The Growing Dependence On Edi Services

With increasing internet presence becoming a reality in more and more companies

, EDI or electronic data interchange is also simultaneously catching pace as these companies recognise the importance of this technology in helping them conduct business transactions, fill out orders, send invoices and so on. The savings on cost as well as improved efficiencies in business processes is much too obvious for any company not to take to this technology and the sooner they are able to make the transition, the better for them.

Companies are also insisting on their vendors and suppliers to convert to EDI systems so that there is compatibility between systems and information on various elements of business operations such as inventory levels, sales orders pending to be fulfilled, outstanding amounts still pending for collection and so on can be passed on quickly and without errors.

In business, time is indeed money and the major advantage of EDI services stems from the fact that you save a lot of time through automated processes and also in virtually eliminating human errors that are pretty common in the manual method of working. You also save time in not having to print out paper, stuff it into envelopes and mail them. Information stored in electronic form is also much easier to retrieve and access as compared to going through filing cabinets. There is also no need for someone to indulge in error correction and he or she can be asked to do something more productive.

The positive aspects of most modern EDI systems are the ease with which they can be set up. There is no specific software to be put in place or maintained and with excellent customer service backup to counter any problems, companies do not have any hesitation in going for them. They are able to justify the costs in setting it up quite easily as they know that the return on investment is definite and quick.

EDI automation in modern times has virtually replaced any human intervention or interaction. Gone are the days when you had to manually format bills and send them through floppy discs to the recipient. Email attachments and document readers have made it very easy for companies to interact with their customers, vendors and even the general public at an affordable cost. The spin off benefits have been quite amazing with companies reporting much better business metrics and improved employee performance.

EDI services can be set up in house or through an outsourced agency that specialises in taking care of the various IT requirements of companies. This is a decision that can be taken based on the size and automation requirements of the company. While outsourcing would definitely be costly, as long as you can get the right service level parameters from the agency, it should be a sound business decision. In the meanwhile you can always look at potential candidates within the company who can take on the role of an EDI administrator over time after due training and do justice to the role.

by: Lawrence White

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