What Is Electronic Data Interchange?

Electronic data interchange EDI Solution

Electronic Data Interchange is the driving force behind the largest powerhouses of B2B companies today. However, it is no longer just for big businesses. In fact, even SMEs now have access to EDI and all its benefits, including:

  • Faster Commerce
  • Cost Saving
  • Greater Data Accuracy
  • Improved Productivity

And far more!

With all of these benefits now available for SMEs – it’s no surprise why more and more companies are looking into Electronic Data Interchange. Let’s break it down to the basics and explain exactly what is is.

What Is Electronic Data Interchange?

The Benefits Of EDI Software

The Myths of EDI Software

Find The Right EDI Software

business software

What Is Electronic Data Interchange Software?

In today’s world of varied technology, things can be complicated. At university, the biggest problem for assignments was figuring out whether or not you could use a pages or a docx format for your dissertation.

But when it comes to B2B companies there is a whole smorgasbord of technological options available.

Unlike at university, in business there is no room for confusion. You need to process orders, collate invoices, stay up-to-date on inventory and manage shipping notifications. There is simply no time or room for miscommunication.

This is where Electronic Data Interchange comes in.

In layman’s terms Electronic Data Interchange (or EDI for short) sets up a “conversation” between two endpoints, regardless of the systems being used. This means that between businesses it:

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

To summarise, with EDI software you can change this sort of interaction:

Without EDI Integration

Into this. 

What Are The Benefits Of Electronic Data Interchange Software

When we say that EDI Integration is simply a “conversation” between two businesses filling out an order, it sounds quite simple doesn’t it? Just one of the many top eCommerce strategies around.

However this brings about an enormous amount of benefits for B2B and smaller businesses. So let’s take a look at exactly what EDI can offer you.

Faster Commerce

Integrated EDI completely revamps your entire supply chain. As it processes information between companies almost instantaneously, your business immediately becomes more efficient.

No more back-and-forth emails and follow-up messages, no tedious manual input and zero last-minute deadlines to confirm with partners. In fact, Matson Logistics actually lowered their transaction costs by 35% by using EDI alone!

Just pure, automated information across your business dealings. 

Cost Saving

Every business, from large chains to small independents, has administrative costs. Paper, printing, postage, storage, filing, document management etc.

With Electronic Data Interchange software you immediately reduce your overhead and administrative, resource and maintenance costs.

Greater Data Accuracy

Electronic Data Interchange removes the need for manual data entry immediately. This means that human fallibility is removed, but it doesn’t stop there.

Even if your employees print out invoices and shipping orders perfectly, there are still some data points that can cause serious issues between B2B companies. These include:

    • Inconsistent Formats 
      • Dates as DD/MM/YYYY or MM/DD/YYYY)
    • Numerical Disagreements 
      • Values are in alternate decimal places, or use commas instead of full-stops
    • Formatting Errors
      • Disparate technologies now work as one application network

 With Electronic Data Interchange – these are a problem of the past!

EDI Integration

Improved Productivity

Without the need for manual data entry (and of course double-checking for errors) suddenly your employees have a great deal of extra time on their hands.

Now your team can invest those hours into other, more vital aspects of your business without dealing with the mundane, time-consuming tasks that have otherwise preoccupied their daily work!

The Myths of Electronic Data Interchange Software

The truth is – there are none. Only advantages. 

However, you may have heard some myths around Electronic Data Interchange software, so we will clear those up for you now.

Myth #1 “It requires a huge amount of coding experience and a large team to support”

Truth: Fully integrated EDI solutions do not require this. These tools are designed to make businesses run smoother and actually provide much needed relief for your workforce!

Myth #2: “To scale up your business you need to constantly change your EDI solution”

Truth: The right EDI solution is fully scalable with your business. As your business grows, so too does the EDI automatically adapt to your needs.

Myth #3 No company needs EDI software, it is outdated!

Truth: Tell that to the 60-85% of businesses who are using and adopting EDI solutions.

Find The Right Electronic Data Interchange Software

Your business stands to benefit greatly from an EDI solution. With the amount of advantages on offer to both B2B and small businesses, you need a solution that not only integrates easily, but is flexible and will scale up as your business grows.

Not only that, but you also need one that provides top-level security for all your communications!

That is why you need our EDI solution.

It is one of our top-performing products that is ready to help businesses across the world to make the most out of their company. Say goodbye to data errors, delays and miscommunications in your day-to-day business endeavours and push forward to scale up your business in no time at all!

Simply get in touch with a member of our team today to discuss your needs and we are happy to help. Don’t forget to check out our resources to find other guides and tips for your eCommerce business!

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