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SPICE™ Glossary / Trading partner

Trading partner

A trading partner is any outside company you exchange business transactions with, such as orders, shipment notices, invoices or product data, including suppliers, customers, carriers and 3PLs.

In supply chain and EDI language, the company at the center of the relationship is usually a manufacturer or brand, a retailer or a distributor. Everyone it trades with is a trading partner: the suppliers it buys from, the customers and dealers it sells to, and the carriers and 3PLs that move and store its goods.

The role depends on the relationship, not the company. A distributor is a customer when it buys from a manufacturer and a supplier when it sells to a retailer. A manufacturer is a supplier to its own customers and a buyer from its component suppliers. That is why trading partner programs are usually organized by process: procure-to-pay on the buying side and order-to-cash on the selling side, with logistics running through both.

An EDI trading partner is one that exchanges standard electronic documents with you. Many trading partners connect only part of the way, or not at all: a non-EDI trading partner may send PDFs and spreadsheets, while a hybrid trading partner uses EDI for some documents and other channels for the rest. Each one still has to follow your rules if your data is going to stay clean.

How SPICE™ handles it

SPICE™ is built for every trading partner, whatever its role or technology. Suppliers, customers, dealers, carriers and 3PLs connect by EDI, API, a guided web or mobile workspace, spreadsheet upload or documents, and every channel follows the same governed process between your ERP and your supply chain. Your team sets the requirements once and sees every trading partner’s transactions in the same place.

FAQ

Frequently asked questions

What is an EDI trading partner?

An EDI trading partner is a company that exchanges standard electronic documents, such as purchase orders, ship notices and invoices, with you through EDI. Both sides agree on the standard, the documents and the connection method before going live.

Can a company be both a supplier and a customer?

Yes. Roles belong to each relationship. A distributor buys from manufacturers as a customer and sells to retailers as a supplier, so the same company can appear on both sides of your trading partner program.