Limitations Of EDI | EDI Disadvantages | EDI Barriers

Overcoming EDI Barriers

Gain a competitive advantage by utilizing technology that improves and accelerates the way you track and process orders.

Advantages of Traditional EDI

EDI systems enable the creation and transmission of purchase orders, advanced-shipment notifications, automatic invoicing and more. The immediate advantages of electronic exchange of documents include:


Information moves between computers virtually instantaneously, with little or no human intervention. Integrating data flows directly into the accounting or enterprise resource planning (ERP) system speeds up the processing of orders, picking, packing, shipping, invoicing and other functions.


Information exchanged without having to be re-entered manually all but eliminates data-entry errors. There is really no chance that the receiving computer will invert digits or add an extra digit.


Sending electronic documents is not much more than the cost of postage and by eliminating the re-keying of data, human handling, routing and delivery costs, the net result is a substantial reduction in the cost of each transaction.

Disadvantages of Traditional EDI

The benefits of traditional EDI were compelling, and it was embraced quickly by large businesses, but it did not fit the needs of small to mid-sized companies. Here are the key reasons why:


Early EDI business applications were complex and expensive. Primarily serving peripheral functions, they were not fully integrated into all business activities. So although there were substantial savings to be gained from EDI, the cost of re-designing software applications to integrate EDI into existing business applications offset the cost advantages.

Network complexity

The need for extensive telecommunications capability posed a second major barrier to widespread EDI implementation for small to mid-sized companies. Beyond the computer itself, a basic requirement of EDI is a means to transmit and receive information to and from a wide variety of customers or suppliers. This required a heavy investment in computer networks. Unlike the mail, to send electronic documents there must be a specific point-to-point electronic path for the document to take. So companies were either required to develop extensive and expensive networks, or rely on intermittent point-to-point modem communication.

With our Trading Partner Platform, businesses remain competitive by avoiding traditional EDI barriers. Contact an EDI specialist today and find out how we can help your business overcome the complexity of EDI with web-based solutions that fit your needs.



Get more information, a demo or quote.



Get the Benefits of EDI eBrief