Benefits of Integrated EDI
Integrated electronic data interchange (EDI) is a data processing solution that delivers EDI transactions from your supply chain partners and channels into your enterprise resource planning (ERP) system. It eliminates clunky paper documents, daily emails, and manual data entry and boosts return on investment (ROI).
The team here at TrueCommerce has put together a quick guide to walk you through the difference between a typical EDI option and integrated EDI solutions—and the benefits of choosing an integrated solution.
How Does Integrated EDI Work?
Electronic data interchange is a system that facilitates the smooth and secure intercompany communication of business documents, also known as EDI transaction codes. Integrated EDI is a form of electronic communication designed to automate the process of reentering information by connecting an EDI solution with an enterprise resource planning (ERP) system or internal systems like accounting software, warehouse management systems, and more. Integrated EDI can process documents like orders, invoices, credit notes and advance shipping notices.
Integrated EDI leverages a complex interplay of moving parts that contributes to maximizing efficiency. An integrated EDI system has four key components:
- EDI translator: The company using EDI uses a translator to receive incoming documents and translate them into ERP-friendly formats or readable text.
- Data mapping: The next component ensures that data is mapped properly between the EDI translator and accounting software ERP system.
- Trading network: All systems integrated with the EDI solution need to have a safe, secure, and reliable trading network to transmit EDI transactions with customers.
- Service and support: EDI also requires comprehensive support to ensure that it's set up properly and maintained over time.
Integrated Versus Non-Integrated EDI
Integrated EDI connects with external entities like suppliers, 3PLs, and customers, and transfers business transaction data between them and your internal systems. Conversely, non-integrated EDI requires manual data entry to interface with enterprise resource planning systems and only connects with outside vendors. This creates a significant potential for information silos and data entry errors that can result in incorrect deliveries and chargebacks.
Integrated EDI is a tool that can optimize your workflow from data entry to record-keeping. Three key benefits of an integrated EDI solution include:
- Increased Accuracy: The EDI system automatically checks transactions for errors during the sending and receiving processes. It also verifies transactions sent and received while providing process controls for your vendors and suppliers. This also supports ongoing EDI compliance with retail customers.
- Process Automation: EDI integrations reduce or can even eliminate tedious and time-consuming manual data entries to prevent chargeback penalties and shorten the work cycle on orders for faster fulfillment.
- Streamlined Supply Chain: These tools help your office staff maximize productivity by streamlining inventory management and providing real-time visibility into your supply chain channels.
Connect With TrueCommerce for Integrated EDI Solutions Today
TrueCommerce offers fully managed, end-to-end integrated EDI solutions that are compatible with the ERP business system of your choice. We provide 24/7 support, proactive monitoring, and a fully hosted solution in the cloud.
Not sure if integrated EDI is the right fit for your business or if you can integrate it with your tech stack? Our friendly team of customer service specialists will walk you through your options. If you're ready to take the first step on your journey to better tech solutions, reach out to our team today!
About the Author: Kristen Puluso has been with TrueCommerce since 2007. She is responsible for the implementation teams of TrueCommerce. Kristen joined the team as a Technical Support Representative after graduating from Robert Morris University with her Bachelor's in Information System Management. After several years, she moved into leadership. Since then, Kristen has held various positions in the organization, most recently the VP, Client Delivery. She is passionate about great customer service and focused on metric-driven results with her team. Kristen has two children, Aubrey 3 and Cameron 7. She appreciates the time she gets to spend with her family, boating at their family lake house and all the exciting new adventures they get to do together.