What are the benefits of EDI?

Modified on Mon, 2 Sep at 7:46 AM

EDI (Electronic Data Interchange) provides trading partners with an efficient tool for the automatic transmission of business data from one computer application directly to another. Companies do not need to worry about different incompatible computer systems. Through the use of EDI message standards like GS1 EANCOM® or GS1 XML, data may be communicated quickly, efficiently and accurately, irrespective of the users' internal hardware and software types. 

The successful implementation of EDI provides major benefits for all the trading partners involved:

  • Cost efficiency - significantly reducing the volume of paper to be handled and re-keyed, results in immediate savings in administrative and personnel costs. Staff can be redeployed to other more value added functions within the organization. 
  • Increased speed- large volumes of commercial data can be communicated from one computer to another in a matter of minutes, enabling faster response and greater customer satisfaction. 
  • Improved accuracy - EDI eliminates the inevitable errors resulting from manual data input. Better logistics management and
  • Increased productivity - EDI helps companies to better manage and control production, purchases and deliveries. EDI is a key component of the just in time manufacturing and quick response customer supplier links, resulting in significant reductions in inventory levels, out-of-stock items and returns of goods.

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