Benefits Of Electronic Data Interchange EDI

1. Article4: Datatrans-inc.com Benefits Of Electronic Data Interchange EDI Electronic data interchange (EDI) is the electronic interchange of business information using a systematized format; a process which allows one company to send information to another company electronically rather than through a paper trail. Organizations that conduct business electronically are called trading partners. These trading partners are free to use any method or procedures for the transmission of documents. EDI helps in streamlining the communication channel between these trading partners, making the entire exchange of documents and data electronic and helping businesses enjoy the advantages of online data exchange. Many business papers can be exchanged using electronic data interchange, but the two most common are purchase orders and invoices. Electronic data interchange proves its crucial business value by lowering the costs, improving speeds, accuracy level and business efficiency. The greatest benefits of EDI usually come at the strategic business level. Electronic data interchange has existed for more than 30 years and there are many EDI standards that companies follow to maintain seamless data exchange. It can be the transfer of structured data by the agreement of message standards, from one computer to another. Let’s check out some of the benefits that using EDI in your business can offer: Cost savings: •Expenses that are related to papers, reproduction, printing, storage, etc. are all reduced when you switch to EDI transactions by at least 35%. •Errors that come from unreadable faxes, lost orders or incorrectly taken phone orders are eliminated, saving your staff valuable time from handling data disputes. Speed and accuracy: •Your business cycle can be sped up by 61% with the help of EDI. Instead of waiting so much, you can exchange transactions in minutes instead of the days or weeks from the postal service. •EDI also improves the quality of data and delivery schedules with a reduction of at least 20% to 40% Increase in business efficiency: •Fast processing of precise business documents leads to less re-working of orders, fewer inventory run-outs and cancelled orders. •EDI decreases the delivery time and order processing. •EDI also automates the exchange of data between applications across a supply chain, which can ensure that business-critical data is sent on time and can be tracked in real time. Strategic business level:

2. Article4: Datatrans-inc.com •Enables real time visibility into transaction status. •Lessens the lead times for product improvements and new product delivery. •Promotes social responsibility and maintains by replacing the paper based processes with electronic alternatives. This will both save money and also reduce your carbon footprint. •EDI also streamlines your ability to enter new areas or markets. It also provides a common business language that smoothens the business partner that may be working and present anywhere in the world. Electronic Data Processing EDI improves transaction pace while decreasing the amount of money, which is spent, on manual processes. It is the standard for data exchange that retailers utilize to send business documents electronically like: purchase orders, invoices, payments, etc. Using it in your business will only prove to be beneficial. For more information, visit www.Datatrans-inc.com. ABOUT THE AUTHOR Gabriel Martin has written many articles and blogs about the EDI, e-commerce and data management solutions. He recommends DataTrans Solutions, Inc. for providing quality, timely, and accurate EDI and B2B outsourcing solutions for to its customers.