Both public and private organisations across every industry can reap the multiple benefits of implementing EDI. Whether you are a small to mid-size supplier, large distributor or start-business, there is an EDI solution to suit your organisational needs. EDI can also help unify disparate legacy systems after company expansion or mergers. In a nutshell, EDI refers to the electronic exchange of critical business data in a standardised format across different businesses. EDI is applied across a variety of companies to serve a multitude of needs and organisational priorities. 

Below are some examples of typical applications of EDI across industries:

Managing Supply Chain 

EDI is extensively used for the supply chain management of information and products. It simplifies the flow of purchase orders, order confirmations, shipping notes and invoices between all parties.

Processing of Orders 

EDI systematises the order-to-cash process. This includes the electronic send/receive of:  

1. Purchase orders
2. Order receipts
3. Order amends
4. Order confirmations

Payment processing 

Many organisations choose EDI for its ability to take the labour out of the payment processing process. This change improves efficiency, saves money and improves cash flow. EDI automates the exchange of invoice data, payments and account balances.

Managing goods inventory 

EDI enables real-time inventory updates. EDI offers businesses a window into inventory levels, demand estimates and replenishment requirements. This information can be shared with all suppliers and partners for inter-departmental efficiency.

Logistics and Shipment/Goods Delivery 

EDI allows ASNs, advance shipping notifications, and shipping notifications to be exchanged across all pertinent parties. It improves accuracy and order-to-shipment timings. Organisations see improvements in logistics warehouse management. Moreover, if there are problems with goods received, EDI streamlines the returns process. EDI allows data on returns orders, returns authorisations, and refunds to be automated and efficient.

Point of Sale (POS) 

EDI facilitates the seamless transmission of crucial data between retailers and suppliers, including sales transactions, inventory statuses and product details. This exchange ensures efficient communication and fosters enhanced collaboration throughout the supply chain. Organisations benefit from improved inventory management, reduced errors and increased operational efficiency.

EDI is for any business that exchanges business documents with other businesses as part of their trading relationships.

Organisations of all sizes and from a wide range of sectors make use of EDI, such as logistics, manufacturing, retail and construction, although really, EDI can work regardless of the type of goods or services the organisation trades in. If an organisation is losing time or manpower due to the exchange of paper based documents with its trading partners, it would pay for them to consider EDI.

EDI is for both parties in a trading relationship – buyers and suppliers. Many buying organisations see obvious benefits due to the volume of documents they exchange with multiple suppliers, which can quickly become a drain on internal resources. And, whilst the most common catalyst for suppliers, who are new to EDI, is one of compliance, the benefits of EDI extend far beyond simply meeting their customers’ EDI requirements. Like their customers, suppliers also benefit from the removal of manual processes. EDI can also be a real competitive advantage for suppliers as it is a common trading requirement for many businesses and can therefore make suppliers more appealing to prospective customers.

Yes, if your business deals with documents from trading partners, be it customers or suppliers, on a regular basis.

With EDI, your team no longer has to manually process this kind of paperwork and can instead benefit from automated message exchange via EDI. Your EDI solution converts your business’s documentation into a standardised format before sending it directly to your partner’s system in the format they require, once documents are received from your trading partners they are converted into the format required by your business systems, removing the need for manual rekeying.

This automated data exchange saves considerable time and expense in managing business documentation by hand. All information is sent securely and with full traceability, meaning that the next stage of document processing – receiving payment for an invoice, for example – happens that much more quickly.

EDI facilitates smoother, more efficient business. EDI can be especially beneficial for retailers who sell through online marketplaces, such as Amazon and eBay. Consumers who shop on these platforms have come to expect a speed and level of service that can be difficult to achieve without EDI in place, and retailers who fail to meet these standards can find it hard to compete.

What’s more, EDI ensures online marketplace orders are received in a standard format that’s easily integrated with a business’s internal systems, saving time and effort that would otherwise go towards manual processing.

To find out more about the EDI managed service offered by TrueCommerce, please get in touch.

EDI is essential for businesses looking to gain a competitive edge. EDI allows businesses to swiftly responding to market shifts, boosting customer satisfaction, and positioning themselves as tech-savvy collaborators. EDI revolutionises B2B transactions. If you are looking for a faster, more precise and efficient sales process EDI is for you.  EDI fosters seamless communication and collaboration between all stakeholders for mutual success.

Still unsure about who can benefit from EDI? We have constructed a list of the type of organisations which can benefit from EDI, its implementation and industry advantages.  

Zero paper, zero waste

Businesses looking to reduce paper waste and meet CSR goals 

An EDI system means zero paper and zero costs for printing, maintenance, storage, postage and disposal of papers. If your organisational ambition is to go ‘paperless’ or reduce paper use, then EDI offers you a perfect, low emissions solution which can help you to meet environmental targets across every department.  

Comprehensive Visibility

Businesses seeking greater transparency and accuracy 

EDI offers a collaborative solution which allows partners to work with the same invoice. Information can be managed and delivered seamlessly. EDI also reduces the risk of human error resulting from manual input of critical data. Businesses see a dramatic improvement in data accuracy. EDI makes it easier to detect missing information and errors earlier. 

Growth and Innovation. Businesses aiming to re-direct valuable resources to innovate and improve  

EDI automates paper-based tasks so that organisations can accelerate transaction processing. EDI reduces the need for manual input meaning that in – house talent can be redirected to business – centric tasks. With EDI, operations can become more efficient. EDI allows teams to focus on core business activities, thereby fostering organisational growth and continuous innovation. Top of Form 

Optimise time-critical operations

Businesses with a need to deliver on strict deadlines and narrow time frames  

EDI automates the transfer of data across a supply chain. This means that business-critical data is not only sent in a timely manner but tracked in real time. Standardised and electronic EDI translation saves time and enables organisations to rapidly exchange business documents digitally. EDI is perfect for time-critical data handling. EDI offers data delivery to all parties with a turnaround time of minutes rather than days.  

Cost effective solution

Companies looking to reduce operational costs and expenses related to legacy infrastructure  

Integrating EDI into your preferred ERP platform allows organisations to streamline the order-to-cash cycle. By automating data entry across multiple systems, organisations can reduce expenses and operational running costs.

Prioritise Security

Businesses seeking a secure and protected platform 

Employing EDI within your organisation can help you to reach security standards across all departments. EDI transactions are incredibly secure compared to traditional paper or email communication. EDI offers world-class infrastructure and encryption, keeping your data safe and stable.