EDI systems amalgamate customers, suppliers, business partners, factories, manufacturers and logistics, and build a robust partner relationship based on efficient work procedures, quicker information exchange, real-time control, enhanced productivity and stronger trade links.
What is EDI?
Electronic data interchange is the exchange of commercial and financial documents and data, including orders, order responses, dispatching advice documents, receiving advice documents, invoices, corrected invoices, remittance advice documents, etc. across various platforms in the form of standard electronic messages. Employing EDI systems extirpate human errors and strikingly lessens the data processing time.
One of the biggest advantages of EDI solutions is that they support almost any file format (EDIFACT, XML, PDF, ANSI, and many more). A company can choose any format that the EDI software converts when documents are sent to business partners.
How Does EDI Software Work?
By using EDI solutions, you can automatically transfer the documents and perform data exchange between companies. Now, no need to rewrite boring invoices or contracts manually. This data exchange is faster without any error.
Instead of wasting a humongous amount on outdated practices, you can implement EDI software that will help you exchange documents with your business partners quickly. Now, suppose, you create an order in your information system and send it in your own internal format. The order is then sent (without human effort) via the EDI software to the supplier. Now, the original format is being converted to the supplier’s format. The supplier accepts information in their own internal format, directly to their own EDI system. Thus, now both the company and supplier have the same order as per the required format.
The markets are flooded with a plethora of EDI solutions providers that have the appropriate skill and proficiency to develop a dedicated software solution as per your requirements. If you implement the software solutions from these companies, then your implemented EDI solutions will work flawlessly, and will also lessen the risk by running practical tests.
Benefits Of EDI Solutions
According to the research of Forrester, 82% of businesses wanted to minimize costs and exchange electronic documents with business partners. Nearly 81% were looking for real-time business process visibility, and 75% emphasized enhanced business agility. Furthermore, 74% of companies claimed that EDI helps them to make better solutions for supporting compliance and risk management for B2B exchanges. Let’s take a look at some of the prime benefits of EDI solutions.
Save A Lot Of Time
Since in this process, the conversion and data exchanged are performed automatically, this saves a lot of time for the companies. Now, document exchange is quicker as compared to conventional methods like mail. Just search your database for specific goods at any time, and then, place an order and receive the confirmation immediately. Now, there will be no delays because of different time zones, no need to wait for the concerned person to talk with your company, no discussions or error rectification. The final agreements will be done within a few minutes. Moreover, with EDI solutions, transactions happen in minutes instead of weeks, and you don’t need to depend on the postal service or courier companies to conclude them.
A report supported by a reputed data consulting firm claimed that manually processing a paper-based order can cost $70, on the other hand, processing an EDI order costs nearly $1. This means, in the long run, EDI software will help you in saving a lot of money. Exchanging e-documents not only enhances the speed and visibility of transactions, but also minimizes the amount of money you need to invest in paper, printing, copying, filing, storage, postage, and manpower.
Minimum Risks Of Errors
By minimizing human errors (improper handwriting, lost emails, typo mistakes, misunderstanding on the phone), EDI solutions enhance data quality. Since everything is managed digitally, now, you don’t need to copy data from paper documents to the system.
Strength Business Relation
Since EDI software solutions are widely accepted by the companies, hence, you will not lose the competition. By implementing EDI solutions, you can offer better customer services and strengthen your relationship with your business partners. For small businesses, EDI ensures guaranteed success and growth. By replacing manual work with digital, you are freeing your employees who can focus on other works of the organization.
Secure And Real-Time Control
Traditional methods of data exchanging are not 100 % secure. With EDI solutions, you can assure that all your documents will reach the receiver safely. Moreover, since you can track and check the system who has viewed and modified files in your database. Now, you can get information in real-time which leads to faster decision-making and responsiveness.
Shorter Delivery Time
Since everything is managed electronically, the order processing and delivery time will be reduced. Now, organizations can reduce their inventory levels and minimize freight costs.
Shifting to EDI solutions will drastically lessen your use of paper, ink, and other office supplies. Thus, less amount of trash is produced by your company.
HubBroker offers EDI solutions including Microsoft dynamic 365, PDF2XML integration, e-commerce integration, and many more. By opting for invoice automation and invoice processing software, you can streamline your accounts and invoice process.
To know more, please visit the official website of HubBroker.