Moreover, there are a variety of EDIs available, each suited to an organization’s needs, capabilities, and budget. These include Direct EDI, Value-Added Network, AS2, EDI via FTP/VPN, Web EDI, Mobile EDI & Managed Services EDI Systems.
Of course, each type of EDI provides a unique group of benefits to the organizations, but in general terms, the overall benefits of using EDIs in the supply chain domain are as follows:
Save time and money
EDIs help businesses save time on tedious processes, and save money by moving paper transactions to digital mediums. By switching to EDI in the supply chain, business processes like ordering and purchasing are catalyzed exponentially. Also, expenses for storage are minimized, while costs for communications and manual checks are reduced due to streamlining and improving processes through the EDI system.
EDI in the supply chain standardizes transactions with suppliers reducing the risk of miscommunication, human error, incorrect shipments and other mistakes. This can be especially helpful for large retailers as they deal with a large variety of suppliers within their supply chain.
Supply chain EDI transactions between trading partners can be completed faster and at greater volumes. This, in turn, speeds up payments and improves cash flow.
Improve inventory management
Via the exchanging of EDI documents, high levels of supply chain visibility are attained. This provides real-time updates for businesses so inventory levels are much more accurate, and gives businesses the ability to effectively allocate resources and prevent inventory shortages while also giving them the capabilities to eliminate excess inventory.
Therefore, when it comes to supply chain organizations partnering with Transport & Logistics stakeholders, the latter require their vendors to become EDI capable and compliant. ‘EDI capable’ is a company’s ability to implement an EDI solution for simplified procurement processing and streamlined communications between trading partners, suppliers and customers. ‘EDI compliance’, on the other hand, refers to following an organization’s EDI specifications and requirements.
Having said that, EDI can be difficult to implement for some enterprises. There are shifting government regulations, standards and updates. Moreover, any organization looking to implement needs to accommodate the complexities of global business needs. These factors, and others, have led many organizations to outsource their EDI solutions.