In this time of modernization, businesses rely on digital infrastructure more than ever for their core operations. And it’s solutions like electronic data interchange (EDI) that allow organizations to digitally transform their processes efficiently and effectively.
EDI refers to the computer-to-computer transfer of business documents in an electronic format between two or more companies. Simply put, it’s how companies interact and work better together.
Businesses can exchange many types of documents using EDI. Among the most common are invoices, sales orders, purchase orders, and advance ship notices. EDI eliminates the need for paper forms and receipts, and speeds up the process of exchanging documents — all while minimizing human involvement through digital automation. That, of course, reduces the chances of costly errors.
In addition to improving speed and efficiency, EDI is also a high-value service for businesses that don’t want to incur expenses associated with printing and mailing physical documents. There are also advantages in terms of speed, security, and traceability, which are essential when exchanging vital business documents between companies.
This Article Covers these EDI Benefits:
- Accelerate Business Cycles and Outcomes
- Leaner Operating Costs Through Added Efficiencies
- Improve Accuracy and Reduce Human Error
- Provide Ample Data for Tracking and Optimization
As more business interactions take place in the cloud, document exchange also has migrated with it. In fact, the EDI market is rapidly growing. In 2019, the market had a $24.64 billion value, and that number is expected to nearly double to $49.213 billion by 2027.
Key Business Benefits of EDI
Accelerate Business Cycles and Outcomes
Business today happens in real-time. Agility is an asset for companies. The relatively instantaneous nature of EDI provides a much-needed edge for document transfer. A study by Dixons Carphone indicated EDI can speed up business cycles by as much as 61 percent, which represents a major increase in efficiency for businesses.
Automation is a key factor for this increase in speed. Automating processes greatly reduces (or eliminates) time delays experienced while manually entering, filing, and analyzing bits of data. Even simple autofill or data import features can shave countless hours off document preparation.
Less time spent on tedious manual tasks means businesses can focus attention on other important aspects of operation that potentially can have greater impact. For example, instead of getting bogged down in data collection and analysis, administrators can invest more resources and effort into marketing, development, or a myriad of other projects that can drive the business forward.
Leaner Operating Costs Through Added Efficiencies
There are many benefits of EDI that directly relate to cost savings. Most revolve around the efficiencies and synergies it enables within core facets of business operations.
With all the talk about digital transformation today, it’s easy to forget just how much of the business world still runs on paper. EDI changes that. Businesses can eliminate (or greatly reduce) the costs of paper, printing, storage, reproduction, postage, filing, and document retrieval. Those elements can make up sizable costs, and eliminating them could significantly trim overhead.
Those cost savings go beyond supplies, too. Consider the prevalence and severity of manual data entry errors. Even small mistakes can quickly become costly – with compounding implications. EDI reduces the impact of errors, including protecting businesses from costly audits, fines, misreporting errors, and numerous other headaches caused by incorrect data. Instead, EDI can quickly disseminate data via integration and automation.
Reduce Human Error and Improve Accuracy
EDI isn’t just more efficient than manual work – it’s also more accurate. When businesses cut down on the human involvement necessary in data exchange between companies, they also cut down on the likelihood of human error. Again, auto-import or AI tabulation tools go a long way in distinguishing EDI over other forms of document preparation and exchange.
Businesses can expect a noticeable boost in the quality and accuracy of data when using EDI for dispersal and intake of forms and documents. It’s a smart way to cut down on duplicated work and improve accuracy while also increasing speed.
Provide Ample Data for Tracking and Optimization
One of the biggest benefits of EDI is that it improves data quantity as well as quality. That makes it a no-brainer for businesses dealing with large volumes of data and communication with partners. Through EDI, users can share data across a wide range of communications protocols with stringent security standards in place. It’s not just about setting up a data funnel – it’s about protecting it. EDI offers the best of both worlds.
The digital nature of EDI also means data included in these documents is instantly searchable. That’s especially important in the age of semantic recognition and AI databases. No matter how much data is involved, EDI makes optimization and tracking significantly easier and less time-consuming. For example, a company may warehouse certain EDI data, then use an integration platform as a service (iPaaS) with built-in B2B/EDI management capabilities, such as the Boomi AtomSphere Platform, to make it more accessible, searchable, and readable.
In the Age of EDI, Boomi Offers Accessibility
The Boomi iPaaS can be an essential solution for any business in need of EDI. Most importantly, businesses need the capability to simplify and improve connectivity with trading partners. The Boomi platform connects data, apps, devices, and people, ensuring that relevant business documents are always easily accessible by those who need them.
With Boomi, you can efficiently connect data across systems, applications, and people to create a comprehensive, up-to-date resource of business intelligence. No matter how many documents a business uses, what information it contains, or what they’re used for, the Boomi platform helps make them more accessible across the business.
For more information about the benefits of EDI and how Boomi can get you more connected and amplify EDI data collection and exchange processes, contact us today.