Evaluating the impact of electronic data interchange on clearance sales: An action research study in wholesale market

Sammanfattning

Background Clearance sales are used in wholesale to manage excess inventory and create warehouse space. Manual procedures such as spreadsheet-based order handling often led to delays, inconsistent pricing and limited campaign reach. These limitations are further complicated by strategic consumer behaviour, where customers wait for deeper discounts, making timing and accuracy critical. This study examines how the implementation of Electronic Data Interchange (EDI) affects clearance sales performance in a wholesale context. Theoretical Framework The research draws on literature in inventory control, process automation and consumer behaviour. It focuses on clearance sales execution, performance measurement and the role of EDI in improving operational efficiency through faster pricing, broader order coverage and reduced manual workload. Methodology A mixed-method case study was conducted in a Swedish wholesale context during the first phase of EDI implementation. Quantitative data on pricing accuracy, sell-through rate and order processing time was collected before and after implementation. Five semi-structured interviews with employees in clearance and outbound operations provided complementary qualitative insights. Empirical Results The results show consistent improvements across all performance indicators. EDI reduced average order processing time by 63 percent and increased the number of stores reached by 74 percent. The average discount level decreased from 63 to 52 percent, indicating improved pricing precision and broader stock distribution. Interview participants confirmed reduced manual effort, fewer pricing errors and better coordination between departments. Discussion EDI aligned pricing plans with execution by automating routine clearance steps, helping to remove manual bottlenecks. The transition required internal adjustments, but the automation allowed for faster and more structured clearance execution. Implications EDI can strengthen clearance sales performance even when implemented on a limited scale. By improving speed and reach while reducing manual work, companies can scale campaigns and optimise inventory turnover more effectively. Limitations This single-case study reflects a short implementation window. Broader studies are needed to evaluate long-term outcomes and cross-industry relevance.