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EDI Integration – The Essential Business Tool

EDI Integration

EDI integration might just be the tool that you have never heard of. Yet it is tirelessly working across millions of businesses throughout the world at every single moment.

Without it? Well, businesses would be working longer hours, making mistakes and fulfilling orders with far less efficiency.

What is EDI Integration?

At a basic level, you can imagine it as 1-click ordering between businesses. Only once you understand everything that it coordinates, you will see that it is anything but simple.

EDI solutions allow computers from different businesses to communicate with each other in a secure, automated and extremely quick manner. By creating an EDI workflow between to businesses, it automatically:

  • Establishes protocols, documents, transactions and endpoints for data exchange
  • Converts data into your own back-end formats for company use

Sounds easy right? It can set up a “conversation” between businesses that allows for near instantaneous data exchange in an understandable, secure manner.

What Does EDI Integration Cover?

Well, anything your business requires really. It is essentially a way to share business documents between systems in an understandable format. The most common documents transferred in an EDI workflow tend to consist of:

  • Purchase orders
  • Invoices
  • Shipment notifications
  • Payment documents
  • Inventory

 

As the majority of B2B transactions are done online, it makes sense for big businesses to employ EDI solutions within their business. 

The Difference Between Email and EDI

Let’s paint a picture to begin with. If a buyer orders a product, the order process goes through multiple steps in order to complete the transaction.

Without EDI Integration

Of course this process can be completely entirely manually. With employees on either side creating emails and sending back and forth.

But in that situation both sides have the danger of several things.

  • Human error
  • Inconsistent formats – ie. date DD/MM/YYYY or MM/DD/YYYY
  • Numerical abnormalities – ie. different decimal places
  • Formatting errors – ie. incompatible computer programs

With an EDI integration, the process looks a little like this…

Advantages of EDI Integration

Reduced Costs

Every print, every copy and every envelope costs money. Bearing in mind that every business must maintain multiple copies of all transactional documents, these costs add up. 

All of these costs are heavily reduced thanks to EDI integration, and this is just one of many strategies designed to save money and build growth!

Data Accuracy

EDI solutions remove the need for manual data entry.

Manual data entry is the number one cause of errors in business. By removing this part of the business cycle and allowing the EDI to take care of it, all data is significantly less prone to error.

Faster Business

Let’s not wait 3-4 business days to send business documents. Even an exchange of emails can take a few hours (how often have you sat at your inbox, refreshing the page while you wait for an important email?)

With EDI it is almost instantaneous.

Improves Productivity

EDI means that you no longer have to rely on the interns to finish the drudge work. With EDI, your employees no longer have to fill-out (and double or triple-check) data entry.

Instead, your employees can now focus on committing more to the vital processes that your company will benefit from more.

Partner Analytics

The right EDI integration provides you not only with compliance, and decision-making, but also analytics.

This means that by reviewing your EDI partners, you can calculate and view how each one is affecting your business.

Why is EDI Integration Necessary?

Because it is 2021. Scrolling on a phone app is now the equivalent of going shopping for the average customer. For B2B processes between companies – eCommerce is essential.

It is quicker, it is cleaner and it is far easier.

Once you begin to use EDI integration the extended possibilities begin to reveal themselves. If you can make full use of the automation processes and analytical results from your EDI solution – then your business will reap the rewards.

The Best EDI Integration

The best EDI solution is one that not only achieves near-instantaneous, secure document exchange with multiple businesses, but does so with automatic compliance to avoid complications with different systems.

It must also include comprehensive reporting and analysis features so that any business can make the most important financial decisions with ease.

Luckily we have you covered.

Not only does our EDI solution provide all of this and more – it is also fully prepared to scale up with your business. With the benefits of EDI you will grow your business and have a tool that is fully prepared to handle your expanding fortunes.

Get in touch with a member of our team today to find out more about our EDI solution and how exactly it can help your business scale up! Or you can scour our resources page to find the latest business guides and advice!

 

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