What is EDI Software?

EDI software is a tool that converts business data and information to trading partners in a standardized, structured, and paperless format that is compliant with EDI standards. Data such as EDI 850 purchase order and EDI 810 invoice are in document format. Each document type has a standardized layout that clearly displays and defines the information so it is easily understandable to all parties. 

 

EDI software was created to lessen the procedural demand around industry trading processes such as shipping and mass product purchasing, purchase order (PO) generation, etc. Historically, invoices, PO’s, shipping information, etc. were manually generated between trading partners, this process was very time-consuming and had very high error rates.

 

EDI software is a secure solution that significantly shortens the purchasing process, as well as reduces the costs associated with manual entry using automation. It facilitates the exchange of such business documents in an electronic real-time format between trading partners and across a variety of platforms and programs. 

Benefits of EDI Software

There are many benefits to deploying an EDI system. Electronic Data Interchange (EDI) follows a certain set of standards that allow the senders documents to flow straight through to the intended application on the receivers end. This enables the processing and return documents to be accepted and processed immediately. An EDI system not only saves time and money, but it also enables close collaboration between trading partners and helps build customer satisfaction and loyalty.

Time Savings
Cost Savings
Time-Saving

A reduction in errors and delays due to little to no human intervention. Along with the adoption of a common language, equals faster communication

Cost Savings

Order processing errors can be very costly. By cutting the costs associated with sending physical documentation (via fax, email etc), EDI software reduces the spending related to generating and distributing data.

Efficiency and Accuracy

Using EDI reduces errors and optimises the processing speed, while also improving the security and traceability of exchanges.

Different Types of EDI Software

Cloud-based or Internet EDI software

A cloud-based or Internet EDI solution will make important data readily available to any permitted users with an internet connection, enabling remote business partners to access data regardless of their location. 

On-premise

An on-premises solution will be accessible from one location or server but tends to allow more overall control and security.

 

Other Types of EDI 

There are many methods organizations will use in order to enable EDI across their trading community. Electronic data interchange (EDI) is one of the most common forms of structured electronic exchange of business documents between organizations. 

Read the full list here Types of EDI

Integrated EDI Solution

An Integrated EDI solution translates your inbound documents, like purchase orders, from your trading partners’ EDI files into a format that can be imported directly into your ERP, accounting or other business system.

Internet EDI Solution

Communication of EDI messages via the Internet. Internet EDI is most often considered in contrast to doing EDI via a VAN (Value Added Network). In this situation, Internet EDI is simply a communications pathway, where EDI data is passed between trading partners using Internet protocols.

EDI Outsourcing

EDI outsourcing is also suitable if you have implemented a fully integrated EDI compliant system but still have partners who want to send you faxes. 

Sign up for our Newsletter