business-architecture

By integrating your services with EDI companies, you will be able to access a wealth of benefits. Exchanging information through a computer to computer solution is far more cost effective than handling pieces of paper. There have been a number of studies that showed that the manual processing of a single order that this paper based can cost $70 at least comma compared to less than $1 through an EDI process.

The Benefits of EDI Companies at a Glance

Very simply put, you gain 3p advantages by working with an EDI company. Those are:

  1.  That you can save on labor time.
  2.  That you will significantly reduced the number of human errors because everything is done through computer systems.
  3.  That all your business transactions will move much quicker.

An Overview of EDI Benefits

Essentially, through EDI, you will become more efficient and more cost effective. The best way to understand this is through an example. Presume that a business wishes to purchase a number of items, for which they will produce a purchase order. This has to be printed and sent to the manufacturer. When the manufacturer receives the purchase order, they type it into their system. This then sends a message to their inventory manager who will find the 365 items and then finally ship them. Then, and invoice is sent to the business, who will pay it once they have received it.

As you can see, there are quite a few steps involved that are done manually, which means they take time and which also means they could be in error. Each of the documents created in this example, being the purchase order, the acknowledgement, the dispatch note, the invoice, and payment receipt, can have errors on them. By automating the system, everything will go much quicker, records will be kept properly, and the risk of errors is significantly reduced.

For many businesses that have switched to EDI, the greatest benefit of these systems is that there is no longer any need to manually enter and often repeat several times any data that they received. The amount of time that this saves, meaning that employees can be deployed in far more important places, it’s fantastic. The result of this is that any  expenditure made on an EDI system is negligible and will provide a significant return on investment as well.

When EDI systems were first developed, they were quite expensive. While the return on investment could still be made and with ease, the reality is that the cost was so high that most businesses were incapable of purchasing the system. However, as demand for these systems has increased and technology has advanced, the operating and purchasing cost of these systems has reduced significantly. Today, most businesses cannot afford not to invest in an EDI system and watch their business and profit margins grow exponentially. With more and more consuming done online, these systems have become truly essential to the overall world of business and commerce.