EDI (Electronic Data Interchange) is the exchange of business documents between trading partners via standard electronic formats. It has been around for over a few decades and its concept originally inspired by military logistics. The benefits of EDI are helping business relationships globally. How? Let’s start with it’s purpose.
The purpose of EDI is to lower costs and reduce human error in the logistical and administrative process. For this reason, many industries like Electronic, Retail, Automotive and Financial Services have transitioned to EDI services. With an EDI solution, trading partners can process documents like invoices, purchase orders and advanced shipment notices. An EDI service standardizes documentation by electronically interpreting its contents and allowing all members of the supply chain to have a seamless experience.
The benefits of EDI are still proving themselves to date. Speed, accuracy and savings have been the talk of the industries. It’s said that there have been 30-40% decrease in transaction errors by avoiding faulty handwriting or print issues. Similarly, buyers are experiencing millions in savings. The supply chain process has strengthened greatly and EDI solutions have contributed to long term business development and relationships.
EDI can be purchased as a software for your business or can be used as a web-based cloud service. Traditionally, an EDI software comes with a greater price tag. EDI web-based services are more economical and operates similarly to any mainstream email.