Why Should You Consider a Shift to Integrated EDI?

Nov 15, 2019 7:52:18 AM

EDI Studio and 3PL

EDI or Electronic Data Interchange can help you address multiple challenges of supply chain management at every stage of the process. Businesses can choose to either use independent EDI applications for different supply chain operations or use one integrated EDI for all the activities.

EDI or Electronic Data Interchange can help you address multiple challenges of supply chain management at every stage of the process. Businesses can choose to either use independent EDI applications for different supply chain operations or use one integrated EDI for all the activities.

Independent solutions for specific processes would eventually leave you with several detached applications which may not be compatible with each other. Though a few businesses still choose to work with isolated EDI applications, an integrated EDI can help you maximize the benefits of the solution. EDI integration automates and streamlines the flow of data from one end to the other end of the supply chain process.

Let us take a close look at a few key benefits of an integrated EDI solution.

Reduces Costs: According to a study, integrated EDI can help businesses to save up to 64% of their processing costs. At the time of investment, an isolated application may seem much cheaper than an integrated solution. However, in the long run, the price of an integrated EDI would be much less than the total cost of numerous independent solutions.

Even almost a decade ago, in 2010, a study has shown that without an integrated EDI, the cost of one purchase order can be a staggering $53.

Improves Speed: Despite the large volumes and complex transactions, integrated EDI does not compromise on the speed. It can considerably reduce the processing time. As per studies, integrated EDI can save a remarkable 10 minutes of processing time per document. It also saves more than 20% time of the order-to-cash cycle.

With integrated EDI, you can directly import EDI message exchanges to documents. It also allows you to create and exchange purchase and sales invoices directly with the trading partner.

Increases Accuracy: An integrated EDI solution automates essential operations across inventory management, distribution management, purchase order processing, and production management. Automation, which allows touchless document handling, minimizes human interference, and manual data entry. As a result, the errors in the data flow reduce considerably.

Integration also enables a smooth and error-free document flow between the trading partners. A study shows that integrated EDI can reduce transaction errors by 30–40%, which includes both keying and re-keying errors.

Boosts Productivity: As integrated EDI reduces processing time and improves accuracy, businesses can use their resources efficiently to increase their overall productivity. EDI integration enables one-time data entry, automated reconciliation, and hassle-free management reporting.

A few other benefits of integrated EDI include:

Streamlined processes

Decreased cost of labor

Accelerated payments

Reduced response time

Better inventory control

Enhanced shipment planning

Improved and informed decision-making

In this ultra-digital business world, integrated EDI can be a competitive advantage. It can manage crucial aspects of your supply chain cycle efficiently with little effort. It not only helps you take care of your internal processes, but it also allows you to build better trade partnerships with other businesses.

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