efficiency

In an industry built on perishability, tight margins, and rapid response times, food and beverage companies can’t afford any delay or error in communication with their trading partners. That’s where Electronic Data Interchange (EDI) becomes indispensable. EDI streamlines data exchange, eliminates manual entry, and ensures accurate and timely order processing.

Our EDI 365 app for Dynamics 365 Business Central takes this a step further by embedding EDI directly within your D365 Business Central environment. This fully automates communications with hundreds of major retailers and suppliers. This blog explores why EDI is vital in the food and beverage space, the key EDI document types used, the trading partners involved, and how our app EDI 365 delivers tangible benefits.

The impact of EDI for food & beverage

EDI (Electronic Data Interchange) is the structured, electronic exchange of business documents between organizations. It replaces paper-based or manual processes with standardized digital messages, accelerating transactions while reducing errors and operational costs.

Within the food and beverage industry, EDI is essential for:

  • Faster transaction processing—critical for perishable items where delays can mean spoilage or lost sales.
  • Error reduction—minimizing miskeyed orders or invoicing discrepancies that result in costly adjustments.
  • Improved supply chain efficiency and visibility—facilitating better inventory management and collaboration.
  • Expanded market—many large grocery stores require EDI, making EDI essential for growing food and beverage companies 
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Common EDI document types in the food & beverage sector

Here are some of the most widely used EDI transaction sets vital to food and beverage operations:

Purchase order
Purchase order acknowledgment
Advanced Shipping Notice (ASN)
Invoice
Inventory inquiry/advice
Functional acknowledgment
Industry specific
EDI code
EDI 850
EDI 855
EDI 856
EDI 810
EDI 846
EDI 997
EDI 875, 880, etc.
Purpose
Initiates an order from buyer to supplier
Confirms receipt of PO and expected fulfillment details
Notifies the buyer about impending shipment details
Provides billing for goods/shipment
Shares inventory levels for planning
Confirms message receipt and data integrity
Grocery-specific POs or invoices

These standardized documents support the smooth flow of transactions, essential when coordinating with multiple partners and channels.

Key trading partners in food & beverage EDI

Food and beverage companies typically exchange EDI documents with a diverse network of stakeholders:

  • Retailers and big-box chains: Walmart, Costco, Amazon, Target, and other grocers, often with mandatory EDI requirements.
  • Distributors and wholesalers: Connect food producers to regional outlets and food service operations.
  • Suppliers: From farms and ingredient manufacturers to packaging and logistics providers.
  • Regulatory bodies: For traceability and compliance, e.g., FDA or USDA, particularly during recalls or reporting.
  • Co-packers and co-manufacturers: Demand tight coordination via orders, shipping notices, and inventory data.
  • Internal/vertical channels: Intercompany operations managing production, warehousing, and retail outlets.

These complex networks require precise, standardized communication, making EDI not just helpful, but essential.

Introducing Rand Group’s EDI 365 for Dynamics 365 Business Central

We simplify this complexity with EDI 365, a hands-free EDI app that brings seamless automation directly into D365 Business Central.

Here’s how it stands out:

  • Full automation within Business Central: Purchase orders, invoices, and shipment data flow directly in and out of D365 Business Central, no manual data entry.
  • Wide compatibility: EDI 365 supports integration with hundreds of major trading partners like Amazon, Walmart, Costco, Kroger and more.
  • Efficiency gains: Accelerates order-to-cash cycles, reduces processing time, and improves data accuracy.
  • User support & experience: Includes a free 30-day trial, sandbox environment, onboarding support, and training.
  • Accessible pricing: Starting at $69.99 per trading partner, keeping scalability affordable.

Why EDI 365 matters for food & beverage businesses

EDI 365 delivers specific advantages tailored to the food and beverage industry:

  1. Accelerated order processing:
    EDI 365 cuts processing time by automating acknowledgments, confirmations, and updates, ensuring the freshest products reach the shelf faster.
  2. No manual data entry:
    Food and beverage companies handle high-volume transactions. EDI 365 eliminates duplication, freeing the team to work on higher-value tasks.
  3. Fewer errors, fewer returns:
    Manual entry errors lead to mis-shipments and stock issues. EDI’s automation slashes these errors, reducing credit notes and rework.
  4. Strengthened relationships with retailers:
    Most large retailers impose EDI requirements. With EDI 365, businesses ensure compliance and avoid disruptions in trading ability.
  5. Scalable and flexible:
    As your network grows, adding new trading partners is streamlined. The pay-per-partner model means you only adapt as needed.
  6. Integrated visibility:
    Since all EDI documents live inside D365 Business Central, data flows seamlessly into your ERP. This supports improved reporting, cash flow forecasting, and analytics.

Real-world scenario: Launching a perishable product

To illustrate the power of EDI 365 in action, imagine rolling out a limited-edition beverage line tied to a seasonal campaign. You must:

  1. Send bulk EDI 850 Purchase Orders to ingredient and packaging suppliers.
  2. Receive EDI 855 acknowledgments confirming quantities and delivery windows.
  3. Track EDI 856 ASNs from suppliers for precise scheduling.
  4. Generate EDI 810 invoices aligned with shipments to retailers.
  5. Monitor EDI 846 inventory advice to align your production and replenishment planning.
  6. Use EDI 997 acknowledgments to verify document integrity end-to-end.

With EDI 365, every step executes automatically, error-free, and inside D365 Business Central. Our app allows your team to focus on marketing and launch success, not admin headaches.

Partner with Rand Group for EDI success

Our expert Microsoft consultants don’t just deliver an app, we guide the entire EDI journey:

  • Requirements analysis: Understand which document types and partners matter most for your business.
  • Seamless deployments: Configure EDI 365, set up connectors, and launch in D365 Business Central quickly.
  • Trading partner onboarding: Map partner-specific EDI formats and ensure seamless transactions.
  • Training & support: Equip your team with the tools, dashboards, and knowledge to confidently manage EDI.
  • Ongoing optimization: As your business evolves, Rand helps scale and refine your EDI footprint.
Contact us

Connect with an EDI specialist

Reach out to our team today to connect with one of our expert Microsoft consultants. They can answer your EDI 365 questions and provide guidance on app installation and optimization for D365 Business Central.

Next steps

For food and beverage manufacturers and retailers EDI is not a luxury, it’s a lifeline. It ensures orders flow seamlessly, invoices are accurate, and products arrive fresh. With Rand Group’s EDI 365 for Business Central, you get a powerful, ERP-integrated solution that automates critical processes, improves accuracy, and enables growth while reducing your team’s manual workload. Investing in EDI is investing in operational resilience, scalability, and industry readiness. Contact our team today to learn more about EDI 365 and schedule a demo to see our app in action.

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