UncategorizedSupply Chain and EDI

October 23, 2020by CloudGen Admin

The Never-Ending Bonding

Combining EDI with the supply chain can transform a company’s productivity and visibility. Contemporary global commerce gets driven by their bonding. Trading partners who rely on electronic communication need proper techniques. Electronic Data Interchange (EDI) ensures standardization in this regard, while supply chain automation creates a reliable ecosystem for business productivity. These two critical processes of any commercial organization are brought together by innovative technological trends.

Benefits of EDI-Supply Chain Integration

Many companies cannot let go of their legacy IT systems. They struggle to integrate supply chain workflows with EDI. But once they do so, the benefits far outweigh the initial costs of automation and electronic integration. Primarily, their B2B data exchange becomes much more reliable.

The company’s procurement and cash order processes become efficient. Its shipping and logistic services perform much better. The company communicates effectively with trading partners and customers. It can also optimize deliveries and reduce expenses associated with compliance rules.

The business achieves service level metrics and satisfies the partners. Not only do the liabilities go down, but contracts get honored accurately and promptly. Digitization will also integrate applications and ensure reliable end-to-end data processing.

Positive Technology Trends

Emerging and established technologies are becoming more and more reliable. Their functionality and accuracy also deliver the required performance metrics. As a result, B2B data exchange and supply chain workflows become more efficient and productive. These following trends eliminate silo mentality and strengthen the bonds that create a productive business ecosystem.

Bringing together API and EDI

In the world of B2B communications, API and EDI were once the leading adversaries. APIs are lightweight and connect easily with databases, applications, and other systems. Whereas, EDI plays a significant role in achieving integration with external B2B systems of trading partners.

Modern companies changed track and chose complementarities. Yes, they treat EDI and API as equally significant technologies. They leverage the power and functional appeal of both to evolve superior communications. Businesses that seek expansion and growth follow this policy to the tee.

Integrating the two technologies ensures multiple advantages for a company. It can leverage the power of both without compromising data quality. Moreover, it can follow flexible approaches for integrating cloud storage platforms and legacy systems.

Consequently, there will be support for diverse applications in the ecosystem. These include cloud-based models like SaaS, AaaS, PaaS, etc. Moreover, scalability can also get factored into the solution at an early planning stage of the integration process. Scalability is an area where every business faces a series of challenges. In this demand-motivated market, the company’s ability to change its capacity regarding the demand is paramount.

Cloud expertise

Enterprise-level systems require robust IT infrastructure and consummate professionals. But the experts are not easy to come by. Thankfully, the emphasis on cloud computing solutions and EDI integration has been extreme and encouraging.

Skilled specialists who can handle emerging technologies are increasing in number. The IT pros can also handle legacy system integration. Moreover, these well-trained professionals can carry out business analysis and EDI data mapping.

They can design cloud-based solutions to generate superior business intelligence. They can also factor in partner requirements and analyze the latest trends, and they help the company achieve its targets by improving productivity and key performance metrics.

EDI modernization

EDI is revolving over the years into a refined and standard technology. It is not just about the digitization of invoices and purchase orders. The modern features do not stop with standardized data formats, either. They deliver secure, reliable, and conveniently governable data flows.

The data interchange and supply chain integration bond is also strengthening. Partner relationship management and business process consistency are becoming more efficient. There is support for ad hoc data flows and non-EDI to allow a degree of freedom and flexibility.

Today’s EDI can easily support mobile and web-based communications. It also offers diverse approaches, including VAN, FTP, Point-to-Point, or Direct data exchange. The B2B system is also optimizing to speed up logistic timelines. Moreover, it eliminates redundancy and non-compliance.

An example: Top-Class Online Marketplaces

Without a doubt, Amazon is the market leader in tech innovation. It evolved disruptive solutions and revolutionized the e-commerce business by combining EDI into the supply chain. Retail or online shopping experiences have also become more memorable. Amazon, in particular, transformed logistics, distribution, and supplier demands. Customer experience, competitive pricing, and reliable shipping have become paramount. And the trends suggest that real-time tracking and mobile support are here to stay. 


In summary, every modern company requires EDI- supply chain bonding. It requires a viable strategy to optimize business operations. But the integration process has to be secure, scalable, and reliable. Yes, marrying a legacy system to cloud service is not very easy for the project team.

But modern technologies are facilitating and speeding up this integration process. These developments augur well as data integrity gets enhanced. Besides, the complex workflows and business processes are becoming more streamlined, standardized, and even simplified to a certain extent.