Electronic Data Interchange (EDI) allows companies and their vendors, service providers, and clients to share business documents electronically in a standardized format. Its vast adaptability across several industries in the recent years goes out to show how much companies rely on EDI. Electronic Data Interchange efficiently offers the trifecta of being cost and resource effective, not requiring human intervention and being environmentally friendly. It is cost effective because repetitive processes like purchasing, printing and delivering of paper based documents are completely eliminated which would otherwise be time, cost and resource intensive. In the long term, EDI softwares also allows a company to be environmentally accountable by drastically reducing its carbon footprint.
When an EDI solution is being used in the different stages of the supply chain process, it can facilitate the sending and receiving of inter and intra departmental documents. This can effectively improve the efficiency of the organization by transforming how business processes are carried out. By being able to automate the process of creation, distribution and acknowledgement of bills, inventory documents, shipping documents and invoices, the major load on your organization’s resources is completely removed.
In the supply chain industry, the following documents can be created by EDI:
While EDI has several benefits across industries while performing the same actions, it's specific benefits to the supply chain industry is significant and hard to dismiss especially now that several companies have adopted EDI into their day-to-day operations.
Zero-Latency Exchange of Documents
When transactions between different units becomes instant, the rate at which business processes speed up can be phenomenal. This, in turn, allows you and your team to capitalize on freed-up time to focus on general business improvement.
High-end EDI softwares like IQDox, allow companies to automate the entire process of creation and distribution of electronic documents by defining the standard in which the documents are supposed to be created. This means that, once the initial process definition and set up are complete, no amount of human intervention is required afterwards. Therefore, the entire process becomes much more accurate. This allows companies to save the cost of human made errors. For example, you will never again have to double and triple check purchase orders which would otherwise be required to be filled by a person, subjecting it to manual errors.
Lower Costs and More Time Efficient
Imagine how businesses used to communicate with each other before emails. Invoices had to be manually typed out and mailed through postal services. The client would also have to individually process the invoices and then get back to the service provider. This entire process would have taken almost a week. Then came emails, which reduced the time taken to complete the entire process drastically but still had its drawbacks. Companies would still have to manually create the documents and ensure that human errors have not entered the equation.
With EDI, companies no longer have to worry about any of those things. An efficient EDI solution would allow businesses to communicate electronically with each other and process requests instantly, without any human error. It is also cost effective as it eliminates the need for you to employ any resources towards processing, auditing and checking documents.
Greener Business Potential
The whole world is moving towards reversing the damage that has been inflicted on our planet over the last several decades. In that effort, several large companies are moving towards becoming paperless businesses and other companies are looking to follow suit. To make your contribution towards this movement without having to compromise on the effectiveness of communication, choose an efficient EDI software which lets you do it all.
Better Relationships and Sales
Streamlining the communication between you and your business partners can improve mutual trust and bring about better sales performance. With EDI, business processing cycles can become faster and smoother, making you a more reliable partner. By choosing a superior EDI service, you can definitely look to give better services to your clients.
Streamlined Inventory Management
For the manufacturing sector, supply chain plays a crucial role in maintaining the optimum inventory levels for production and supply. EDI drastically improves the efforts with which supply chain executives can do this. By always keeping track of what is in stock and what isn’t, smart EDI softwares can alert you in case of shortages or over storage. Using EDI, you can use your inventory space more efficiently and transform the way logistics is controlled.
By understanding how EDI can help you stay ahead of your competitors, you can, without a second thought, commit your organization to using EDI to transform how your operations are run.
With this, we would like to introduce you to IQDox, the most reliable EDI software which can provide you with every advantage that we have highlighted. IQDox is an EDI software with a difference - with an easy-to-use interface, IQDox does the heavy lifting for you. By making a switch to an EDI software like IQDox, your supply chain management efforts will reach a whole new level of efficiency.