Electronic Data Interchange Software Is So Famous, But Why?

Staying updated with the technology is the key to success in business and other aspects of life. And Electronic data interchange software is one of the most popular solutions that every business needs to integrate in their system. From reducing costs to lessening errors and more, EDI makes business transactions quicker and easier.

Have you been wondering why and how Electronic Data Interchange software (EDI)  has become so famous among business owners? How it helps businesses? Then check out the post below that will give you a brief idea about Electronic Data Interchange technology and its benefits.

What is EDI technology?

EDI can be simply defined as an exchange of business documents via computer-to-computer in a standard electronic format between different business partners. Electronic Data Interchange software offers various benefits such as reduced costs, automated workflows, quicker document processing, less errors, and much better relationships with partners and customers. EDI data comprises of crucial information regarding business transactions.

What is EDI Integration?

EDI integration is created when an EDI workflow is set up between the business partners. It can be attained via two steps:

  • Setting up EDI documents, transactions, protocols and endpoints that will be used for data exchange with business partner
  • Converting the EDI data into a format that can be used in backend technical ambiances.

Why go for EDI Integration?

To keep up the pace with the current hyper-digital business world, EDI integration helps businesses in handling crucial B2B transactions efficiently. By utilizing the EDI integration to its fullest potential businesses can reap automation rewards via enhanced visibility over business partner transactions.

What are the advantages of EDI integration?

EDI software integration has a variety of reasons that makes it famous among the businesses. Let’s have a look at some of the top advantages of Electronic Data Interchange software below:

  • Cost Saving

Using an EDI software helps businesses in executing workflows that reduces costs. Expenses such as printing costs, reproduction, storage and postage costs are eliminated. With a streamlined documentation process companies comply with EDI service standards that helps companies to avoid fines due to SLA violations and other performance issues.

  • Speed

EDI software enables companies to cut processing time via automation which further speeds up business cycles. Particularly, the order to shipment cycle time gets reduced by 60 to70 percent. Moreover, transactions are exchanged in few minutes instead of days or weeks that often seen with manual transfers.

  • Accuracy

EDI software helps organizations in eliminating errors, which are common with manual jobs. EDI solutions automate the burdensome processes and eliminate errors caused by humans.

  • Efficiency

EDI is fast and accurate which makes it a popular integration and automation method to companies everywhere.  It also improves relationships with customers, lessen the errors, and accelerates delivery of goods and services.

  • Security

With EDI software integration companies feel safe and secure as these solutions are designed for ensuring security and allows only strict access to authorized users and are often equipped with document tracking and audit trail capabilities. Besides that companies can also share data securely across several communication protocols and security standards for ensuring compliance with global business mandates.

Author Information:

This article is written by Aurora Software Inc. After reviewing several translation packages, Aurora Software, Inc. has entered a partnership with the Kleinschmidt Company, a third party Value Added Network (VAN), which specializes in EDI processing. This partnership saves their clients money by allowing them to take advantage of Aurora’s EDI transaction volume discount.

What is the Significance of Using Electronic Data Interchange Software?

Electronic Data Interchange (EDI) is the exchange of business documents digitally between companies by using computers and replaces the old school mailing and faxing processes. EDI allows you exchange standard documents like purchase orders, invoices, and shipping documents. EDI is used in different industries by most companies to ensure continuity, collaboration, standardization or ordering and communication. Therefore, using Electronic Data Interchange Software makes really sense.

Want to take advantage of Electronic Data Interchange (EDI) solutions? If yes, then you’ve made a good decision. So, take a closer look at the benefits of using Electronic Data Interchange software discussed below:

Save ample time & act quickly –

Currently, the requirement for manual data processing is minimized because of the time-consuming translation process, conversion and exchange. With appropriate computer software solution, all of them can be done automatically.

Exchange of documents is much faster than traditional methods like mail. You can search the database to find specific goods at any point of time place and can order and receive any confirmation right away. However, transactions will be done within minutes rather than days or weeks.

Minimize costs –

Exchanging documents through easy to use software applications improves overall visibility and transaction speed. In fact, it will help you save on the cost of paper, printing, copying, filing, storage, and manual labor.

Reduce the errors and improve quality of data –

EDI solutions aim to improve quality of data by minimizing the number of human errors that can be caused through handwriting, misunderstandings on the phone, lost mail, typo mistakes, etc. You don’t need to copy the data from paper documents to the computer system as everything will be handled electronically through an EDI solution.

Security control in real-time –

Generally, traditional data exchange methods are not considered as fully reliable as posts go missing, emails in spam, etc. Even, these things can be intercepted or compromised by unauthorized accesses. When you implement EDI solutions, you can get assurance that your appropriate receiver will get all documents safely and conveniently.

Remember that, the system accessibility requires to be authorized; so that you can know who has viewed and modified files in your database. This means, you can track business-related important documents in real-time which lead to faster decision making and responsiveness.

Enhanced management –

Electronic Data Interchange allows you to exchange documents smoothly without any room of errors and execute orders quickly. Rest assured that, your company won’t be left with an empty warehouse or with shelves filled with unsold products.

It’s time to bring in the automation to paper documents and manual processing tasks so that your employees focus on neglected tasks and make them more productive.

Less delivery time –

EDI solutions ensure quicker execution of commercial transactions which leads to less time for order, sales, invoicing, delivery, and payment cycle. It will shorten the order processing and delivery time which means your company can minimize their inventory levels and freight costs.

Environment-friendly –

Electronic Data Interchange software solutions are far more eco-friendly alternative to paper-based processes. When you make a switch to EDI solutions, this will significantly reduce the use of paper, ink, and other office supplies. It results in less waste and minimizes the amount of trash produced by your company.

Final Consideration –

Your company should implement EDI tools in order to replace the traditional approach for data exchange i.e. email, fax, and postal mail in most circumstances. More often, they are used combined with a data integration platform that collects data from different sources on the premise or in the cloud.

Author Information –

This article is written by Aurora Software, LLC, which specializes in providing highly interactive and efficient Electronic Data Interchange Software ensuring optimal performance and functionality of business operations over manual data exchange platforms.