What Is EDI And How It Can Benefit Your Business?
Electronic data exchange (EDI) is the electronic exchange of business information between companies in a standardized format. Standard business processes allow information to be transferred from company to company electronically, not on paper. Business entities operating electronically are referred to as "trading partners".
Many business documents can be exchanged via EDI record system, but the two most common are purchase orders and invoices. Sincerely, these are two common documents that use EDI that can reduce time, resources, and the possibility of errors.
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What are the advantages of EDI?
Since electronic data exchange between systems is electronic, this leaves room for potential human error. When paper is involved in business processes, things can become illegible, lost, forgotten, misplaced, or forgotten in one go. EDI significantly improves data quality. An average reduction in transactions with an error of 30-40% is observed after using EDI.
Increase processing speed
Using an EDI solution can reduce the time your employees spend exchanging documents by enabling them to focus on higher-value tasks and giving them the tools to be more productive.
EDI eliminates various costs associated with standard business processes such as paper, printing, postage, faxing, storage, refilling, and more. Research has shown that EDI can help your company reduce your transaction fees by at least 35%.