Electronic data interchange is the electronic movement of data between or within an organization in a computer retrievable data format that allows the transfer of data from one location to another without rekeying. It is based on agreed message standards, and it can be done without the need for any human intervention. Different EDI systems have different tools, but there are some very common features in all the Electronic Data Interchange solution. Nowadays, most of the businesses are using EDI solutions because of the long list of benefits offered by this impeccable data interchange solution. So, let’s go through the details and features of EDI and EDI solutions.
Benefits of EDI
- Speed- One of the most highlighted benefits of EDI is the increased speed of transactions. If a business is using paper documents, then it may take it days to transport from one location to another. In addition to this, manual data interchange is a very time-consuming process as it involves processes like keying and filing. Through EDI, all such hassles are wiped out, and you are able to boost the speed of transactions. EDI boost your transaction speed by 61%.
- Accuracy – Errors are a part of human nature. That is why the manual data interchange process is vulnerable to errors. But, with EDI, you can attain maximum accuracy, and that’s why it is preferred over traditional data interchange solution. EDI solution wipes out keying and rekeying errors, illegible handwriting, and incorrect document handling.
- Business efficiency- With minimized human errors, firms are able to harness the advantages of an increased level of efficiency. Instead of focusing on mental and tedious tasks, employees can invest more time in jobs with a higher value. It has been seen that EDI can improve a business customer’s relationship because of the quicker delivery of goods and services.
- Cost-effective- Another significant advantage of EDI is cost-effectiveness. By using EDI, organizations’ have witnessed a 35% decrease in expenses related to printing, storing, processing, papers, reproduction and documents retrieval.
Common features of EDI solution
- Support for EDI standard
You should know that the influx of EDI standards is not new as it has been happening for almost 50 years. In addition to this, EDI document formats have appeared to meet the requirements of specific industries like RosettaNet in High Tech and PEPPOL in European Public Sector. An ideal EDI solution should be able to provide support for all the EDI standards.
- Support for EDI document types
The initial objective of EDI was limited to invoices and EDI payments only; it quickly addressed the business documents that underpin other key business processes. There are different types of EDI documents like purchase orders, invoices, acknowledgement, shipping notices, financial statements, products and sales catalogues. A good EDI solution offers all the EDI documents.
You should know that there are hundreds of EDI document types available. That is why it has become a necessity to have an Electronic Data Interchange solution services which provide maximum EDI documents.
- Support for communication protocols
The list of communication protocols supporting EDI transactions is very long. Some of the most common communication protocols are FTP, OFTP, HTTP, etc. If you don’t want any such hassle, then you should choose EDI solution that supports most of the communication protocols. It helps you to connect with all the trading partners easily.
EDI is one of the quickest and seamless ways of data integration for it minimizes not only manual workload but also reduces error. At the same time, it has also proved to be a cost effective solution for a firm. You should never miss analyzing an EDI solution against the features mentioned in this blog post.
However, if you want to reap the advantages of EDI solution, you should always go for an EDI managed service provider. Here at Data Integration Specialist, we offer remote EDI expert to either complement your existing EDI solution or to act as a remote EDI coordinator.