By now, many investors have heard of the electronic data interchange. However, this has been a scary topic for many people, as the non-technical people struggle to understand the basics. Besides, you need to have more money to invest in integration project because of the EDI consultants, connectivity fees and professional services which are involved.
Today, even small companies are implementing EDI software integration as a necessity to run their business and develop good relationships. EDI is that process that allows a company to exchange business documents like purchase orders, ASNs or invoices with partners like retailers or vendors. When transporting the EDI file, it must be done through a secured network and communication channels protocol like an FTP or AS2. EDI aims to send that standardized message in EDI format.
Some companies are using the paper-based exchange of their business documents. However, they are not getting value for money. There is a need to go for electronic-based technology so that the business enjoys the major benefits like reduced costs, increased processing speed and cutting on errors among business partners. With the use of EDI in your company, it will be improving the operations by lowering the costs and increasing the speed of exchange and accuracy.
When you decide to go for the EDI software integration in your organization, it means that the use of papers, printing filing, printing and document retrieval will be reduced and eliminated by through the EDI transactions. With the expenses associated with the above stopped, your company will save a lot of money by up to 30%.
When your business invests in this software, you add speed and accuracy. The integration will be speeding up your business cycles. When you have to exchange anything through the system, it is done within minutes rather than staying for days and weeks waiting for the service like postal services. Besides, there is accuracy because there is improved data with the reduction of errors during transactions.
One thing that comes when you go by this technology is increased business efficiency. You will automate paper tasks and allow the employees to do the high end value tasks since there is a better tool. With the quick processing of your business document, it will lead to less reworking hours and reduced canceled orders. When data exchange gets automated, ensure the secure sending of data on time and still tracked. You also benefit from shortening the order processing and delivery time.
In many cases, the benefit that comes by using the integration come at strategic business levels. Here, you will have real-time visibility into all transaction status. You will be able to make fast decisions and improve the responsiveness and changing customers and the demands from the market. Your business will reduce lead times and streamline your ability to enter into new territories.
By having an EDI model in place, many companies will now feel secure and safe. The model allows strict access to the authorized users equipped with tracking and audit trail capabilities.