EDI (Electronic Data Interchange) has been around for more than 50 years and is the gold standard for electronic document exchange between organizations across every industry. The reason for that is speed and accuracy with which the whole process operates when run with EDI. It is imperative for you to know how EDI improves customer experience and significantly lowers costs.
You need to understand that EDI should not just be used as a tool and brought in (as a part of your internal systems) once your company is mandated to do EDI by your trading partners but when you are ready to scale, you should implement it as a part of your business strategy. EDI can open many doors for you and gives a foot in the door for a buyer that you may have not dreamed of.
Here’s what you need to know about the real benefits and advantages of EDI:
- Increased Quantity of Orders and Revenue
EDI plays an instrumental role in strengthening the relationship with retailers and suppliers by managing document exchange efficiently and quickens the EDI order processing than a paper-based processing with reliability. As a result of which, there is trust built between the entities if you hire the right resources (EDI software and talent) to keep the process running smoothly. You are more likely to get more orders from your buyers or retailers and more business. More business means more revenue and a good reputation for your brand in the market.
- Reduced Time and Money Spent on Overall Processing
- Serves as a Marketing Tool for Business Expansion
When you first become ‘EDI capable’ which means you have an EDI software and you have already on-boarded a trading partner on your EDI software, that’s a great sign for other trading partners. This capability shows that you are ‘ready’ to transact with others too. When you are in a position to start doing business with others in the market, you stand a better chance and are given a higher priority over others who are not ‘EDI capable’. Therefore, having EDI as a part of your growth strategy as you scale is one of the best decisions you can even make for your business.
- Reduced Errors
- Increased Business Efficiency and Performance
- Enhanced Visibility into Overall Process
- Paperless and environmental friendly
The emergence of EDI as a software has eliminated paper use because it is all electronic transmission. There is no fax or mail required to send information from one entity to another. Like many other organizations promoting paperless transactions in every industry, EDI along with APIs as technologies are at the forefront of providing an environment friendly solution.