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ELECTRONIC DATA INTERCHANGE (EDI)

WHAT IS EDI?

EDI stands for Electronic Data Interchange. It is a computer-to-computer exchange of business documents. This exchange is based on a standard electronic format which allows business partners to interact.

When sending EDI documents there are three steps you should consider: Prepare the document, translate the document into the standard EDI format and then transmit the EDI document to your partner.

Many methods exist across the trading community. Whether you are looking at EDI for the first time, or expanding an existing EDI infrastructure to support business partners across the globe, it is important to identify the right method for your requirements. That could depend on technical infrastructure, budget and other factors. Many larger companies adopt hybrid solutions to connect with their business partners, dependent on the size and frequency of their transactions.

Some common set-ups include:

  • Direct EDI/Point-to-point
  • EDI via VAN
  • EDI via AS2
  • Web EDI
What is EDI

BENEFITS OF EDI

EDI benefits large and small organisation in many different ways. Small businesses can use it as a foundation for growth and large companies can build complex supply chains and partner relationships. Organisations with EDI solutions prefer to work with suppliers who are also using the electronic format. In fact, many make it a trading requirement or charge if you are not using it. The main benefits include:

Cost Saving

Lower your operational expenditure by eliminating the costs of paper, printing, storage, postage, and document retrieval in business processes.

Speed

Process automation significantly speeds up time delays associated with manual processing. Tasks such as data entry, filing and analysing data become more efficient. Inventory management is streamlined and made more efficient with real-time data updates.

Accuracy

Using EDI will drastically improve an organisation’s data quality, minimising the human error present in manual processes.

Security

Enhance the security of transactions by securely sharing data across a wide variety of communications protocols, meeting required security standards.

Business efficiency

Rather than focusing on menial and tedious activities, employees can devote their attention to tasks which add greater value. Customer and trading partner relationship management will improve because of faster delivery of goods and services.

Environmentally friendly

The migration from paper-based to electronic transactions reduces CO2 emissions, which is an important factor in corporate social responsibility.

EDI BY INDUSTRY

GET A FREE EDI ASSESSMENT

With over 16 years of Electronic Data Interchange experience across a variety of sectors, we can help you with software, services and support to enhance your B2B process automation. By filling out the questions below we will determine if your current solutions are meeting your business requirements or what actions may improve your existing business processes.