Electronic Data Interchange or EDI is the most advanced way to interchange the data between the business partners. The exchange of data between buyer and supplier, usually consist of purchase orders, invoices, shipping documents, payment receipts, and other related documents.
With the advanced facility of EDI, the ease of virtual connectivity between the businesses has grown in manifolds. With no hassle and quick communication, the EDI offers a series of benefits to the suppliers and distributors.
The EDI has ensured the seamless flow of information, and advanced technology, it has opened up doors to various benefits that are listed here for you.
Business Advantages to Suppliers or Distributors
The EDI has developed a lot in the past few years. With the foundation of automated processing and hassle-free management, it improves the overall trading partners’ relationship and enhances overall productivity. With a multitude of benefits to suppliers and distributors, this has emerged as a proven means to better supply chain predictability. With this, let us have a look at the benefits EDI offers.
Reduced Paper Usage
The furthermost benefit of EDI is reduced paperwork. With the facility to process all the transactions online, the need for printing is quite minimal. Additional to minimized paper usage, it also leads to a reduction in the expenses related to storage, print, postage, mailing, and recycling.
Better Data Quality
Manual data entry is slow, and the chances of the clerical errors are high. With the usage of EDI, there is a proven reduction in data entry errors. The management of accounts receivables and payables also gets a lot streamlined. With the accurate data fed, the forecasting about the business prospects and trends can also be done.
With the real-time processing and data transfer, the timeline of communication and processing enhances too. With the elimination of the manual transfer and order processing, the time-lag of dealing shortens. The smooth dealing between the various trading partners involved in the business helps to open up new doors for better and profitable business opportunities.
The use of EDI shifted to offering better visibility of inventory. With everything available at one place and digitally accessible, it is quite easy to access the stock available at any point in time. With the quick and correct analysis of inventory, one can easily ensure that there is no instance where you have surplus or markdowns. With EDI automation, the check on the backorders can be ticked timely.
Reduced Turnaround Time
The businesses are considered to best when the request and order turnaround time is least. With the better business cycle and quick processing of records, the time lapses are reduced significantly. Compared to the time invested in manual processing, processing through the EDI automation, the time required reduces to just half. Time is the essence of business and order processing, which is taken due care in EDI automation.
With less paper usage and all data kept intact in digital mode, the security of the data transmitted increases. With the secured data sharing protocol and high-security standards, the digital movement of data between trading partners ensures the application of secured communication protocol to reduce data leakage and loss.
With a bunch of benefits and enhanced business practices under the EDI automation, the time taken by the staff to create and process the invoices manually is optimized a lot. Quick and efficient processing leads to better operational processes and efficiency.
Less of paper and more of efficiency is the concept on which EDI automation operates. With the migration from the paper-based to electronic mode of transactions, that reduces CO2 emissions and promotes corporate social responsibility, which is the need for today.
The Advantageous End
To stay on the peak in any business, it is a must to keep pace with the advances and technological up gradations that come in between. With the changing business environment, the need for a smoother and quicker communication cycle has also increased a lot. The most common benefits include:
- Exchange of business documents like invoices and receipts
- Transmission of data
- Better management of inventory and stock
- Error-free documentation
- Refined logistics information
- Self-populating order fulfillment
Modern EDI solutions are cloud-based, and with the open computing system, the simple and affordable implementation is sure to help you a great deal. Businesses with EDI implementation enjoy the benefits of better lead time, profitability, accuracy, and seamless processing. These are the utmost advantage to distributors or suppliers with added cost-savings.
With tremendous ways to increase the business and a bunch of benefits to suppliers or distributors; EDI has emerged as a boon for all the business units. With smooth processing and quick response channel, managing vendor relationship and customer service have benefited a lot.
In this regard, our CloudGen’s SmartEDI solution helps the customers to overcome many complex scenarios by reducing the implementation time, simplifying the setup task and enhancing the ease of use. We offer:
- Easy and Quick rollout of EDI project
- Fast track partner on-boarding
- Minimizes failed transactions
- Maximizes efficiency
- Reduces time required for manual setup and mapping
- Increases operational efficiency and cost savings
- Reduces EDI implementation time
- Elimination of manual errors
- Supports multiple standards
A well-established communication channel and seamless sharing of transactions and documents, EDI has emerged as a powerful tool with rich features for distributors and suppliers. Adopting it in business will act as a turnaround point, surely.