Business Services

The advantages of implementing EDI in an organization

There are two quick and easy ways to improve the performance of your business. One is to improve operational efficiency, and the other is to reduce errors. When you achieve both, the gains are immediate and non-trivial. This is where EDI comes in, if you never looked at EDI before, here are some of the possible advantages:

EDI is the digital exchange of documents between two parties. With EDI all of your document exchange with partners goes through a system that is fast, and error free. The biggest benefit is the removal or partial elimination of human error. Data entry mistakes along account for as much as 17% of the time of a transaction.

Automation is another advantage. Systems no longer require human intervention to proceed with certain tasks. For example, when a new order comes in, when there is sufficient inventory, the system can automatically issue the orders, and the crews can execute them as soon as possible.

There is also an added layer of security. Often, paperwork is sent to the wrong supplier, or the wrong office, creating an opening for identity thieves and potential fraud. When you send documents through EDI, you know it is going to the intended destination. In the same vein, when the other party responds, they know it is coming to you.

Written by Act Data Services, Inc. 1-800-ACT-DATA. Grow and scale your business efficiently with the Act Data web portal, a great alternative to ASN software.

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