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Benefits of EDI - Supply Chain Management Basics

What are the Benefits of EDI? 

EDI (Electronic Data Interchange) is a term that is used for the paperless service that allows electronic interchange of business information using a standardized format. Usually, the documents are sales orders, purchase orders and invoices.  There are many other documents required in supply chain management like bill of lading, customs documents, inventory documents, shipping status documents and payment information documents. EDI allows B2B businesses  to transact together electronically rather than with paper. Business entities conducting business electronically are called trading partners.

The benefits of EDI are mainly a tremendous gain in working more efficiently with your suppliers which makes you more easy to do business with and helps build a foundation to increase more sales activity with each trading partner. EDI helps push costs out of the supply chain by eliminating inefficiencies and manual interventions. Data Interchange, for example, is an industry leader in supply chain integration, for all types of and size of business.

EDI solutions are not just for big box retailers and large companies. EDI helps small businesses seamlessly transact with large and small networks of suppliers. Whether you are trading with a small number of SME (Small and Medium Enterprises) suppliers, or a large number of suppliers located around the world, EDI can help with any kind of technical and business requirement, and provide support and resources to manage. It frees up resources away from the processing of transactions to be better utilized to help grow the business.

The EDI Gateway helps exchange forecasts, orders, invoices, or any other business document,  You can also integrate your suppliers with their own ERP systems or require a simple web EDI portal you can achieve 100% supplier uptake.

Top 7 Benefits of EDI - Be in Control to Decide What to Share:

With EDI solutions, you can share a variety of data with your suppliers:

1.    Supplier capability surveys
2.    Supplier on-boarding
3.    Managed connectivity

EDI may seem complicated, but in reality, it is a vehicle to standardize and simplify communications between trading partners. Retailers, suppliers, distributors, 3PLs (3rd Party Logistics), etc. all can benefit by exchanging important business documents on a secure network and in real-time. This translates into:

4.    More accurate information, less manual intervention Increased automation – less paper;
5.    Improved visibility on B2B transactions
6.    Closer business relationships
7.    Shorter sales cycle faster orders-to-cash more sales!

“Full-service” hosted EDI implementation includes: application file specifications analysis, EDI standards compliance, connectivity implementation, data transformation mappings creation, customer testing, trading partner testing, continual monitoring and production.

Top 14 Benefits of EDI to Suppliers:

EDI is a growing technology solution that many trading partners now expect or require for you to go business with.  The advantages to utilizing EDI are numerous and include:

1.    EDI compliance to Trading Partner/Buyer Requirements
2.    Real-time communication & global data sharing
3.    Enhanced order accuracy & faster confirmation
4.    Elimination of manual tasks
5.    Completely paperless
6.    Dependable B2B Expertise
7.    Secure, Tier-1 EDI Network
8.    Electronic catalogue for suppliers to sync their product data with retailers with the capability of an easy & quick methods to signing up
9.    The ability to connect with many retailers
10.    Offering competitive pricing for small suppliers
11.    Quickly connect with your trading partners who are requesting that you become EDI compliant.
12.    Complying to a Buyer’s EDI mandate EDI expertise to guide you with technical requirements
13.    Staying up-to-date with modern technology
14.    Increased customer satisfaction

Fax-to-EDI capability:

e-Fax (fax-to-EDI-capability) provides an efficient and cost-effective way to trade electronically with your fax-ready business partners, regardless of their size. The Fax-to-EDI service automatically converts information from trading partners’ faxes into electronic data and then delivers this data ready for integration into your ERP or other enterprise applications. The result? Faxed documents can now be processed just like electronic ones


If you need an easy and cost-effective EDI solution that requires nothing but a computer and an internet connection, Web-EDI is your answer. Web-EDI allows you to become EDI-enabled to reach all of your retailers through a web browser.  It is fast to implement, easy to use and requires no additional software. Web-EDI service also enables carton label printing for your convenience.

Electronic Data Interchange (EDI) is a critical necessity for many warehouses to communicate with customers, partners and retailers. EDI helps your operations run more efficiently, keeps you current with the requirements of your customers, partners and vendors, and most importantly, helps you to remain competitive.

Learn more about Supply Chain Management Technology

Posted by iCepts Technology Group, Inc. - An Accelos and Microsoft Dynamics NAV Partner in Pennsylvania

About iCepts Technology Group, Inc. Middletown, PA

We are a Microsoft Dynamics NAV Partner offering implementation, service, and support for Microsoft Dynamics NAV in: PA, DC, DE, MD, NC, NJ, NY, OH, VA, WV, and the entire Mid-Atlantic Region. We also offer implementation, service, and support for Accellos One Warehouse Management Systems in: PA, DC, DE, MD, NC, NJ, NY, OH, VA, WV, and the entire Mid-Atlantic Region.

As experienced SCM, WMS and ERP consultants and value added resellers (VARs), we provide start to finish services for the solutions we represent Microsoft Dynamics NAV for Distribution and Manufacturing, Accellos Warehouse Management System (WMS), Server virtualization, open source VOIP phone systems and infrastructure and security. We provide services that cover process analysis, implementation, training, security and networking. Naturally, we also provide full ongoing support for years after implementation to help our clients succeed. We are your one stop shop for your business technology needs.

Contact us for additional information by clicking HERE or...
Phone: 717.704.1000

Another version of this article was previously posted by iCepts Technology Group, Inc.- A Pennsylvania Microsoft Dynamics NAV Reseller on Supply Chain Management Basics – What is EDI?

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