EDI is continuing to prove its value for businesses by reducing costs, improving speed, business efficiency, and accuracy. Most times, the biggest EDI benefits come at the strategic business level.
A recent study from Forrester proved that EDI is continuing to prove its worth as an electronic message data format. In fact, the research shows that the annual volume of EDI transactions around the globe exceeds 20 billion annually and is continuing to grow. If you are a buyer that handles several transactions, using EDI can help you save millions of dollars (or more) each year thanks to early payment discounts.
From just a financial perspective, there are impressive benefits offered by implementing EDI. When you can exchange documents electronically, it improves transaction speed along with visibility while reducing the amount of money spent on manual processes. While all this is true, cost savings are just one benefit offered by implementing and using EDI.
Find out some other benefits offered by EDI here.
Accuracy and Speed
EDI can help to speed up your business cycles by as much as 61 percent. With this in place, exchange transactions occur in minutes rather than days or weeks of wait time that occur when the postal service is used.
It also helps to improve data quality, helping to deliver at least a 30 to 40 percent reduction in transactional errors, eliminates the potential of errors because of illegible handwriting, re-keying errors, and lost mail or faxes. With EDI, you can also reduce the ord2er-to-cash time by over 20 percent. This helps to improve and solidify business partner relationships and transactions.
Improved Business Efficiency
When you automate your paper-based tasks it allows your employees to concentrate on the high-value tasks while providing them with the tools needed to achieve higher levels of productivity. Also, when business documents can be produced accurately and quickly, it results in the need for less re-working of orders, fewer canceled orders, and fewer stock-outs.
By automating data exchange of data between applications across any supply chain, you can feel confident business-critical data will be sent on time and can be tracked in real-time. As a seller, you can enjoy improved cash flow along with order-to-cash cycles. By shortening the order processing and overall delivery times, your organization can reduce its inventory levels.
Benefits at the Strategic Business Level
With EDI, you have real-time visibility into the status of any transaction. This helps improve decision-making speeds while improving responsiveness to the evolving customer and market demands. Perhaps the biggest benefit is the ability for businesses to use a business model driven by demand rather than supply.
But that’s not all. EDI helps to reduce lead times for new product delivery or enhancement and streamlines the ability your business has to enter new markets or territories.
Seek Help for All These Benefits and More
If you want to implement EDI in your organization, be sure to reach out to the professionals. They can ensure implementation is seamless and that your business experiences all the benefits here and more.