The reason EDI is used across countless industries and in companies of different sizes is that it can offer a range of benefits that can make a big difference in how a company operates.
The following outlines several key benefits of EDI.
Increase Efficiency
Automating order processing can offer a huge boost in operational efficiency, especially if you’re sending out dozens or hundreds of documents every day. EDI can be very effective at handling orders, invoicing, shipping, inventory, refunds, cancellations, and a variety of other business documents that need to be promptly shared with partners.
In the end, this means not just less time required and resources used on your end, but also shorter turnaround times, which can improve your customer experience and help you gain an edge over your competitors.
Avoid Mistakes
Given the high costs associated with documentation errors, EDI’s role in automating document handling is a significant advantage. This automation not only streamlines processes but also enhances accuracy across various operations.
Once set up, the system can work on autopilot, requiring little to no oversight. And if you’re using an Enterprise Resource Planning (ERP) solution like ApparelMagic, you can even integrate it with a proven EDI solution to open up new partnership opportunities and automate processes.
Reduce Costs
Although EDI solutions require an investment, they can usually help reduce costs in the long run, especially when the volume of documents sent increases. That’s because EDI helps eliminate manual and time-consuming tasks related to sharing documents that are unavoidable without a reliable and automated method for sharing documents.
For example, some businesses that don’t use EDI still send their invoices, and purchase orders via physical mail or fax. That creates additional expenses with every document sent, not to mention the inconvenient process. Even emailing the documents can take a lot of time, with manual data entry, sending, and formatting creating many opportunities for errors to occur.
Better Trading Partners
Having access to the best suppliers, retailers, and service providers like 3PL is a huge part of success. By having the right partners, you can propel your business growth and gain an edge over the competition, as it can determine your place in the market and your ability to generate a consistent stream of revenue while providing a good experience for your customers.
But one of the more common issues when working with large partners like big retail chains or 3PL providers is having to integrate with their systems. Companies that use manual or outdated methods for sharing documents will have a harder time forging new partnerships. In fact, in most cases, you will need to use an EDI solution that allows sending documents safely, quickly, and in a consistent format.
Previous chapter