The Benefits of EDI Integration
Faster and Smarter
According to industry analysts, the right EDI software can speed business cycles by 61 percent. Why? In large part because data has fewer errors, since there’s no chance of illegible handwriting, faxes sent to the wrong number, or information entered incorrectly. In addition, there’s no need to “translate” incoming or outgoing EDI transmissions at their destination since the system provides a set of universal standards for converting data streams to more familiar document forms.
EDI also offers a number of benefits when it comes to increasing total business efficiency. For example, fewer orders requiring correction means better inventory management, while limiting the number of paper-based tasks means more time for staff to concentrate on ROI-driven tasks. Real-time tracking also eliminates the need for long payment waiting periods or costly follow-ups.
The biggest benefit of EDI when it comes to efficiency? Better time management. Rather than relying on approximations and past performance to determine processing time, electronic data interchange systems provide exact transaction timelines, allowing maximum employee time and computing resources.
EDI also offers the benefit of long-term returns. While initial deployment forms the foundation of inter-company document exchange, the right EDI provider allows you to scale on demand. True EDI mapping and integration across backend systems such as ERPs, warehouse management tools and account software allows EDI to become an integral part of the decision-making process. In effect, your business is able to transition from a focus on controlling supply to one of fulfilling demand. The result is improved short-term ROI thanks to paperless, automated tasks — and long-term returns when EDI becomes a central feature of your backend process.
It’s often easiest to talk about EDI in terms of cost savings, since these benefits are the most obvious of automated exchange technology. But lower spending only scratches the surface — speed, efficiency and strategy all benefit from broad implementation and streamlined integration. EDI levels the playing field, allowing businesses to easily transmit, receive and utilize data by leveraging common standards. The result is a democratization of business information, empowering your company to better control information at each stage of the supply and demand process, from ordering to payment to tracking and fulfillment.
Electronic Data Interchange (EDI) systems create a critical link between companies by facilitating the automation transmission of business documents, significantly reducing the need for manual inputs and virtually eliminating the possibility of human error.
The big advantage? Cost savings. But this is just the beginning — here’s a quick look at the range of benefits EDI offers your business.