What are the benefits of EDI?

Benefits of EDI

The benefits of EDI can transform the fortunes of businesses, large and small.

Using EDI can transform the fortunes of businesses, large and small.

For small firms, the overall benefits of EDI is that it’s an engine for growth, it frees up valuable time for key tasks like business development and it improves cash flow.

For larger organisations, moving to a 100% EDI-enabled supply chain produces significant economies of scale and business efficiencies. Therefore, organisations that have EDI systems in place much prefer to work with suppliers using EDI and, in fact, many make EDI a trading requirement.

There are many benefits of EDI:
  • It’s fast – streamlined business processes mean that documents can be exchanged in minutes
  • It’s accurate – manual data entry errors are eliminated
  • It’s secure – you receive confirmation that your documents have arrived safely
  • It cuts costs – of printing, copying, filing, storage and postage, and of repetitive, labour intensive tasks, administration and disputes caused by data entry errors
  • It happens in real-time – informing and speeding up business decisions and response times
  • It’s great for business – you’re part of a connected trading community and can build more productive relationships with suppliers and customers alike
  • It’s great for cash flow – payment schedules are shorter and more reliable
  • It’s flexible – you can integrate your EDI system with your back office accounts, warehouse or ERP systems for more business efficiencies
  • It’s liberating! – you’re free to concentrate on high value tasks, like customer service, sales and marketing and product development.
For smaller businesses, EDI is all about speed and efficiency. Replacing, slow, labour-intensive, repetitive, paper-based processes with a fast, accurate electronic system speeds up payments and means that entrepreneurs can redeploy precious resources for more valuable, business-building activities.


Free from the administrative burden, agile firms can focus on what they do best, building long-term relationships with customers, developing new products and services and opening up new markets. EDI is a real game-changer.

Larger businesses with an EDI-enabled supply chain benefit from streamlined, consistent and integrated business processes. Real-time information about individual suppliers helps inform management decisions and builds strategic partnerships, encouraging buyers and suppliers to collaborate with each other.

Improved supplier management also contributes to the achievement of corporate social responsibility, sustainability and ethical trading goals, while the business efficiencies and economies of scale that EDI delivers also reduces carbon footprint and boosts environmental credentials.

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