What is EDI?
EDI Overview
Electronic Data Interchange is the paperless exchange of business documents, such as purchase orders, invoices, advanced ship notices, and over 250 others in a standardized format. Exchanging documents computer-to-computer is significantly more efficient than using traditional mail service or fax. EDI minimizes data entry errors, reduces labor costs, and increases timeliness of transmitted information.
EDI Streamlining Business Operations
In a typical business transaction, one company uses the computer to produce a document, that will then send it to his vendor. At the vendor's office, the mail room receives the document ad then routes it to the sales department which will then forward it to a data entry clerk who enters the document into the companies order entry system.
This document, like 70 percent of all business documents, is produced in one computer and then transmitted to another. In this scenario, more than a week can pass from the time the document issued to when it is entered into the vendor's order entry system. This process is time consuming, prone to errors, and costly due to the numerous individuals involved in the process on both the sending and receiving side.
By using EDI to send documents computer-to-computer, companies can reduce the one week time frame to hours or minutes, minimize personnel involvement, and eliminate clerical errors. This allows companies to better manage inventory levels through quick replenishment, invoice customer and receive payment more quickly, and improve customer service. EDI's rapid exchange of business documents is essential for all manufacturing, shipping and transportation scheduling and other time sensitive processes.
EDI Revolutionizing Business Operations
EDI is revolutionizing how companies are communicating with their business partners. It is increasing the efficiency and the effectiveness of business practices and strengthening relationships between customer and suppliers. With EDI you will undoubtedly change the way you conduct business. You will realize the greatest benefits as you integrate EDI throughout your daily business operations. Electronic Data Interchange is a means for improving the efficiency and productivity of your business. Experienced EDI professionals at ACS can assist you in identifying the optimal way of bringing EDI capability to your company.