Electronic Data Interchange (EDI): the best way to improve Supply Chain Management
How can you improve your supply chain management, use EDI. Electronic Data Interchange (EDI) may seem new to many businesses, but EDI has actually been used in business since the late 1960s. Today, more than fifty years later, there are still companies using their existing legacy systems for processing business-to-business (B2B) transactions. Simply put, using what has always been used may not be the most productive and beneficial choice for your business anymore.
Traditional B2B transactions include the processing of purchase orders, sales orders, invoices, advanced ship notices (ASN), and functional acknowledgement. Processing this many moving parts accurately involves a series of steps and details. In order to successfully process B2B transactions in-house also requires a monitored inventory of paper documents, employee training programs, and most of all, accurate human intervention. Unfortunately, human error is inescapable. Continuing to use traditional B2B transaction processing means continually monitoring error rates, inventory for processing materials, software updates, training costs and employee turnover. Although B2B transactions are important, processing them is a non-core business process. Therefore, considering business process outsourcing (BPO) would allow your organization to transition this category of processing off-site to a specialized BPO partner using EDI technology, while providing a significant cost-savings to your business.
Using EDI allows your organization the ability to completely eliminate the use of paper documents, while minimizing the level of required human intervention. Although EDI can be processed in-house independently, combining the use of EDI with a specialized BPO partner is a certain win-win for a vast majority of businesses. Why? It’s simple. Your company replaces the need for inventory control of paper documents, employee training programs, and accurate human intervention with the EDI system managed by an industry-expert. Not only does your business reap the rewards of a new state-of-the art EDI processing system it does not need to invest in, but your organization will also improve productivity, cut-out employee turn-over and training needs instantly, and reduce processing error rates. All of this works to improve overall customer satisfaction for your company, while greatly improving your processing capabilities.
EDI enables organizations to automate the exchange of data between applications across a supply chain. This process ensures that business-critical data is sent on time and is accurate every time. “The estimated market size of EDI is expected to reach $1.68 billion by 2018, with projections reaching as high as $2.1 billion by 2020,” according to a 2017 market report. More and more companies across multiple industries are realizing the benefits of EDI. Businesses can improve their supply chain performance with better planning, enhanced communications, collaborative efforts and more efficient transaction processing. By partnering with a United States-based BPO EDI partner, your business will benefit financially virtually instantly, while working to support the U.S. economy at the same time.
As a primary business process automation outsourcing provider, Integration’s goal is to empower all its client’s to focus on their core areas of expertise, while leaving the business process automation services to our team of experts. This is accomplished by supplying excellent business process automation services that enhance your company’s ability to provide increased reliability and cost savings to your customers.
Integration enables your company’s success by providing a complete IT outsourcing solutions for business process automation. As a result, this allows your organization to increase efficiency, by being able to respond rapidly to changing business environments, while meeting your customer’s needs consistently and in a more cost effective manner.