21st century is the era of technology and automation. Almost everything that we see today is run electronically. Electronic Data Interchange is a computer to computer type of exchange of business documents within two business partners. The documents that are exchanged between the business partners are present in electronic form which have now taken over the conventional paper based documents.
Benefits of Electronic Data Interchange
Electronic data interchange or EDIs are the new approach to documentation. They are recommended by a number of EDI software consultants due to the numerous benefits associated with it. Mentioned below are all the benefits associated with the usage of EDI software:
1. EDI is cost effective
There are innumerable benefits associated with the usage of EDI instead of paper based documentation including saving a lot of money that otherwise gets spent in paper based documents. As it eliminates the need for paper, postage, document retrieval, printing, storage and all other aspects associated with paper based documents, it lowers the overall cost by a factor of 35%.
2. Accuracy and Speed
Speed is the major issue when it comes to exchange of documents. EDI has been known to speed up the business cycle to almost 61 %. Unlike paper documents that take weeks or days to reach the recipient, EDI can be exchanged in minutes. Also, EDI improves the overall quality of the data and reduces the level of the errors to about 30-40%. EDI reduces errors and time consumed in understanding bad and illegible handwriting and reduces the overall order to cash cycle upto 20% as it improves the businesses and relationships among trading partners.
3. Enhancement to business efficiency
As EDI eliminates the need of spending hours on the paperwork, it allows the workforce to focus on other productive tools and software. This helps in directing the focus at higher valued tasks. As the work becomes error free, there are less instances that require rework or any such procedures. It improves the efficiency of work by ensuring that the critical data relating to business is sent across at the appropriate time. As there is an improved workflow and a decline in the order to cash cycles, it benefits the sellers majorly. It shortens the order delivering as well as the processing time and can help in reducing the inventory levels of the particular organization.
4. EDI benefits the strategic business levels
According to most EDI software consultants, EDI helps in enabling a faster decision making and improves the process of responding to change in the market. The business becomes a demand driven business instead of a supply driven business. It also enhances the product delivery and centralizes the business language which is common to all. EDI also replaces the paper based work with electronic one it promotes the presence of a corporate social responsibility.
Almost every enterprise has loads and loads of work to be done. Electronic data interchange software is one such software which is sure to save a lot of your time and money. It is highly resourceful and is the best choice of software for your business. If you too are a businessman with an organisation that needs to be better streamlined, then relying on EDI software is the best option for you.