7 Reasons to Invest in EDI Solution Within Dynamics 365

May 13, 2020 12:41:29 PM

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In today’s digital world, many organizations use Electronic Data Interchange (EDI) for their critical B2B transactions. However, only a few have realized that EDI can do more than just that—and they are enjoying the more significant automation benefits through data integration tools and solutions.

Why EDI?

EDI offers an efficient way of conducting business transactions. Some of the key benefits include cost reduction, workflow automation, faster document processing, minimized error rate, and improved relationship with customers and partners.

For instance, when a retailer buys a product from a manufacturer, the former submits a purchase order following which the latter sends an invoice. Finally, both entities exchange receipts of acknowledgment.

EDI implementation

EDI can be implemented in several ways, but the two common approaches are: embedded and connected.

Embedded EDI:

In this method, EDI is already connected with ERP and is directly linked to all the data. It enhances your data integration capabilities and thus enables you to offer a better user experience.

Connected EDI:

In this method, EDI is a distinct software with no direct data linkage to ERP or any other tool. It needs to pull out all the data from ERP continuously on its own.


While the basics clearly show that having an embedded EDI solution offers more benefits than the connected solution, there are a bunch of reasons to understand how and why.

Some of the main benefits of investing in an EDI solution embedded in Dynamics 365 are:

  • Integrated processes
  • Enhanced visibility
  • Efficient troubleshooting
  • Configuration ability
  • Improved performance
  • Better compliance
  • Easy software updates
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