Communication between partners is the key process to maintain good relationship, effective cooperation and the high quality of business processes. Each day a company can exchange hundreds or even thousands of documents with its business partners. How fast they are processed, influences all process stakeholders. To make partner collaboration more effective, electronic data exchange can be implemented.
Electronic Data Interchange (EDI) involves the exchange of messages in a defined formats between companies. Such messages can include e.g. order documents, confirmations, warehouse receipts, warehouse shipments, invoices and credit memos.
The main assumption of EDI is to eliminate multiple data and document entry and to make communication more efficient and effective. This is possible by means of interfacing applications used in the organisation involved. By implementing EDI, you can improve the availability of logistic information, enhance your data repository by collecting more specific data and as a result, reduce the time consumption of communication processes. In order to implement EDI, IT systems of customers and vendors should be interfaced. However, EDI does not define how the messages should be sent. They can be sent using any medium that is used by all stakeholders. They can be transmitted using a modem with FTP and HTTP.
EDI is a solution that can be implemented in any type of business. It is gaining the greatest popularity among retail chains and manufacturing companies. These organisations exchange thousands of documents daily (orders, VAT invoices, credit memos, etc.)
The EDI technology ensures many benefits. It reduces costs and order lead times, increases process efficiency and eliminates errors in documents.
Exporting purchase orders
Importing purchase orders
Generating EAN codes
Importing purchase invoices
Importing purchase credit memos
Exporting a confirmed sales delivery advice
Archiving EDI documents.
Importing sales orders
EDI sales report
Importing a confirmed sales delivery advice
Archiving EDI documents
Exporting posted sales invoices
Exporting sales shipment advices
Reduced number of documents with errors.
Errors in documents result frequently from human mistakes. EDI reduces the number of such errors, as each document is validated against formal and accounting rules before it is delivered to its recipient.
End of manual data entry
Documents are automatically imported to the recipient’s system. Therefore, there is no need to enter them manually.
Partners use uniform data standards which ensures consistency and transparency of messages.
Shorter order lead times
Standardised communication and a common language used by contracting parties reduces the time needed to complete the order.
Shorter application of financial records
Due to reduced order lead times and direct document transfer (orders, VAT invoices and credit memos), financial records are processed and applied much faster.
Faster communication, reduced paperwork and number of errors at order processing contribute to decreased costs. EDI also enables you to curb your sales and logistics management costs.