EDI or Electronic Data Interchange refers to the automated exchange of documents (in standard electronic formats) between business stakeholders using a robust and secure connection. The interchange of documents is not just limited to your organization’s supply chain but also other stakeholders like banks, agents, financial institutions, and even the authorities. With EDI integration, you can look forward to business-related transactions and communications that happen without requiring manual data entry or intervention.
Integration of EDI would mean that not only would your ERP interact with other systems, but the data format would also differ. EDI integration can result in the transformation of your business and teams when done right. It would push people to concentrate on strategic initiatives rather than the mundane details of their daily transactions. Sounds good? But do you know what are the three main aspects to consider before you go for EDI integration? You do not have to wonder what they are, as we will take you through each aspect.
The three aspects are:
You need to consider the following points under the business aspect:
- Processing rules—internal and external: When you are in the process of EDI integration you must consider that while some rules for business transactions are common, some of the parties you exchange information with will have different business rules. It is also a good practice to look at internal rules to ensure commonality across departments.
- Unplanned scenarios and deliverables: The challenge in EDI integration comes not from the common scenarios and the planned deliverables but from the ones you do not plan for.
- Customization requirements: When it comes to customizations, it is better to honor them rather than add to it.
You need to look at the below-given factors under the data aspect:
- Cross-reference challenges: When it comes to EDI, you need to be aware of the cross-reference challenges in terms of data. And you would be surprised that this can happen not just externally but also internally.
- Inconsistency in data: The data that is interchanged can have a lot of inconsistency, and this a factor that you should be cognizant of during your EDI integration.
- Varied formats and transports: When it comes to data and the interchange of it one of the main aspects that you need to keep in mind is the many formats that are used, and another one is the way it is transmitted.
When it comes to the partner aspect, you need to assess the following:
- Drawing the connection from your solution to EDI stakeholders: Before you start EDI integration, one of the first things you need to do is draw the communication lines between your solution and that of your stakeholders.
- The increasing demand for integration: In the integration process, you always have to factor in the increasing demand for EDI with an increasing number of stakeholders to ensure that you do not struggle later.