Exchanging stock and order data using SFTP

Manual processes and outdated systems are no longer adequate. A simple error in stock levels or a delay in order updates can leave customers frustrated and relationships damaged. The upshot of this is that your business could end up missing out on sales it would otherwise make. 

By contrast, when data flows smoothly, automatically and securely between systems, businesses can fulfil orders faster and make better decisions based on reliable information. In this blog, we’ll look in closer detail at why automatically exchange of stock and order data matters.

Understanding stock and order data 

At its core, stock and order data exchange is about ensuring that every link in the supply chain has the necessary information when it’s needed. This typically includes current stock levels, incoming orders, purchase orders, order confirmations, shipment updates and information on returns. 

Because this data underpins so many operational processes, accuracy and timeliness are critical. Suppliers need to know exactly how many units are available before confirming an order, while retailers need real-time updates on shipping and fulfilment to keep customers informed. Discrepancies caused by manual process can have ripple effects throughout the supply chain. 

Business benefits of automated data exchange 

Businesses typically adopt one of three approaches to data exchange. Manual transfer is at one end of the spectrum, with files and figures either shared by email or uploaded directly into systems. This approach is obviously simple, but it’s highly susceptible to errors. 

At the other end are API integrations, which enable systems to communicate directly in real time. While powerful, APIs can be complex and expensive to develop and maintain, particularly when dealing with multiple partners or legacy systems. 

In between lies file-based exchange, where data is shared in structured files (such as XML or CSV) according to a regular schedule. This approach offers a balance of flexibility, reliability, high-compatability and cost-effectiveness, and it’s here that secure file transfer methods like SFTP and automation toolscome into play. 

Secure, automated transfers with SFTP 

When exchanging business-critical data, particularly sensitive customer or commercial data, it goes without saying that security is paramount. SFTP, or Secure File Transfer Protocol, encrypts data in transit and uses secure authentication methods to ensure that only authorised parties can access it. It is widely used across industy software for safe, secure and reliable file transfer. 

To make this process even more efficient, a lot of organisations use automation tools to native features in warehouse management systems/ERP solutions to push and pull data between locations (usually clients and suppliers). These tools/software allow data transfers to be scheduled, monitored and executed without manual intervention so that stock and order information is always delivered on time. Combined with SFTP hosting, this provides a robust, secure and straightforward way of keeping systems synchronised, even across complex supply chains. 

Best practices for successful data exchange 

Getting stock and data exchange right is about process and planning as well as having the right technology to hand. Standardising data formats, naming conventions and file structures can all make it easier to integrate with partners and avoid errors. Monitoring and auditing transfers helps catch issues early, while building in error handling and recovery processes helps to build resilience. 

Automation should be a priority wherever possible. Reducing manual touchpoints not only saves time but also lowers the risk of mistakes creeping in. You should always prioritise security by using encrypted transfer methods like SFTP and trusted automation tools/inbuild features of your business software. 

Conclusion 

Efficient, secure stock and order data is not an optional extra or something that’s merely nice to have. It’s a fundamental pillar of modern commerce. By ensuring that the right information reaches the right places at the right time, you can greatly streamline operations, improve overall service standards and respond more quickly to shifts in customer demand. 

For many organisations, the combination of file-based exchange, the security offered by SFTP/FTPS and native features in your ERP/warehouse management system is an ideal solution: one that’s simple to implement, can be replied upon from day to day and which is scalable as your business evolves. By taking this kind of approach, you can make timely and secure data exchange giving your business a genuine competitive advantage.