For manufacturers of consumer goods, deductions are an undesirable but commonplace reality. A CPG (consumer packaged goods) manufacturer sends an invoice to a retailer for $100,000 of goods but yet only receives a cheque for $90,000 in return. Why? The retailer in question has applied “deductions”.
Electronic Data Interchange (EDI) is, fundamentally, the transfer of financial information between businesses. The physical supply chain between buyers and sellers requires a financial supply chain that can capture the complexity of the trading environment. Structure and automation in this process enables vendors, customers and financial institutions to support the physical supply chain in a timely and accurate manner.