EDI Benefits

EDI helps businesses improve supply chain speed, accuracy, efficiency and costs, and some of the greatest EDI benefits come at the strategic business level. Here, we cover what EDI means, practically, for business.

Faster Processing

  • EDI can speed up business cycles by 61 percent
  • EDI enables transactions in minutes instead of days or weeks spent on postal mail or back-and-forth email communications
  • Automating paper-based tasks frees up your staff for higher-value tasks and provides them the tools to be more productive
  • Quick processing of accurate business documents leads to fewer re-worked orders, stock outs and cancellations
  • Automating application data exchange across a supply chain ensures critical data is sent on time and tracked in real time
  • Shortening order processing and delivery helps organizations reduce inventory

Lower Costs

  • EDI reduces the transaction costs of paper, printing, reproduction, storage, filing, postage and document retrieval, saving businesses more than 35 percent on transaction costs
  • For buyers that handle numerous transactions, using EDI can also result in millions of dollars of annual savings due to early payment discounts
  • In some cases, EDI is just 1/20th the cost of manual order processing, slashing costs by a factor of 20
  • EDI also eliminates costly errors due to illegible faxes, lost orders or incorrectly taken phone orders

More Accuracy, Fewer Errors

  • EDI reduces error transactions by 30-40 percent
  • EDI eliminates human errors from illegible handwriting, lost mail and keying errors

Better Relationships

  • Sellers benefit from improved cash flow and reduced order-to-cash cycles
  • In fact, EDI can reduce the order-to-cash cycle time by more than 20%, improving business partner transactions and relationships
  • Reducing errors also saves partners valuable time and frustration handling data disputes

Strategic Benefits

  • EDI provides real-time visibility into transaction status, enabling faster decision-making and better responsiveness to customer and market demands, helping businesses adopt a demand-driven approach
  • Product enhancements and delivery enjoy shorter lead times
  • Streamlines the process of entering new territories, as EDI provides a common worldwide business language

Environmental Benefits

  • EDI promotes sustainability and reduces CO2 emissions by replacing paper-based processes with electronic alternatives
  • EDI increases operational efficiencies, leading to fewer errors and less energy waste