The startling fact about Electronic Data Interchange (EDI) is that though it has been around since the late 60s, many companies continue to use legacy systems to process transactions. In the conventional B2B sector, the range of transactions involve stages like the purchase and sales orders, invoices, shipping notices, and acknowledgments. All these stages have paperwork attached and require manual work. When you add manual intervention to a process, it can be painstaking and could result in errors. However, EDI can help with the process by minimizing human intervention, dependence on paper, and reduction of errors.
With EDI integration, you can automate the exchange of information throughout a supply chain. Doing this ensures that data that is critical to your business is transmitted on time. But that is not all; EDI integration in your business will help you with numerous aspects, some of which, we have detailed here:
Helps you save costs: Operating expenses keep adding up affect your bottom line and EDI can help reduce this substantially. You can reduce the cost of paperwork—which could include printing, photocopying, filing, storing, posting, and retrieving. You can also reduce the related administrative work.
Improves processing speed: When it comes to the processing of orders, you will find that speed can help you enhance customer satisfaction. And EDI integration can help you streamline your processes, update inventory on real-time, and improve reaction time.
Ensures processes are efficient: Depending manual processes can cause some errors and reduce the accuracy of information. When you use EDI, you will find that the data quality of an organization is better, and you will be able to fulfill your orders with ease and accuracy. The resulting efficiency improvement can be as dramatic as 30% or more.
Ability to scale operations increases: When your team can move away from mundane, repetitive tasks, they would be able to focus on being more strategic. With the change in the way people work, you can bring about a marked change in the way your company builds stakeholder relationships. As a result, your company would be in a position to scale operations quicker.
Can increase security assurance: The use of EDI would mean that the interchange of data would be subject to security protocols to ensure data privacy and security. When you can assure your stakeholders of the security and privacy of information, you can improve their confidence in your business and build up a good reputation in the market.
Seamless data interchange: Data is a valuable commodity in today’s market. With the integration of EDI, you will be able to provide all external and internal stakeholders with the means to interchange data seamlessly. This can help your business, and the stakeholders focus on their core rather than focusing on the transactional aspects.
It is green: With concerns about saving the environment and going green being the buzzword today, your company should be able to take steps in the right direction. EDI integration can help you dramatically cut down on paper, and this can be a definitive step to help improve the environment.