Working with a new trading partner? What suppliers should know about EDI onboarding

Winning a new trading partner is a big step. It usually means larger orders, new distribution channels, and steady growth.

What often catches suppliers off guard is that onboarding today is as much about operations as it is about sales. This is also the point where many suppliers begin using EDI (Electronic Data Interchange) for the first time, and where labeling, documentation, and warehouse workflows all need to line up. Knowing what to expect ahead of time makes the process much smoother.

EDI is usually one of the first requirements

Most retailers, distributors, and marketplaces now require EDI for core documents such as:

Purchase orders
• Order acknowledgments
• Advance Ship Notices (ASNs)
• Invoices

For trading partners, EDI reduces manual work and improves accuracy. For suppliers, it means preparing internal processes so orders, shipments, and invoices all move smoothly between systems.

One of the common challenges we see is suppliers waiting to think about EDI until onboarding has already started. Starting earlier usually makes the timeline much easier to manage.

Testing often takes longer than suppliers expect

Before going live, most trading partners require testing. This step confirms that documents and required information are transmitted accurately.

Testing typically verifies:

Orders are received correctly
• ASNs contain required shipment details
Labels scan properly
• Invoices meet formatting requirements

Depending on the trading partner and your setup, this process can take a few weeks. Planning for that timeline early helps avoid rushed shipments and last-minute surprises.

Labeling and EDI work together

EDI handles the data, but distribution centers rely on physical labels to receive and process shipments.

Common requirements include:

GS1-128 carton labels
• Pallet labels with SSCC numbers
• Accurate packing slips
• ASNs sent before delivery

If the labeling and EDI data don’t match, warehouses may delay receiving or apply chargebacks. This is one of the most common onboarding issues suppliers run into.

Treating labeling as part of the same workflow as EDI helps prevent these problems.

Multiple systems need to stay aligned

Wholesale fulfillment usually involves several systems working together:

Your ERP or accounting system
• A warehouse or 3PL
• Your EDI provider
• The trading partner’s systems

EDI often acts as the bridge between these systems, moving order, shipment, and invoice data between them.

When responsibilities are not clearly defined, issues like missing ASNs or invoice mismatches can appear. Clarifying who handles what, especially when a 3PL is involved, makes onboarding much smoother.

Communication makes onboarding easier

Onboarding typically involves several teams on both sides:

Buyers or merchandising teams
• EDI or compliance teams
• Warehouse or distribution contacts
• Your internal operations team

Suppliers who keep documentation organized and confirm requirements early tend to move through onboarding more efficiently.

It does not need to be complicated. Even a simple checklist and a clear point of contact can make a big difference.

Preparation makes the biggest difference

Before onboarding with a new trading partner, it helps to confirm:

EDI requirements and timelines
• Testing procedures
• Labeling standards
• Warehouse or 3PL responsibilities
• Required documentation

A little preparation upfront usually saves a lot of time later.

Final thoughts

EDI onboarding has become a standard part of working with larger trading partners. While the process can seem complex at first, most requirements follow predictable workflows.

With clear expectations, aligned systems, and a bit of planning, onboarding becomes much easier to manage and scale as order volume grows.

If you are preparing to onboard with a new trading partner and want a clearer picture of how EDI, labeling, and testing fit together, our team is always happy to talk it through.

FAQ: EDI onboarding for suppliers

How long does EDI onboarding usually take?

Most onboarding processes take between two and six weeks, depending on the trading partner, document types required, and testing timelines.

What documents are typically required for EDI?

The most common documents include purchase orders, order acknowledgments, advance ship notices (ASNs), and invoices. Some trading partners may also require inventory or routing documents.

Do small suppliers need EDI?

Many retailers and distributors now require EDI regardless of supplier size. Even smaller suppliers are often expected to meet the same operational standards.