Electronic Data Interchange and How It Can Help You Grow


Electronic data interchange is the new wave of business technology that can help streamline your business communications process while assisting you to maximize the efficiency of your employee and computer resources. What is electronic data interchange (EDI)? Simply put, it is communication between computers to instantly and quickly transfer vital information. Large retailers such as Walmart will only do business with vendors that have EDI systems in place, so you will need one if you plan to target that market.

At TrueCommerce we can help you establish EDI protocols and help with EDI software needs, whether you are taking the leap into this popular form of modern business communication yourself or whether a client is mandating the use of EDI to maintain commercial relationships. No matter what your experience level with EDI, TrueCommerce can take your company to the next level of communication and efficiency.

How Does Electronic Data Interchange Work?

Frequently mandated by many clients in the supply chain industry to streamline the transportation and warehousing process, EDI is becoming increasingly popular and familiar in the supply chain industry. EDI works when one computer, using particular codes and protocols, communicates information directly to another computer to process information – usually an order or part of a payment process. No humans are involved in this process, which occurs nearly instantaneously.

For example, a client may place an order for a shipment of two thousand bags of frozen vegetables with specific needs for transportation and refrigeration. Rather than an employee making a phone call or sending an email or regular paper invoice, the order is instantly transmitted to the warehousing computer system, where it is routed directly to distribution for loading by the warehouse crew, provided the goods are in stock. Meanwhile, this process also generates an invoice directly for the accounting department.

All of this can be accomplished without the need for employee data input. This process decreases the need for employee resources and wasted hours. It also increases accuracy, as data collection is done at a single point and then transmitted electronically.

Getting EDI Rolling in Your Business

Increasingly, EDI is a demand from clients to shippers to increase the efficiency of orders, and to eliminate valuable time lag in the processing of orders. Setting up EDI protocols can be a complicated business, which is why TrueCommerce offers software support for setting up EDI within your company. Start with the basics and expand which protocols are used later to loop in accounting or picking and packing. Whichever options you choose, TrueCommerce’s consultants can guide you into taking the step toward installing and setting up electronic data interchange in your company.