Benefits of EDI
EDI replaces order processes such as mail, fax or email by electronically exchanging business documents between two companies with different internal systems.
There are different types of EDI to support the electronic exchange of documents. Regardless of the method, EDI enhances operational efficiency which companies greatly benefit from.
The order processing life cycle is shortened significantly by adopting EDI into an orgnization's business flow.
Minimizes redundant data entry
EDI virtually eliminates manual entry and re-keying of information. Received transactions contain the data that is easily extracted into the response documents. EDI greatly reduces manual labor in processing orders.
Eliminates the expense of manual steps
Expenses associated with manual order processing such as paper, ink, emailing, printing, postage, etc. is costly. The likelihood of misplaced or lost orders increases with various methods of exchanging business documents. Searching for these business documents between paper, email or fax is time consuming and inefficient. EDI saves time, money and shortens the order processing cycle.
Reduces lead time on orders and need for more inventory
Easily and quickly process orders with a structured and streamlined process. Lead time is significantly reduced from initiation to completion. Inventory and stock levels can easily be tracked by integrating EDI with internal business processes.
Improves efficiency of communication and relationship with business partners
Quicker response time
EDI allows for real-time visibility of all activity and transactions with all of your trading partners. Process EDI transactions with minimal data entry resulting in quicker response time and reducing order-to-cash cycle.
Eliminates errors and submission of inaccurate data reducing costly chargebacks
Integrated electronic data interchange makes the order processing life cycle automated and streamlined