Myths and Facts About EDI

Sep 19, 2022

Electronic Data Interchange (also known as EDI) involves the exchange of documents electronically between businesses. Things such as invoices, payment orders, and shipping manifests are the types of documents being transmitted via EDI. Big companies, like Walmart, use electronic data interchange to place an order to their vendors and exchange relevant information about that order. Around forty-one percent of businesses still do not use electronic data interchange. Let us take a look at some of the facts and myths of EDI.

Myth #1: EDI is expensive to implement

EDI, for many businesses, is too expensive to implement in-house. That being said, EDI is a cost-effective solution for small businesses who want to work with a trusted partner like Integration, Inc. Outsourced electronic data interchange will help you with time-consuming tasks, like document standards review and document mapping. Additionally, Integration, Inc. delivers a solution that is 100% compliant. 

Myth #2: Only big companies use EDI

In its initial stages, mostly large companies used EDI as industries moved towards globalization. Today, many small businesses continue to add EDI as part of their logistics structure. Companies like Walmart, Kroger, Petco, and other major retailers not only use EDI, but require that their vendors use it. Globalization not only changed how large businesses transmit basic documents electronically, like orders, but also made small businesses change the way they work with larger companies.

Myth #3: EDI is only for certain types of businesses

Many assume that only certain types of businesses use EDI, such as retailers and auto parts suppliers. In fact, many distinct types of businesses utilize EDI. For example, grocers utilize EDI to place orders and communicate with their vendors. In fact, grocers use a unique set of EDI transactions. For example, EDI 875 is the transaction code for grocers to make a purchase order. Other types of companies that use EDI transactions include those in the healthcare, pharmaceutical, utility, and construction companies. 

Myth #4: An ERP system will do the same things as EDI

ERP systems integrate many B2B functions for large companies. However, they do not replace a fully integrated EDI solution that maps and translates your business documents for your vendors and suppliers. ERP systems integrate with a fully integrated EDI solution to help you fulfill a cash cycle and drive higher revenue. 

Myth #5: EDI takes time to implement

Many think that EDI takes months to implement. If you are thinking about transitioning to EDI, Integration, Inc. will have you taken care of within a very reasonable amount of time, within a few days or a few weeks. Implementing EDI on your own could take as long as four to six weeks, if not longer. 

Work with Integration, Inc. for your EDI needs

If you want to do business with larger companies, let Integration, Inc. handle your EDI needs. Our fully integrated solution is painless, takes relatively little time, and comes with best-in-class customer support.

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