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.