How can you transform your business through EDI?
Oct 09 2019

Technological advancement has played a significant role in streamlining business processes which were earlier dependent upon confined traditional processes. Electronic Data Interchange or EDI is one such technological revolution which is now being adopted and used by businesses of various sizes and industries.

EDI is the exchange of data between two or more than two businesses on a standard electronic format, and there is no need for human intervention in it. EDI is mostly used by large corporations to streamline their data exchange process, but now even small businesses can implement EDI in their organization. 


Files and data like invoices, purchase order, sales order, and advance ship notices are sent by using the standardized electronic format built through EDI. You will need to use an Electronic Data Interchange software service, and you will be able to streamline the whole data exchange of your business.

Why do businesses need EDI?

Every year, the amount of data being produced by each business is increasing at a breakneck pace. Exchanging and processing a massive amount of data from one business to another safely is becoming critical. Using the traditional method of exchanging files is not only time consuming, but many other restrictions come along with it. 

This is why the businesses need EDI in order to gain competitive advantage and to get on the road of success you strive for. By implementing EDI, a business will not only simplify its data exchange process, but it will also be able to improve the operational performance.

What are the advantages of shifting to EDI?

Reduced manual errors

Nobody wishes to make errors, especially while dealing with business data. But it doesn’t matter how many strict standards and protocols you design for data exchange in your organization, if you are using a manual process, then you will always be prone to errors. Without accuracy, data exchange becomes ineffective, and that hampers the business.

EDI helps businesses to automate the data exchange process so that errors while re-keying or processing the data manually are nullified. In EDI, data is received exactly as transmitted, and that’s how a business achieves maximum accuracy. So, instead of developing a mechanism for minimizing errors in manual processing of data, shift to EDI.

Improved speed

In business, time means money, and if you are spending a lot of time in data exchange, then your productivity will be hampered. Speed in the data exchange process is not only necessary for keeping the productivity of business on track, but it is also essential to make the operational process seamless. Manual data exchange process consumes a lot of time. From processing the data to re-keying, there are many steps involved.

But with EDI, you can boost the speed of data exchange by many folds. EDI automates the whole data exchange process, and you can complete the data exchange process in minimal possible time. The time that you save through EDI can be used in other essential business processes.

Increased productivity

The only way you can increase productivity in your data exchange operation is by increasing the number of staff. But this is not a practical solution for most small businesses since they are always struggling with limited resources and budget constraints. And that’s where EDI becomes a savior for small businesses.

Through various studies, it has been seen that EDI has helped businesses improve their productivity by almost 7%. But the best part of increasing productivity through EDI is that you don’t have to burn a hole in your pocket to shift to EDI solution. Those days are long gone when EDI was confined to large businesses only, now small businesses are also using EDI on a large scale, and that’s because of its affordability and benefits.

Easy receipt verification

One of the most time-consuming tasks in exchanging files like purchase order and a sales order is receipt verification. Since confirmation of receipt is vital, most of the staff spends a lot of time in it to reduce the chances of errors. Along with this, data validation is also a cumbersome process which makes data exchange process a complex task for the employees.

EDI automates both the receipt verification and data validation process. There is no chance of delay in receipt verification and data validation while using EDI as everything is automated in this advanced data exchange solution.

Manual data exchange process will keep on guzzling your money, time, and effort while you will always be on the edge of errors, safety risk, and delay. This is why shifting to EDI through an Electronic Data Interchange software service is the best idea to streamline your operations activity. EDI is not only an affordable option, but it is also the best data exchange solution available in the current era.

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