Not everyone is familiar with the term EDI unless you are a key member of the business world. EDI - or electronic data interchange - is the simplest way for businesses to exchange documents quickly and securely. This exchange can happen from anywhere in the world and is done completely electronically.
Electronic data interchange replaces the use of postal services, email, and fax machines. This is a confusing concept to some people since email is also an electronic approach and should essentially have the same benefits as EDI. But emails are still handled by people, rather than computers. When using email, there is still human error involved and the process is slowed by having to wait for responses.
If your business has not yet utilized the advanced technologies of electronic data interchange, it is time to hire an EDI company. For small business owners, you might be on the fence about it. But even for smaller businesses, there are so many potential benefits from using EDI. Keep reading to check out the 5 reasons electronic data exchange could help your business.
Your employees and team members can perform more efficiently with EDI
With EDI, paper-based tasks that used to be performed by employees can now be automated through the software. This frees up a good chunk of time for workers and allows them to focus on more important tasks throughout the company. Productivity rates have been shown to jump once a business starts using electronic data interchange.
EDI will actually cut costs in the long-run
Even though you’ll have to pay for EDI services or software, you’ll actually be doing your business a huge favor in terms of annual spending. Studies have shown that using electronic data interchange is around ⅓ the cost of using an alternative (like postal services or email). So not only does it save significantly on time, but it also saves on money. Think about the long-term effects, rather than the upfront costs of getting EDI started.
Transactions will be processed faster than ever
Since everything involving electronic data interchange is automated, orders are processed faster and delivery of your product can happen sooner. Chances are your customers will see a much faster delivery time (as much as 30% faster). One study even showed that the average 30-day processing time of an order for a certain company was reduced tenfold to just 24 hours.
Document accuracy is increased with EDI
When using paper-based services that human have control of, errors can happen. On average, paper documents are shown to have an error margin of 5%. Using automated services will decrease the chance of error, and more accurate data leads to a more efficient business model overall.
Using EDI is environmentally friendly
No matter how big or small your business, you have a social responsibility to care about the environment. By switching over to completely electronic methods, you are promoting sustainability and reducing your CO2 emissions. So not only will hiring an EDI company save money and increase efficiency, but it will also help the environment.