Three Ways Electronic Data Interchange Can Help Any Business

Tech

Transitioning to a Meade Willis electronic data interchange (EDI) system can help just about any company in many different ways.  Lets take a look at three ways most companies can benefit from EDI:  

EDI is COST EFFECTIVE

While it is not the only benefit, cost efficacy is certainly one of the most attractive benefits of all. Surely, many organizations who consider EDI solutions are actively hunting for cost cutting options and that is what brings them to learn about EDI.  As such, no listing of EDI benefits would be complete without a mention of how much money it could potentially save you.

    • EDI transactions reduce expenses associated with traditional paper, printing, reproduction, storage, filing, postage, and document retrieval—often by 35 percent or more
    • EDI can reduce the cost of processing by 90 percent in some cases (depending upon the size and function of your business)
    • EDI processing reduces the likelihood of errors (and lost revenue/extra expenses) from illegible faxes, lost orders, incorrectly scribed phone orders, etc

EDI improves SPEED and ACCURACY

Technology has changed the way people think about processes, mainly that we now expect things to be done pretty quickly.  Fortunately, implementing an EDI system can help you to improve not only the speed of your business but also maintaining the accuracy of information.

    • EDI can improve business cycle speeds by nearly two-thirds as exchanges that once took several days or even weeks can now be completed in a matter of minutes
    • EDI improves data collection quality, often resulting in upwards of 40 percent reduction in transaction errors that used to accompany illegible handwriting, lost faxes or emails, and keying errors
    • EDI can also help reduce order-to-cash cycle time by at least 20 percent

EDI improves OVERALL BUSINESS EFFICIENCY

Obviously, automation is efficient.  Specifically, though, this type of automation can improve your organization’s efficiency in many ways:

    • Automated paper-based tasks lets employees actually focus on more cognitive, higher-value tasks
    • Quicker processing of accurate documents means more consistency and fewer instances of revisiting tasks
    • Automation ensures business-critical data delivered on time and tracked in real time
    • Reducing order processing time and delivery times also helps to reduce inventory surplus to improve overall efficiency
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Carol Gilmore