Ever Hear Of EDI Benefits? Probably Not – Find Out Now
Did you know that 70% of all orders are automated by EDI/XML, portals, or exchanges? However, EDI came out as the preferred method of choice when it came to receiving and sending orders.
A lot of businesses in the United States and around the world have already implemented EDI and reaped the benefits of it. However, there are still some businesses that need to start using EDI.
Keep reading to find out what EDI is, how it works, and what the main EDI benefits are.
What is EDI?
EDI stands for electronic data interchange. Data can be processed using computer-to-computer exchanges. This process can be more effective than you and your employees having to input and send data.
By eliminating human error, such as forgetting to input data or not sending the right documents to your partners, business EDI can streamline your business to ensure it runs smoother.
The best part about EDI is that it doesn’t matter if your computer system isn’t compatible with your partners because EDI uses message standards to quickly communicate data.
How Does EDI Work?
Almost all EDI systems use a software interface, which allows you to directly send and receive documents. The program is run on both the sending and receiving computers, which ensure the efficient sending and receiving important information and documents.
An employee can enter the details into the system which will then create the document. When the document is ready, it can then be accessed by the receiver. For example, if you’re creating an invoice or a purchase order then your employee will put in the details and once it is completed, the document will be sent to the recipient.
The process of EDI can help to speed up manual time-consuming tasks, such as inputting invoice data, uploading it onto your system, and then sending it. By freeing up more time, you and your employees are able to get on with the real work.
How to Benefit From EDI
There are countless benefits of EDI that can help your business, no matter what industry you work in. Due to their efficient nature, EDI systems can create shorter business cycles and optimize your business’s communication.
1. Reduce Your Costs
EDI can help your business reduce its spending. By automating documents and sending them to your partners and recipients, your business will save money on the cost of paper and the hours spent. These costs add up and although you might not be aware of it, your business could be losing hundreds of dollars.
Once you’ve made savings, this money can be spent elsewhere in your business. Cutting down on the number of resources used, such as paper, can also help your business be more environmentally-friendly.
2. Boost Your Speed
EDI can help boost your speed, which not only leads to happier employees, it also leads to more satisfied customers and client. Your employees are able to save time spent on mundane tasks and focus on what they’re really good at.
While your customers and clients are able to receive confirmation and important documents quicker, which helps to build better relationships and loyalty. Happier and more satisfied customers and clients are more likely to use your business in the future, so their experience is very important.
3. Be Error-Free
Manual data input can encounter errors, which can be costly for your business. If you want an error-free, efficient business that is known for reliability and accuracy then you need to implement EDI.
By having no space for errors in your data, your business can also free up more time to spend on the important stuff. For example, your employees might spend hours searching for documents in their emails or scrolling through documents trying to find errors, but with EDI this will all become a distant memory.
4. Improve Your Logistics
Logistic management is vital for any business. To succeed as a business, you need a foolproof logistics management scheme that allows you to manage and control the production, purchases, and deliveries of your business. EDI can help with just this.
Streamlining your data, documents, and transfers can help to improve your logistics. Say goodbye to lost invoices or purchase orders and hello to effective, easy to track data. Your documents will also all be in the same format as your partners and clients, which saves your accounting team from having to decode individual invoices and purchase orders.
5. Increase Your Productivity
EDI can help to increase your business’s productivity levels. By slicing the time it takes to send and receive data and documents, your employees will get less distracted. It’s always hard to concentrate on tasks that take long periods of time, but easier to focus in short bursts.
The data, which is found all in one place, can also be used by your employees to effortlessly check inventory and returns. When a task is straightforward, your employees are more likely to stay focused and less likely to get things wrong.
Still not convinced that EDI is right for you? Then check out some more benefits of EDI.
Implement Electronic Data Interchange and Reap the EDI Benefits Now
There are so many EDI benefits that can positively impact the success of your business. Implementing a simple time-saving tool such as EDI couldn’t be any easier and yet it can really help to transform your business. Don’t waste any more time on mundane tasks by implementing EDI now.
For more great advice and tips on how to effectively run your business, check out more of our articles.