EDI integration is the integration of EDI (Electronic Data Interchange) systems with ERP (Enterprise Resource Planning) systems. 

EDI integration improves proficiency across organizations. It allows businesses to easily exchange EDI messages between customers, suppliers and 3PL partners. Commonly exchanged EDI messages include purchase orders, invoices and ASNs (Advanced Shipping Notices) proficiency across organizations. It allows businesses to easily exchange EDI messages between customers, suppliers and 3PL partners. Commonly exchanged EDI messages include purchase orders, invoices and ASNs (Advanced Shipping Notices). By using EDI integration, businesses avoid having to input EDI messages into their ERP system manually. Instead, EDI messages are instantaneously automated into the preferred internal ERP, diminishing the need for manual input or intervention by internal team members.  

In essence, EDI integration simplifies the electronic exchange of business messages between your internal systems and your EDI infrastructure. EDI integration technology utilizes automation to transfer data from EDI documents to multiple business systems seamlessly. This integration boosts accuracy and efficiency while reducing the risk of errors and improving overall operational performance. 

Redundant data entry is eliminated, transactions are seamless and communication with trading partners is improved. EDI integration involves connecting your EDI solution to your ERP, facilitating automated data transfer between them. Integration of EDI with your ERP revolutionizes traditional input methods for order placements, invoice processing and goods received. For example, upon receiving an EDI document, the data is automatically transmitted to your ERP system, eliminating manual data entry and enhancing operational efficiency. 

Implementing EDI integration will also allow organizations to establish a connection between disparate computer systems. This can be particularly important to an organization that has experienced an acquisition or merger. With EDI integration, incongruent systems can be combined to work across companies. Upon integration, business systems communicate using standardized EDI language, eliminating the need for manual steps. It guarantees an automated exchange of vital messages such as purchase orders or invoices. This modern approach is notably faster and more efficient than conventional methods like email or postal services, enhancing productivity and streamlining operations.

EDI can effortlessly integrate with your ERP system to enable smooth data exchange between your ERP and trading partners. This integration enhances efficiency, minimizes errors, and provides real-time visibility into supply chain processes.

In contemporary business landscapes, EDI integration is an indispensable asset. It catalyzes accelerated communication channels between business partners while ensuring adherence to regulatory frameworks, magnifies operational efficiency, and reduces risk and human error while increasing accuracy.   

Through EDI integration, the cumbersome burden of manual processes is eased. Error margins are significantly reduced, and transactional throughput is expedited. EDI integration allows customers to access real-time snapshots across different systems and platforms. This gives businesses a clear picture of what is happening in their supply chain. This means businesses can stay on top of market changes and customer needs.

Automate manual tasks  

Instead of relying on administrative staff to enter EDI data into your business system, EDI integration enables businesses to automate this process, accelerating supply chain communication.  

Increase accuracy

By removing manual processes and the likelihood of human error, businesses can improve the accuracy of their day-to-day tasks. EDI integration also observes stringent regulatory frameworks. 

Redeploy resources

Reinvest previous staff time rekeying EDI messages into your business system into more value-added tasks. 

Accelerate your order-to-invoice lifecycle

EDI integration lets businesses realize revenue faster by accelerating the flow of orders and invoices between themselves and their trading partners. Instead of waiting for manual tasks to occur, EDI integration allows EDI messages to be sent from your internal systems to your trading partners.

EDI compliance is essential to effectively engage with your trading partners. Businesses must adhere to the established EDI standards and guidelines set by partners. Failure to comply can lead to delays and errors in document exchange, impacting business operations and profits.  

EDI is a critical tool for businesses seeking to streamline supply chain processes and enhance efficiency. Implementing EDI enables error reduction, enhanced efficiency, and real-time visibility into supply chain operations. With the right EDI solution and implementation strategy, businesses can capitalize on EDI benefits and maintain a competitive edge in the market.

In brief, the process of EDI integration is as follows:  

• Export: Senders export electronic business documents like purchase orders from their systems 
• Transformation: Documents are converted into standard electronic formats using EDI 
• Validation: EDI conversion software ensures document accuracy according to agreed-upon standards 
• Transmission: Data is securely sent to middleware via SFTP, HTTP, or AS2protocols. It can be integrated into validation software, other applications, or sent directly to clients. 
• Reception: Upon receipt, the receiving party verifies credentials, authenticates, decrypts the file, and sends a message disposition notice (MDN) for acknowledgment 

The exchange of specific business documents with your EDI trading partners is known as EDI transactions or EDI messages. These documents strictly adhere to EDI standards like EDIFACT here in the UK and internationally and X12 EDI, which is used in the US. 

An EDI transaction encompasses a wide range of documents, including invoices, purchase orders, and health insurance benefits requests. Although there are over 10,000 different EDI messages available, most organizations typically exchange the most common ones. The three most used messages are Order, Invoice, and Despatch Advice (also known as Advanced Ship Notice).

Your business can choose between in-house EDI integration and outsourcing EDI integration using a trusted provider. We explain the two options below.  

In-House EDI  

In-house EDI requires your organization to be responsible for internally managing its EDI processes. This includes overseeing setup, managing maintenance, data translation, focusing on EDI mapping, and providing support. You will need complete control over the EDI system, which also consists of managing updates, onboarding, and other internal resourcing. Over the years, our customers have highlighted the shortcomings they have experienced while managing their EDI in-house. These were often driving factors behind choosing EDI integration from TrueCommerce:  

• Increased Responsibility: Managing and ensuring the success of an in-house EDI system can be a heavy responsibility. This can challenge and lead to added pressure in operations and staffing.  
• Higher Workload: Businesses may need to hire extra staff to handle EDI tasks, leading to increased workload and operational costs. 
• Reliance on Internal Expertise: Relying solely on internal expertise may limit adaptability in addressing new or unusual scenarios. It can also potentially affect system performance, leading to downtime and profit loss. 
• In-House EDI Costs. Including ongoing software licensing fees, infrastructure/technology expenses, internal staffing and recruitment costs.  

Outsourced EDI  

Outsourcing EDI means that external providers handle technical aspects like system setup, maintenance, data translation, communication, and mapping, offering comprehensive support. 

Advantages of Outsourced EDI: 

• Access to Specialised Experts: EDI service providers bring specialized knowledge and efficient problem-solving skills, ensuring seamless operations. 
• 24/7 Management & Support: Some providers offer round-the-clock support, minimizing downtime risks and ensuring prompt issue resolution. 
• Optimized Resource Allocation: With external management of all EDI tasks, organizations can focus resources on core business strategies, enhancing productivity and efficiency. 

If you do decide to streamline your EDI integration process and focus on growing your business, TrueCommerce is here to help. Contact us today to book a free demo from our expert team.

TrueCommerce EDI solutions offer seamless integration into a catalog of leading ERPs.  

Whether you're using Microsoft Dynamics 365 for Finance and Operations, Business Central or Microsoft Dynamics NAV, TrueCommerce's integrated EDI solution, delivered as a cloud-based managed service, can help your organization connect seamlessly with TrueCommerce's EDI managed service network. 

TrueCommerce also integrates with leading ERPS, including Netsuite, SAP, Sage 200, Sage X3, SYSPro,  Epicor and Infor.