Did you know that EDI was created in the 1960s when computer systems got the ability to exchange data with one another? Although this technology has been around for a long time, some are still hesitant to implement it. If you want your company to adapt and grow, you need to consider EDI technology.
Read on to learn about electronic data interchange and how it can benefit your business.
What Is EDI?
EDI, otherwise known as electronic data interchange, is a computer to computer exchange. The devices will exchange popular business documents like invoices, purchase orders, shipping notices, and inventory levels.
For a business organization, EDI works to store all of your information within the ERP system. This allows you easier access and use of information needed to work with other companies.
EDI works as a business strategy that can ensure requests from one place are compatible with another. This means you are lessening the risk that orders won’t get placed. When all systems work together, crucial information is gathered.
Benefits of EDI
If your business plan involves manual processes, you are more prone to errors. An EDI solution can replace this process because it sets up a communication network between different systems. There are many benefits of implementing EDI technologies into your business.
Time-Saving and Improves Speed
The EDI solutions are straight forward which is why they are so much faster. Information flows quickly throughout a system when electronic data interchange technologies are used. Orders that come in get created automatically and doesn’t take up employee time.
Even in different time zones, there are no delays. You don’t have to speak over the phone with suppliers or other organizations because everything will be sent. This leads to saving time, improvement of speed, a better cash flow, and reduced inventories.
Eliminating Manual Errors
Technology has become so prominent that the use of manual labor is decreasing. Humans are more prone to error than technology. When you use an EDI system, the information getting exchanged is more reliable.
This leads to accurate information and the right conditions for transactions getting met. When you take out the middle man, you get an improved relationship with partners. You can also save money on late deliveries, incorrect product prices, and chargebacks.
Security
Your business organization will be more secure with EDI technologies because they are only accessible to authorized users. You can also enjoy audit trails and check archives if you believe you have gone through an inside security breach.
The different kinds of EDI technology will provide different security benefits. You can check out the best EDI technologies here to find the right system for your company.
Electronic Data Interchange Explained
As technology grows, those unwilling to implement change tend to fall behind. With so many benefits of technology, especially EDI, it is essential to bring it to your company. If you want a better relationship with your suppliers, improve speed and security, and eliminate manual errors, your company needs electronic data interchange solutions.
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