The term Electronic Data Interchange or EDI can seem intimidating to a business that does not use it. Don’t be fooled. EDI is used in a variety of industries, from retail and wholesale, to energy, healthcare, pharmaceutical, manufacturing, logistics, government, technology, financial services, and the list goes on.
Explained simply, EDI is the exchange of business documents from computer to computer in a standard electronic format. The most obvious benefit to your business right off the bat, as a result of implementing EDI, is cost savings. By simply moving from paper to electronic data transfer, you immediately eliminate the need for paper, mailing supplies, manual processing costs and supply storage costs. It really is that simple.
EDI immediately takes away your need for postal mail, fax and email as well. Yes, email is a current and also useful electronic approach, however, business data exchanged via email must still be processed by people. This leaves room for slow processing and higher error rates, as well as increased cost for manual labor. Alternatively, Electronic Data Interchange or EDI documents are sent directly to the appropriate application on the receiver’s computer where processing can begin immediately.