Electronic Document Interchange Pt 2: What are the benefits of EDI?


Electronic Data Interchange (EDI) is a technology that allows businesses to exchange electronic documents with each other in a standardized format.

5 Key benefits of using EDI are:

  1. Increased efficiency: Using an EDI can streamline business processes by automating the exchange of documents, such as the receiving and processing of Purchase Orders, Supplier Invoices, and shipping notifications. This can save time and reduce the need for manual data entry.

  2. Improved accuracy: They vastly reduce the risk of errors by automating the transfer of data and eliminating the need for manual data entry.

  3. Reduced costs: EDI's can help businesses save costs by reducing the need for printing, mailing, and handling paper documents. It can also help businesses save on transaction fees, as EDI transactions often cost less than traditional methods.

  4. Enhanced security: EDI can provide a secure method of exchanging sensitive data as the documents are typically transferred over a secure network.

  5. Improved supply chain management: EDI can help businesses track orders, inventory, and shipping status in real-time, which can improve supply chain efficiency, increase on time deliveriesand reduce the risk of delays or errors.


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