The EDI Integration provides many benefits to the Business World. Computer-to-computer exchange of information is much less expensive than handling paper documents. Studies have shown that manually processing a paper-based order can cost $70 or more while processing an EDI order costs less than one dollar.
- Much less labor time is required
- Fewer errors occur because computer systems process the documents rather than processing by hand
- Business transactions flow faster.
EDI helps to reduce Cost and improve efficiency, considering a fairly simple example of non-EDI-based purchase, wherein a customer needs 365 widgets, and he/she creates a purchase order, gets it printed and mails it over. As the supplier receives the order, he/she types it into the computer system of the company. This is followed by the inventory in-charge pulling up the order and shipping out the concerned widgets.
By removing the manual keying of key business documents such as Orders, Invoices, Acknowledgments and Despatch Notes your company can benefit significantly from:
- reduced labor costs
- elimination of human keying errors
- faster document processing
- instant document retrieval
- removal of reliance on the postal service
Once all this is done, the supplier mails the generated invoice, and looking at the sequence of steps to be followed, one can imagine that the entire process would surely require several days, whereas EDI comes with enormous potential to cut short all the delays, and shorten the process drastically! With EDI its all paperless PO, Paperless Invoice, Paperless electronic Ordering and more. Send EDI 850, EDI 856, EDI 855 and EDI 977 are the documents which will do their job and two trading partners can exchange documents in seconds.
With the help of EDI services, the process of sending documents like invoices, purchase orders hardly take a few minutes because everything is done electronically, rather than being done manually. It may have initial cost to it but it cuts down the everyday cost drastically and improves ROI on investment.
As a matter of fact, the biggest advantage of an EDI system is essentially its capability to eliminate the necessity to re-key the received data, which means that you end up saving lot of human labour as well as time. Moreover, absence of human involvement in the process also eliminates the possibility of errors being committed by the data entry operators, hence improving the accuracy, reliability, stability and efficiency of the entire system.
A typical EDI system takes many other factors into considerations and essentially helps in upgrading the performance of a system at a meagre cost, and processing becomes much easier and faster. With an efficient EDI system in place, a company can easily receive and process an order, and even release its in-voice along with the shipment on the same day.
In a broader way it means greater customer satisfaction, due to faster processing, and zero processing error-rate, and the EDI services like order form 810 etc also facilitate an organization to handle large volumes of work on a daily basis.
Over time, as the usage of EDI services and systems has increased drastically, the operating cost has also reduced considerably, and today it is quite affordable for any small-mid size company to deploy an EDI system with their business.
Channel Integration is a company which helps in in-house and outsourced EDI solutions.. The EDI reporting services are also highly effective and allow easy auditing to ensure that the work is being carried out smoothly within the organization and any kind of discrepancy can be easily spotted as there’s no manual work involved. With the tremendous upsurge recorded in the EDI industry over the last decade or so, the EDI transactions are expected to grow to even larger scale and quite obviously more and more companies would be looking to incorporate the EDI system into their business in near future.