Updates
Reducing Errors in IT Distribution Order Processing with EDI Validation
In IT distribution, order processing errors are costly. A single mistake—wrong SKU, incorrect quantity, invalid delivery address, or miscalculated total—can lead to:
- Delayed shipments and customer dissatisfaction
- Return processing and restocking costs
- Credit notes and invoice corrections
- Damaged customer relationships
- Lost revenue from incorrect pricing
Manual order processing is inherently error-prone. Even experienced data entry operators make mistakes when handling hundreds of orders daily. The solution? EDI automation with built-in validation.
Common Order Processing Errors
1. Data Entry Mistakes
Human error in manual data entry leads to:
- Transposed digits in quantities or prices
- Incorrect SKU numbers (typos, wrong product codes)
- Missing or incomplete delivery addresses
- Wrong customer account numbers
2. Calculation Errors
Manual calculations for:
- Line item totals (quantity × unit price)
- Order subtotals and tax calculations
- Volume discounts and rebates
- Shipping costs
3. Format Inconsistencies
Different customers send orders in different formats:
- PDF purchase orders with varying layouts
- Excel spreadsheets with different column structures
- Email attachments with inconsistent formatting
- Manual interpretation leading to misinterpretation
How EDI Validation Prevents Errors
RDS Cloud includes a comprehensive validation layer that checks every order before it reaches your ERP system:
Product Validation
- Verifies SKU numbers against your product catalog
- Checks product availability and stock levels
- Validates product configurations and compatibility
- Flags discontinued or obsolete items
Pricing Validation
- Validates unit prices against customer price lists
- Calculates line item totals automatically
- Applies correct volume discounts and rebates
- Verifies order totals match line item sums
Customer Validation
- Verifies customer account numbers and credit status
- Checks credit limits before order acceptance
- Validates delivery addresses against customer records
- Confirms payment terms and conditions
Address Validation
- Standardizes delivery addresses
- Validates postcodes and address formats
- Checks for special delivery requirements
- Flags international shipping restrictions
The Impact
IT distributors using RDS Cloud report:
- 99.9% accuracy rate with automated validation
- 90% reduction in order processing errors
- 75% fewer credit notes and returns
- Faster order fulfillment with fewer corrections
- Improved customer satisfaction from accurate orders
Real-World Example
A leading UK IT distributor processing 1,000 orders daily was experiencing:
- 50-75 order errors per day requiring correction
- Average 2 hours per error to investigate and fix
- Customer complaints and relationship damage
- Estimated £50,000+ annual cost in error handling
After implementing RDS Cloud with validation:
- Errors reduced to 1-2 per day (98% reduction)
- Validation catches issues before orders enter ERP
- Automated correction for common issues
- Estimated annual savings: £45,000+
Getting Started
RDS Cloud's validation layer is configured during onboarding to match your specific business rules, product catalog, and customer requirements. Our UK-based team works with you to ensure all validation rules are correctly implemented.
Ready to reduce order processing errors? Learn more about RDS Cloud for IT distributors or request a free demo.