What is EDI and it's benefits?

Electronic Data Interchange (EDI):

     EDI is the computer-to-computer exchange of business documents in a standard electronic format between business partners.

     By moving from a paper-based exchange of business document to one that is electronic, businesses enjoy major benefits such as reduced cost, increased processing speed, reduced errors and improved relationships with business partners.

Benefits of EDI:

• Expenses associated with paper, printing, reproduction, storage, filing, postage and document retrieval are all reduced or eliminated when you switch to EDI transactions, lowering your transaction costs by at least 35%.
• A major electronics manufacturer calculates the cost of processing an order manually at $38 compared to just $1.35 for an order processed using EDI.
• Errors due to illegible faxes, lost orders or incorrectly taken phone orders are eliminated, saving your staff valuable time from handling data disputes EDI can speed up your business cycles by 61%. Exchange transactions in minutes instead of the days or weeks of wait time from the postal service.
• Improves data quality, delivering at least a 30-40% reduction in transactions with errors-eliminating errors from illegible handwriting, lost faxes/mail and keying and re-keying errors.
• Using EDI can reduce the order-to-cash cycle time by more than 20%, improving business partner transactions and relationships.
• Automating paper-based tasks allows your staff to concentrate on higher-value tasks and provides them with the tools to be more productive.
• Quick processing of accurate business documents leads to less re-working of orders, fewer stock outs and fewer cancelled orders.
• Automating the exchange of data between applications across a supply chain can ensure that business-critical data is sent on time and can be tracked in real time. Sellers benefit from improved cash flow and reduced order-to-cash cycles.

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Milan Tomic

Hi. I’m Designer of Blog Magic. I’m CEO/Founder of ThemeXpose. I’m Creative Art Director, Web Designer, UI/UX Designer, Interaction Designer, Industrial Designer, Web Developer, Business Enthusiast, StartUp Enthusiast, Speaker, Writer and Photographer. Inspired to make things looks better.

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