Web based EDI can be explained as follows. It is the online computer-to-computer exchange of business documents in a standard EDI document format between business partners. Businesses who take up EDI enjoy major benefits such as reduced cost, increased processing speed, reduced errors and improved relationships with business partners, so it’s a great opportunity to any 21st Century business to move from a paper-based exchange of business documents to EDI documents, and EDI transactions are processed much faster and with less human intervention, hence less chance of error. Also, the best EDI software and services can integrate into any MS systems such as ERP and SAGE platforms to assist in the end-to-end processing of key business documents.
One of the many and great reasons for the continued take up of EDI technology is its ability to co-ordinate business documents from many key business processes: EDI payments and EDI invoices, unlike the traditional paper variety, allow companies to process order information faster and indeed more accurately. And, it’s within EDI payments and EDI invoicing that the technology developed to include EDI shipping documents for instance, and aided good insights into global shipping transactions, warehouse operations and distribution centers.
EDI goes well beyond the exchange of organised data to companies to benefit from EDI transactions along their supply chain. EDI technology also allows of course has the function of secure file sharing – inc. Managed File Transfer – which can help sections of businesses, such as an engineering department to exchange to share large CAD files for example.
Electronic Data Interchange software and services indeed and as explained earlier hold many benefits for companies and businesses that get it right. The best EDI solutions can generate great and effective increases in performance while delivering improved accuracy in the transfer of important company information and records. With Automated processes, that can be optimized for full effect, direct from computer to computer, which can perform faster that the traditional manual processes – and with a pretty much measurably higher degree of accuracy.
Now that paper documents are being replaced by EDI transactions, electronic logs built into the processes can facilitate more easily and quickly, resulting in good EDI tracking and audit handling activity. It’s pretty simple that the enhanced transparency of information can help companies increase their knowledge to measure performance, which in turn can instigate improvements throughout their supply chain. The two main benefits of EDI include:
- Cost reduction
Printing, reproduction, storage, filing, postage and document retrieval are all expenses associated with traditional paper-based systems and these can all be reduced or omitted if businesses switch to the modern and more effective EDI transaction, which with some companies has lowered their production costs by up to 35%.
For example. In a recent report a major electronics manufacturer calculated that the cost of processing an order manually was $38 compared to the very low cost of just $1.35 for an EDI order.
- Time saved
Transfer and processing of EDI documents can take seconds or minutes, and not days like the traditional paper systems, hence this will gain time for the management team to focus on more important and pressing matters. Recent reports have suggested that EDI can speed your process up over 60% compared to traditional processes.