60 Benefits of EDI (Electronic Data Interchange)

Electronic Data Interchange has changed the way businesses manage and process their information on a grand scale. EDI solutions save immeasurable amounts of time and lost revenue from clerical errors. Simply put, EDI provides a technical basis for commercial “conversations” between two entities, either internal or external.

Here is the list of 60 benefits of EDI,

  1. Documents flow into and out of your business system without any human interaction.
  2. No delays between your customer sending an order and you receiving it
  3. Reduce manual effort
  4. Eliminate manual data entry errors
  5. Improve cash flow
  6. Achieve seamless translation, converting business system documents into documents that are global standards compliant.
  7. Mappings and translation are managed by EDI system, so there is no software to install or maintain.
  8. Exceed your trading partner’s needs with documents that are formatted to meet their specific business requirements.
  9. Connect directly with your trading partners using protocols such as AS2 or sFTP.
  10. Management capabilities for hundreds of trading partners
  11. MH10 shipping labels
  12. Access to a dedicated, experienced and knowledgeable service team
  13. Proactive notification email alerts
  14. Business rule validations
  15. Duplicate checking
  16. Reports for all inbound transactions
  17. Retrievable archive
  18. Document import and export to enable partial integration
  19. Purchase Orders (850)
  20. Invoices (810) and Credits (812)
  21. Advanced Ship Notices - ASNs (856)
  22. Remittance Advices (820)
  23. Text Messages (864)
  24. Purchase Order Changes (860) and Acknowledgements (855)
  25. Planning Schedules (830)
  26. Functional Acknowledgements (997)
  27. EDI can speed up business cycles
  28. EDI speeds up the transactions in just few minutes or seconds instead of days or weeks spent on sending manual postal mail or back-and-forth email communications
  29. Automates paper-based tasks. Frees up your staff time for higher-value tasks and provides them the tools to be more productive
  30. EDI can quickly process business documents accurately, which will help reduce manual re-entry of orders stock outs and cancellations.
  31. EDI ensures that all data sent on time and is tracked in real time. Automates application data exchange across supply chain.
  32. Shortening order processing and delivery helps organizations reduce inventory
  33. EDI reduces the transaction costs of paper, printing, reproduction, storage, filing, postage and document retrieval, saving businesses 1000’s of dollars.
  34. For buyers that handle numerous transactions, using EDI can also result in millions of dollars of annual savings due to early payment discounts
  35. In some cases, EDI is just 1/20th the cost of manual order processing, slashing costs by a factor of 20
  36. EDI also help eliminate costly manual errors which happens due to illegible faxes, lost orders due to manual processing or incorrectly taken phone orders.
  37. 40-50 percent of errors caused by manual data entry can be reduced with the help of EDI.
  38. EDI eliminates human errors from illegible handwriting, lost mail and keying errors
  39. Sellers benefit from improved cash flow and reduced manual processing, thus further improving business communication between trading partners / buyers.
  40. EDI improves business partner transactions and relationships by reducing the order-to-cash cycle time by more than 20%.
  41. EDI saves your trading partners valuable time and frustration by reducing the errors caused due to manual data processing
  42. EDI provides real-time visibility into transaction status, enabling faster decision-making and better responsiveness to customer and market demands, helping businesses adopt a demand-driven approach
  43. Product enhancements and delivery enjoy shorter lead times
  44. Because EDI offers a standard document language worldwide, it’s easy for business to enter new markets and further scale their business operations.
  45. By reducing the paper based processes, EDI helps reduce CO2 emissions and promotes sustainability.
  46. EDI increases operational efficiencies, leading to fewer errors and less energy waste
  47. By implementing EDI across business lines can help companies reduce costs significantly and save more money for other business operations.
  48. EDI Increases business efficiency
  49. EDI supports the development of business strategies
  50. EDI assists businesses in being part of green energy by help reducing carbon emissions which is achieved by eliminate paper based process.
  51. EDI enhances transactional security
  52. Integrating EDI into business process helps improve tracking and reporting of document transactions.
  53. A positive customer experiences can be achieved by implementing EDI into the business process as it enables efficient transaction execution, reliable product and service delivery.
  54. We can achieve great accuracy by integrating EDI within our business process which will eliminate manual data entry errors.
  55. Less network complexity
  56. Reduce lead times and inventory levels
  57. Improve supplier relationships. Help do business with multiple trading partners.
  58. Position yourself for success by automating your processes and improve business efficiency
  59. EDI enhance speed and establishes security
  60. EDI ensures order accuracy and elevates strategic decisions

EDI Blogs

Here are the list of recent EDI blogs.

Top 15 Supply Chain Terminologies First lets start off with What does Supply Chain Mean? To put it simply, a supply chain is a system that allows a manufactured product to reach a consumer in one or many steps. The 5 components of a supply chain: Planning  Manufacturing  Assembling  Packaging  Transporting  Delivery & Return  Ecommerce: … Continue reading “”

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Importance of 997’s – Functional Acknowledgement in EDI What is an EDI 997 – Functional Acknowledgment (FA) The EDI 997 is also known as EDIFACT CONTROL and x12 997 Functional Acknowledgement serves as a receipt from the receiving trading partner in response to a transaction sent by the sending trading partner. This document also reports … Continue reading “”

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What is an EDI VAN (Value Added Network)? An EDI VAN (Value Added Network) offers a business to business (B2B) network of electronic communications, a network which includes an array of ‘value added’ services, as well as facilitated communication protocols that otherwise would not be available when going through the Internet or regular phone lines. A value added … Continue reading “”

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This is a complete guide to EDI (Electronic Data Interchange).

In this in-depth guide you’ll learn:

  • History of EDI
  • What is EDI Compliance
  • How EDI works
  • Lots more

So if you’re ready to go “all in” with EDI, this guide is for you.

Let’s dive right in.

Complete EDI Guide

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