Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents, such as invoices, customs documents and PODs, in a standard electronic format between business partners. By moving from a paper-based exchange of business document to one that is electronic, businesses can enjoy major benefits such as reduced cost, reduction in processing time, less errors and improved relationships with business partners
There are a variety of electronic format standards, such as Web Services/Edifact/xml/xls/csv. Because EDI documents are processed by computers, a standard format and version must be agreed between the business partners so that each computer will be able to read and understand the documents.
Benefits of EDI:
- Cost reduction: expenses associated with paper, printing, photocopying, storage, filing, postage and document retrieval are reduced or even eliminated completely.
- Save time: complete exchange of information in minutes rather than days or even weeks of wait time for postage.
- Increase productivity: automating paper-based tasks allows employees to concentrate on higher-value tasks
- Reduce errors: eliminate problems caused by illegible handwriting and lost faxes or mail.
- Environmentally friendly: promotes corporate social responsibility and sustainability by replacing paper-based processes with electronic alternatives, thus reducing your carbon footprint.
To find out more about our EDI module and how it can benefit your business, contact BH Associates today.