What is EDI Order Processing?
EDI order processing is the consecutive workflow of the purchase order cycle by using an EDI software platform. EDI order processing is a shorter cycle as compared to conventional and paper-based processes. Because the traditional process demands manual intervention.
Here, we are mentioning how an order processing system used to work.
- A buyer needs to purchase a service or good.
- The automated EDI system (used by the buyer) creates an EDI version of a purchase order for the product.
- Then it sends the order to the supplier.
- The supplier’s order management solution grasps the order in its own systems.
- This order management solution then creates an acknowledgement and an invoice.
- Then, the supplier’s EDI solution provider communicates both documents to the buyer to confirm the reception of the purchase order
- Finally, it provides a receipt for the order.
The Value of An Automated EDI Order Processing
An automated EDI order processing plays an imperative role in retailers, suppliers, carriers, and shippers. This is also less tiresome, accurate, and faster as compared to manual order processing.
Many companies often don’t know that EDI order processing and successful eCommerce initiatives are inter-linked. Multinational companies are rapidly migrating to the new normal to stay competitive in the post covid scenario. Now, EDI order processing is supporting end-to-end visibility across such mission-critical business processes as Order-to-Cash, Procure-to-Pay, or Load Tender-to-Invoice.
But why do you need that visibility? Let’s unravel it.
If you can’t process orders for customers, suppliers, carriers, or shippers efficiently, you may lose the competition. If your ordering process is very slow and error-prone, your rivals will certainly surpass you.
Last year a survey was conducted and nearly 88% of companies claimed that they lost orders, and more than half said they lost more orders in 2020 than in the previous year. 25% said they really don’t know how many orders they are losing each day. Lost orders will not only tarnish your reputation but also impact adversely on your profit. According to the same survey, 74% of companies claimed that they lost more revenue due to integration issues in 2020 than in 2019, with nearly 10% losing one million dollars or more. So, automating your EDI order process will help you to manage everything in a hassle-free way and it also retains your customers.
How to Choose The Best EDI Order Processing For Your Business?
If you are planning for an EDI order automation solution, don’t go for a fragmentary approach that only takes care of individual parts like your EDI Purchase Order process, or your invoices, or shipping orders. Rather, you can go for a bigger picture. Before employing an EDI order processing solution, consider the below-mentioned things.
Can You Help Us in Enhancing Our Customer Experience?
Customer experience is the utmost thing in this digital world. Every company is planning and changing its digital strategies so that it can meet the customers’ ever-changing expectations. That’s why you should go for a flexible integration solution that gives your supply chain system adaptability and agility. If you still prefer manual order processing, then it may lead to lost orders, lost revenue, or worse, may break your relationship with your customers.
Can You Help Us Do Business Faster and Improve Our Scalability?
EDI won’t alone be sufficient enough to improve your scalability. You need both API and integration workflows equally to enhance your scalability. You need an integration platform that puts you in the driver’s seat, helps your business to scale up so that you can match up with a multi-dimensional company.
Can You Get Me The Visibility Required to Forestall Supply Chain Disruption?
Only an integrated approach can connect the intricate constellation of internal and external systems of your business. And will offer you a concrete solution that will improve your supply chain system. If you have clear visibility and control, then whenever disruption hits or a business change is required, your overall integration solution (including its EDI order processing aspects) can easily accommodate that change.
Did you plan to start your EDI order processing journey? If yes, consult with Hubbroker.
Hubbroker is a leading company that offers EDI order processing including purchase order automation, sales order automation, and EDI order automation. To know more, please visit the official website of Hubbroker.