Electronic Data Interchange or EDI is the standardised computer-to-computer exchange of information between partner entities (or EDI trading partners). Through EDI, partners can share vital information more efficiently and reduce human error. It’s faster and more secure than conventional modes of communication as it has little to no human intervention.
An EDI software is a tool that prepares and translates data to standard EDI format and then transfers it to other computers via Electronic Data Interchange. It contains built-in templates that create unified formats before moving them to another computer.
Just enter the information in the required fields, and the EDI software will generate the data automatically in the standard format. Companies often use EDI software to replace email or fax, which are more prone to inconsistencies and human errors.
How EDI Packages Work
An EDI software automates data exchanges by attaching itself to your existing Enterprise Resource Planning systems and creating standardised documents. It does this by getting the relevant data from your database and creating different templates according to the specific requirement.
Once you automate your data exchanges, you won’t have to waste time and resources on such a manual and repetitive task. EDI creates templates that suit your and your partner’s preferences and customises how you share vital information.
For example, shipping companies that regularly share shipping information with clients can create different formats with an EDI tool.
Companies can also create onboarding templates to welcome partners and give them a detailed walk-through of the entire process. And then, they can create another document that provides updates on where their shipments are and other pertinent details.
The Advantages of EDI
1. Enhance Efficiency in Your Operations
By minimising discrepancies and human errors and improving the virtual exchange process, your business can leverage the increased efficiency aspect and faster delivery of goods and services.
Furthermore, when you avoid tedious tasks and manual paperwork, your employees can focus on high-priority and more critical tasks that will be more productive and profitable for your company.
With EDI, order data will simply flow in and out of your accounting and ERP systems and improve your order processing, invoicing, packing and shipping process, as well as transaction tracking.
2. Lower Operational Expenditures
EDI also helps in cutting down your operating expenses such as resource, maintenance, and administrative expenses by as much as 30%. In addition, EDI can speed up your business cycle by up to 60%.
With EDI, complete transactions in minutes instead of days and weeks. It can also support a variety of business operations even on a limited staff capacity.
3. Improve Your Business Strategy
When you have a real-time visibility of all that’s happening in your business, you can strategise, decide, and respond quickly and efficiently. This will allow you to take advantage of market demands and fulfill customer needs ASAP.
4. Enhance Your Security
EDI uses encryption systems for all document exchanges and records transactions, which is an effective way to prevent fraud and evasion. The excellent security that EDI provides keeps your business safe from fraud.
Cin7 EDI Software Implementation
How you implement your EDI software plays a crucial role in pairing up data with your partners, staff, and team members. When you work with a top EDI platform, you can prevent any EDI implementation issue.
With Cin7, avoid the added costs, maintenance, and complexities of third-party EDI software providers. Cin7 offers a fast, efficient, and full-service EDI with its team of specialists that will handle your business’s technical requirements. Furthermore, they will build the two-way connection and conduct all compliance testings.
Automate your workflow and enjoy advanced messaging systems. Improve your EDI logistics operations with visibility into every order. It’s an EDI one-stop shop that will help your business achieve operational efficiencies and improve customer relationships with your 100% EDI compliance.
Get the Cin7 advantage and make EDI connections to major retailers around the world. Cin7’s built-in EDI will increase your business efficiency and eliminate complexities and high costs.