Electronic Data Interchange (EDI) Explained
Unlike manual data interchange, which involves a lot of paper and people, EDI is the computer-to-computer exchange of business information and documents between trading partners, where the information exists and is sent in a standard electronic format.
In effect, EDI replaces the old paper-based, manual methods of exchanging business documents – such as faxes, postal services and even emails – with seamless, fast and direct communication to the appropriate application on the recipient’s computer. After which, the treatment begins immediately.
By integrating EDI data, manual processes are automated, turnover rates are accelerated and resources are used more efficiently.
When paper-based methods of data interchange are laborious, inefficient, difficult to follow, provide little visibility into the process, involve time-consuming data entry and high human error, it is clear to see how the EDI process is efficient, saving businesses a tremendous amount of time, productivity and money.
Indeed, industries such as manufacturing, retail, healthcare, and education have been using EDI for over 25 years because of the cost and resource savings benefits. However, EDI integration can be tricky. The key to maximizing the benefits of EDI is the ability to transform this mixed data into the formats required by various business applications.
The benefits of EDI in business
EDI accelerates the flow of information, which is at the very heart of the supply chain. This data is used by businesses to stay agile, resilient, and responsive to global and local changes in consumer demand, logistics capabilities, and manufacturing supply. Forecasting and production depend solely on the availability and accuracy of data. Without the IDE, this would be extremely difficult, if not impossible.
Business process automation powered by EDI implementation provides the following benefits to businesses:
- Reduced or eliminated paper document flow
- Faster processing speed
- Faster transmission times
- Greater accuracy of information
- Fewer data entry errors
- Cost savings in document and data processing activities
- Improved communication and relationships between business partners
- Faster order processing times
- Improved results with customers, business partners and competitive advantage
The connection between ERP and EDI
ERP systems such as Quick and easy BOS integrate front office, back office, production and resources into a unified system. ERP – like EDI – reduces human error, improves efficiency and makes a business more profitable. It follows that ERP is the perfect partner for EDI technology to streamline communication between businesses.
In this way, ERP and EDI work together to integrate all members of a company and its partners into the same communication and database system, quickly reducing the amount of paperwork and manual administration needed to communicate. between companies.
Why integrate ERP with IDE?
EDI provides electronic communication between internal business departments, as well as external businesses such as orders, payment advice, notifications and verification of shipments. The ERP system is the electronic repository for these documents, so to speak, automatically assigning appropriate action to the document process.
For example,
- Machines send status emails which ERP receives and processes, for example digital printer sends low toner email notification. The ERP then receives it, identifies it, and then creates the necessary transactions to resolve the toner problem.
- You are a distributor. You receive daily sales report emails from your branches which are imported into your ERP, triggering the required actions in the ERP that ensure the replenishment of goods.
- You receive a supplier invoice electronically and this automatically creates the corresponding transaction in your ERP, linked to the appropriate supplier transactions in the system.
- Your website receives Contact Forms/Support Request Forms which then directly updates the ERP module in your ERP application.
- Your trucks need to be weighed. EDI connects the weighing system to your ERP system and automatically enters the data into your ERP. No human intervention required.
- You have ordered stocks of this number in the thousands of units. The supplier sends a packing list which is imported directly into the ERP system via EDI. No prolonged human interaction required.
EDI automation reduces our reliance on manual human processes and clearly results in faster turnaround times, fewer errors, and greater efficiency in staffing. As a result, EDI ERP integrations provide invaluable data communications for many of the world’s largest companies.
Additional and enhanced benefits of EDI integrated with BOS ERP
Unified systems. ERP BOS acts as the centralized home for all your products, prices, inventory, sales transactions, deliveries, shipments, accounting, etc. For this reason, all the information you need to send through the EDI can be easily found, selected and transmitted with just a few clicks. The benefits here are manifold and critical: risk is reduced, significant savings in time and labor, transactions are processed almost instantly, and order cycle times are quickly accelerated.
Advanced analytics. Another benefit of integrating an EDI with your modern and agile BOS ERP platform is that you can take advantage of BOS’s advanced analytics functionality to better understand both your internal processes and performance, as well as those of your suppliers.
Predictive supply chain insight. BOS ERP provides a real-time overview of all your operations – and with integrated EDI, you can anticipate and quickly adapt to changes in supply and demand based on supplier information. This gives decision makers the data they need to anticipate changes and opportunities and respond with data-based confidence.
Seamless EDI integration with BOS ERP
Talk to us at QuickEasy BOS about your EDI integrated ERP solution. We have been developing BOS ERP continuously since 1988 and proudly use EDI to streamline data transfer.
Comments are closed.