Most larger businesses have heard of and are reaping the
benefits of using EDI (Electronic Data Interchange) for business data
exchanges. However, for all the benefits EDI offers businesses, smaller, less
familiar organizations can feel intimidated by the process and its
technological complexity. By partnering with an EDI expert, your organization no
longer needs to feel out of control for lack of tech-savvy expertise.
EDI services not only provide a
substantial cost-savings for businesses, but EDI is becoming the standard
for many businesses participating in data exchanges. What does this mean for
companies not using EDI? It means those companies will need to incorporate EDI
into their business platforms or be left out of certain business relationships.
EDI itself is the process of electronically
exchanging business documents using a standard format that is secure and
transmitted via communication protocols, such as a VAN, FTP, sFTP, AS2, etc.
Information transmitted using EDI could include purchase orders, invoices, ASNs,
etc. Integrating EDI into your business allows your organization to send
standardized, secure data that is structured and follows EDI standards. The
most used standards throughout the business community include:
UN-recommended UN/EDIFACT – International
standard outside North America
ANSI ASC X12 (X12) – US standard
TRADACOMS standard – UK retail industry
ODETTE – European automotive industry
Adding EDI to Your Business
Many businesses accomplish EDI integration by outsourcing their
EDI processing needs. Outsourcing EDI does not mean venturing overseas. In
fact, companies, such as Integration, Inc., are located across the
United States and specialize in the implementation and management of EDI for
businesses just like yours.
Adding EDI to your business typically results in cost-savings
because EDI works to streamline and automate the manual data exchange process.
With more than half of an organization’s revenue being processed through EDI
operations, EDI makes processing data correctly vital to the success of a
business. EDI processing for many businesses is quite intricate and requires
advanced knowledge of EDI processing operations in order to be
accomplished correctly. Is this something you feel can be completed correctly
in-house? Most businesses would answer no.