Electronic Data Interchange (EDI) has become a fundamental part of doing business. EDI provides businesses with quick, secure and accurate solutions for document transfers. Today, over 20 billion EDI process transactions occur annually. That’s over 60 percent of businesses across the United States alone who are utilizing EDI in their daily operations. If you’re not a business currently using EDI and all the benefits it offers, it’s time to ask yourself why.
Businesses using EDI today have the benefits of more secure exchange of information, cost savings, speed of information exchange and accuracy. But what exactly is EDI, and what are the advantages of EDI that make it so successful and attractive to businesses?
What is Electronic Data Interchange (EDI)?
Electronic Data Interchange, or EDI is defined as “a method for exchanging business information using a standardized electronic format from one company to another.”
EDI replaces any paper processing of forms or documents, including invoices, receipts, delivery tickets, etc. As a result, there is an immediate cost savings to businesses by eliminating the need for paper supplies, extended processing time and human error. “EDI continues to prove its worth as an electronic message data format…the annual volume of global EDI transactions exceeds 20 billion per year and is still growing,” according to a recent study by Forrester.
As businesses like yours begin to understand the capabilities and benefits of choosing EDI for their business, they are also learning of the major cost-savings associated with outsourcing their EDI and other non-core internal processing tasks. From Electronic Data Interchange (EDI) to check writing, check printing, rebate processing, barcode labels , third party billing and more, outsourcing non-core business processing will streamline your business and allow you to focus more time and energy on cultivating your core business objectives.
Benefits of Choosing EDI
Choosing to integrate EDI into your business system can result in millions of dollars of annual savings due to early payment discounts, especially for buyers that handle numerous transactions annually. The benefits related to implementing EDI include;
- Utilizing EDI improves transaction speed and visibility, while decreasing the amount of money you spend on manual processes, especially in areas of order processing, delivery processing, receipt processing, and invoicing.
- Using EDI will streamline and improve the speed and accuracy of processing your non-core business data. EDI can increase business processing up to 61%, resulting in enormous savings and processing organization for your business.
- EDI transactions will quickly improve your overall data quality and can produce between 30% to 40% reduction of errors overall. This in turn produces excellent cost-savings, as well as more streamlined processing results. Saving processing time can potentially reduce overall processing costs up to 20% and increase business efficiency, assisting in improving partner processing and customer relationships.
The fact is that the typical total amount spent by a company for one year of EDI outsourcing is less than the annual salaries and benefits paid to the personnel in that company’s EDI department. EDI is more secure, provides an array of cost-savings and decreases human error rates substantially. The financial commitment and time spent recruiting qualified individuals for in-house processing can be very high and avoided altogether by outsourcing your EDI needs.
In choosing to work with an EDI outsourcing business your business no longer takes on the accountability or responsibility of processing non-core business data accurately or being required to stay up-to-date with the latest standard processing technology, which can be a financial burden to smaller companies. By working with an EDI outsourcing company, that partner invests in high quality processing capabilities that then apply to your business processing needs, without your business providing a substantial up-front investment.
Meet Integration, Inc., Your Answer to Implementing EDI into your Business
Integration, Inc. is an industry-leading business process automation provider specializing in business process automation services, such as Electronic Data Interchange (EDI), check writing, check printing, check processing, rebate processing, barcode labels and third party billing to thousands of companies across the globe.
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 respond rapidly to changing business environments, while meeting your customer’s needs consistently and in a more cost effective manner. https://www.integrationinc.com/