EDI stands for Electronic Data Interchange and refers to the transferring of business data electronically from one source to another in a standard format. Some of the common documents that can be transferred via EDI software include purchase orders, invoices and advance ship notices.
How can EDI software benefit your business?
Do you currently use manual methods to send documents? Do you feel that your time could be spent elsewhere running your business? Research has shown that automating paper-based tasks frees staff to concentrate on higher-value tasks and that 50% savings on human resources can be made from the use of an EDI system.
Other benefits include:
- Accuracy: If you use paper for your invoices, often as much as 5% of the data on it could be inaccurate. This can lead to a number of problems, including disagreements with your suppliers or customers over the cost of your products or with your stock control processes.
- Cost effective: As well as the savings detailed above, according to a 2010 GS1 report, EDI can save businesses at least £14 per order, £8.50 per invoice and £12 per order using a despatch advice. This is money that could be invested elsewhere in your business.
- It’s faster: EDI software can significantly increase the speed in which you can send documents. This can reduce lead times and speed up payments between your suppliers and customers.
- Real time visibility: With EDI software you can get real time visibility of your transactions, so you can make instant decisions and respond to the ever changing demands of your customers.
What should you be looking for in an EDI system?
You should consider software that is:
- Designed for the distributive trades
- Fully integrated with other business functions such as CRM and stock control
- Quick to deploy and easy to support
- Configured to provide high levels of data integrity and data accuracy
Once implemented, you will wonder how you managed to run your business without it.
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