Jake is one of the stakeholders in a business that's been successful and profitable for years. He understands the market for his product and has just signed a contract with a global retailer to expand his business. Sounds great, except for one problem. Jake needs to implement an Electronic Data Interchange (EDI) solution, and he's not sure where to begin.
Jake's problem is not unique. Many companies struggle with the implementation and use of EDI services. Many others use EDI for their critical B2B transactions yet do not realize that EDI can do much more than that. They fail to understand the more significant automation benefits offered by data integration tools and solutions.
EDI refers to the concept of exchanging business documents electronically. With EDI, information communicated on paper (e.g., purchase orders, invoices) is transformed to an electronic format, offering an efficient way of conducting business transactions.
For instance, when a retailer buys a product from a manufacturer, the former submits a purchase order, following which the latter sends an invoice and shipment notice. Finally, both entities exchange receipts of acknowledgment.
An EDI solution ensures that you have a seamless communication channel among all trading partners with data updated in real-time. Organizations that do not implement EDI face higher expenses and increased error rates due to manual processing. The average cost to process a document manually is $45, and the cost to correct an error due to manual processing is about $172.
If you are just getting started with EDI, it would be best to utilize an EDI solutions provider's services. To Increase's Connectivity Studio and EDI Studio can enable EDI integration with Dynamics 365.
EDI services enable automated communication of information between two IT systems without human intervention. Some of its key benefits are:
Faster document processing
Minimized error rate
Improved relationship with customers, suppliers, and other trading partners
Check this blog for more information on the benefits of EDI integration.
Now that we know what EDI is and its benefits, let's understand the approach to follow for EDI implementation. A popular approach to EDI implementation is an Embedded EDI solution.
What is Embedded EDI?
In an embedded EDI solution, the EDI is connected with an ERP and directly linked to all the data. In other words, it is in sync with your ERP, such as Microsoft Dynamics 365. An embedded EDI solution enhances your data integration capabilities and allows you to offer a better user experience.
An embedded EDI solution within Dynamics 365 can streamline and automate supply chain management, thereby improving business efficiency and reducing turnaround time on orders.
If you are in the process of selecting an ERP solution or a reseller to meet your ERP needs, now is the time to invest in an EDI solution as well. Your reseller should be able to help you identify the best way to go about EDI implementation.
Some of the main reasons to invest in an EDI solution embedded in Dynamics 365 is that it offers:
Easy software updates
Are you interested in knowing more about each of these reasons? Here's a handy infographic that gives you seven great reasons to invest in an EDI solution embedded within Dynamics 365.