Are you wondering what is EDI and what can it do for your company? Here are some EDI frequently asked questions and answers to help you get started.
What is Electronic Data Interchange (EDI)?
EDI is the digital process by which businesses exchange information with one another. These businesses are also called ‘trading partners’. EDI documents can be safely and securely exchanged using EDI standard formats.
Companies use a special software to translate the EDI formats. Then internal applications, back-end computer systems or ERP can use that information.
EDI can solve a variety of industry and compliance issues. EDI software may also come with business benefits that aren’t possible when using manual processes.
What types of business challenges will EDI software help me solve?
As businesses scale, they can’t rely on exchanging information through manual processes. The risks of errors, compliance issues, and the drain on employee time simply become too great.
Adopting EDI software allows businesses to replace manual processes and paper-based systems. Thus, they can reduce waste, cut human errors and align with compliance standards. Also, EDI improves both efficiencies and relationships between trading partners.
EDI software increases the speed and accuracy with which employees exchange information. Plus, it drives down costs as businesses scale. Also, adopting an EDI solution creates a foundation for future growth. Specifically, scaling the business will not add to the complexity and risk of information exchange.
What are the benefits of EDI platforms?
EDI software helps companies optimize day-to-day business processes, partner relationships, and reporting. For example, EDI transactions replace inefficient document exchange methods. These include emails, phone calls, and paper-based exchanges. Plus, it automates the entry of purchase orders, advance ship notices (ASNs), and invoices.
EDI systems also create many efficiencies. These include reducing inventories, shrinking fulfillment times, and preserving IT resources. Establishing these practices drives long-term value.
What types of reporting does EDI software provide?
Standardizing information exchange creates new opportunities for the management and reporting of information. Unlike with manual processes, EDI solutions feature built-in reporting solutions.
What sorts of business benefits can I expect?
Companies who adopt the right EDI solution can expect improvements to the speed, accuracy, and costs of their information exchange. They may overcome long-standing internal compliance issues as well.
Over time, they can improve the productivity of their existing staff by removing manual processes. Also, adopting EDI software positions companies to leverage future business opportunities. They can consider new business partners without concern over how to manage new requirements.
How do I get started?
EDI software is accessible for almost any business, regardless of industry. Choose an EDI partner with flexible deployment options. Also consider services like outsourced EDI management and reliable Value-Added networks (EDI VAN). Plus, look for a company with a long history of successful EDI implementations.