Supply Chain : A Look At EDI (Electronic Data Interchange)

Supply Chain : A Look At EDI (Electronic Data Interchange)

Do you not know what EDI means, and want to learn more about Electronic Data Interchange? Essentially, EDI is a way to exchange information between computer applications without a lot of human interference and effort. EDI is the primary method of information exchange for eCommerce. Special connections, email, even the Internet itself can be used as a conduit for EDI. There is so much more to EDI than just invoices and the buying of items. With the right EDI setup, you can use it to take care of many aspects of your business operations, including order statuses, automatic funds transactions, and invoice printing. You can do much more with EDI and in less time. Now, let's think about a type of purchase that does not revolve around EDI. If a buyer wants a few hundred widgets, he will fill out the purchase order and snail mail it to the supplier. The supplier receives it several days later and manually inputs the order into their inventory system. The order is taken and the widgets are shipped, the supplier mailing an invoice back in the mail to them. This can take far too much time to implement, which EDI can help remedy. With electronic transmission of payment and invoices, you can cut those several days down to just a matter of minutes, which also facilitates efficient shipping. Also, you only have to enter the information once when you work electronically. EDI has this chief advantage to help your business succeed. Labor times are dramatically reduced, and data entry errors are kept to a minimum, as there is no reentering of data. This also means that there is no backlog to speak of; once the order comes it, it can be invoiced and shipped later that day. According to some research, companies that switched to EDI methods of inventory keeping and shipping were able to shave 40% off their turnaround time, including getting the product and filling out orders. If you are a company that provides goods for purchase, you should invest in EDI for your eCommerce. Due to the fact that the process helps every facet of your business, form inventory to shipping, you can make orders go much faster and help every step of the process. Most companies in the Fortune 1000 list implement this method, and it helps them become the strong companies they are today.

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