Business success is not always guaranteed. However, you can increase the odds by making sure that your business runs efficiently.
Running a business efficiently means that you streamline your business processes and get work done more quickly. Electronic data interchange (EDI) is one of those business solutions that you need to use. EDI is one of the easiest ways to ensure that documents are delivered safely and efficiently.
If you have never heard about EDI before, here’s a look at what it is and how it can benefit your business.
What Is EDI?
Electronic data interchange refers to the exchange of business documents between computers. Typically, the documents exchanged are shipping notices, invoices, and purchasing orders. While these are the most popular documents, they are not the only ones sent via EDI.
EDI reduces the need for manual processes such as phone calls, paper communication, and fax. EDI is used by retailers, distributors, and manufacturers to send documents worldwide on computer networks.
How Does Electronic Data Interchange Work?
First, you must store all your company data on an Enterprise Resource Planning (ERP) system. You may choose to store billing information, shipping information, invoices, and purchase orders on your ERP system.
Once you have an ERP system loaded with information, you can use an electronic data interchange solution to integrate with your ERP system.
The EDI solution will use the information it gathers from your ERP system to create documents that you will need when doing business with other companies. You can learn more about the process by researching which EDI solutions are the most popular.
What are the Benefits of Using EDI
When you use EDI solutions you will no longer be at the mercy of manual errors. An EDI solution will do automatic transactions.
It achieves this by creating a communication network between all the systems that are in a supply chain. There will be no delays between you and your suppliers or manufacturers simply because you have a difference in time zone.
You will no longer need to have employees fax or send over your documents via email or courier. All this means that you will save a lot of time and the more time you save the quicker things will get done.
You will enjoy greater document security when you use an EDI solution. Your EDI will generate invoices, shipment reports, and even sale orders quickly and safely. Nothing will be lost or tampered with during this electronic process.
EDI ensures that there are electronic confirmations so that you know that your documents have been received by your manufacturers and suppliers. This helps to reduce a lot of confusion and brings more transparency to the relationship you have with your business partners.
Grow Your Business
When you have an electronic data interchange system in place at your business, you have more time to focus on growing your business. You no longer have to worry about all the details that come with having to deal with documents manually.
You will be able to channel the company’s resources into other areas and this will help to scale your business. If you would like more business tips, please visit the business section of our website.