The two messages with the fastest ROI
If you are a retailer trying to decide where to start with EDIFACT, the answer is almost always DESADV and RECADV. Not ORDERS — even though that is the first message most people think of. The advance shipping notice and goods receipt confirmation deliver faster, more measurable results for most retailers.
Here is why, and why most Bulgarian retailers are still not using them.
What DESADV does
DESADV (Despatch Advice) is sent by your supplier before goods leave their warehouse. It tells you exactly what is being shipped: which purchase order it fulfils, which articles, which quantities, which batch numbers, the expected delivery date and time, and in some configurations the pallet and carton structure.
When the DESADV arrives in your WMS or ERP before the truck does, your warehouse can:
- Pre-allocate dock space and resources
- Pre-create the goods receipt document
- Cross-check the inbound quantity against the purchase order before the truck arrives
- Automatically identify and flag discrepancies
What RECADV does
RECADV (Receiving Advice) is sent by you to your supplier after goods arrive. It confirms what was actually received — quantities, any shortages, any damaged goods. When your supplier's invoicing system receives the RECADV, it can automatically match the invoice to the delivery confirmation and raise discrepancies for resolution before the invoice is even issued.
Together, DESADV and RECADV create a closed loop: the supplier says what they are sending, you confirm what you received, and the invoice reflects reality. Disputes drop dramatically.
The ROI case
A mid-size Bulgarian grocery retailer processing 500 deliveries per week, each requiring manual goods-in paperwork and subsequent invoice reconciliation, typically has 3–5 staff fully occupied with this work. After DESADV/RECADV automation:
- Goods-in processing time drops by 60–70%
- Invoice discrepancies requiring manual resolution drop by 80–90%
- 2–3 staff members are freed for higher-value work
Why most Bulgarian retailers are still not doing this
Supplier readiness is the bottleneck. Most large Bulgarian retailers could implement DESADV/RECADV on their end in a matter of weeks. The challenge is getting suppliers to send DESADV messages. Many Bulgarian suppliers — particularly smaller FMCG producers — do not have ERP systems capable of generating EDIFACT messages, or have not invested in the integration to do so.
The onboarding process is perceived as too complex. Traditional EDI onboarding processes required suppliers to install software, certify message exchanges, and complete lengthy testing procedures. This put off smaller suppliers and slowed adoption.
Nobody owns the supplier onboarding program. In many retail organisations, EDI integration lives in IT, but supplier relationships live in procurement. When neither side owns the supplier onboarding process end-to-end, it stalls.
How to change this
The retailers that have successfully automated DESADV/RECADV with a broad supplier base typically did three things:
- Started with their top 20 suppliers by volume — these account for 60–80% of deliveries and the ROI is immediate
- Made DESADV a contractual requirement for new suppliers — rather than asking for it, they required it as a condition of listing
- Provided a web portal for smaller suppliers — a simple web interface where suppliers can manually enter despatch information that gets converted to DESADV automatically, removing the need for suppliers to have their own EDI capability
Further reading
For a complete picture of how EDIFACT works in retail supply chains, read our EDIFACT basics guide and the full EDIFACT message type reference.
If your retail business runs on SAP, our article on EDIFACT and SAP integration covers the specific MM module touchpoints for DESADV and RECADV.
Ready to automate your goods-in process? Book a free retail EDI assessment with our team.