Benefits of EDI
There are many reasons to consider implementing an EDI solution into your business. For one, EDI streamlines communication between business partners and improves operational efficiency.
But the benefits of EDI don't end there. Some of the many benefits of EDI include:
- Improves efficiency and productivity. Preparing and managing paper documents can be a major time sink. Fortunately, EDI removes a significant source of paper documentation. To get an idea of how much time this can save, compare the process of finding a file in a filing cabinet to using Google. Now multiply that by the scope of every business transaction in your organization.
- Saves money: EDI software can save your business money in two ways. The first is that it lowers costs related to paper management, as digital solutions are usually less expensive than their paper counterparts. Additionally, EDI saves money by standardizing communication. You don’t have to spend extra money on a bunch of different software tools to keep up with each client or supplier.
- Minimizes errors: Minimizes errors: The automation of EDI helps to eliminate the risk of manual data entry errors in your business system. This improves accuracy, which further lowers costs related to error correction and management. With an EDI, you’re lowering labor costs on multiple fronts and improving the accuracy of your business transactions.
- Enhances customer service: Finally, EDI helps with customer service. You’re minimizing errors, helping customers save money, improving communication speed and efficiency, and automating important communication. Improved customer satisfaction can also help you retain more customers in the long run.
Challenges of EDI
Considering all of these benefits, it might be easy to assume that EDI is a comprehensive solution that only improves things. But in reality, it’s like any digital tool — benefits will depend on the application.
EDI comes with a few challenges, and understanding those before investing in EDI solutions can help you dodge common problems and maximize your benefits.
The first challenge is cost. If you don’t already have EDI resources in place, then incorporating them requires a from-scratch investment. You’re building up a new resource for your business. While you can manage these costs over time, you're still adding an expense that wasn’t originally part of your budget.
Technical requirements are another challenge. EDI is standardized, and that means that your technology has to be compatible with EDI standards. That might require you to purchase new hardware or software for direct EDI.
Or, you’ll have to invest in outsourcing resources to compensate. Either way, you have to satisfy the technical requirements before you can gain any benefits from EDI.
The third major challenge is changing standards. EDI has standardized protocols, and that means that it has to keep up with changes in technology. EDI is not restructured from top to bottom every year, but it is updated over time.
Whatever software you use for EDI will need to keep up with those changes, or your EDI communication will fail — which defeats the whole purpose.
While these are some common challenges of EDI, the pros far outweigh the cons. If you can meet these challenges, you can transition into EDI efficiently and enjoy the benefits from the start.
Why is EDI integration important in the workplace?
Benefits aside, why is EDI integration important in your workplace?
For starters, it might be a genuine necessity. If your suppliers and/or clients are utilizing EDI, it might be a case of keeping up or being left behind. After all, purchase orders and invoices are essential documents. If you can’t send and receive them according to business standards, your business will suffer.
On top of that, EDI can assist your workforce with a number of aspects of daily work. The automation tied to EDI can remove busy work from workers and enable them to focus on more important tasks.
EDI integration can also make information more accessible to employees as needed. It can roll into statistical tracking and data analytics. This makes it an integral tool for data tracking, data reporting, and data security.
Overall, EDI can streamline workflows that are often interrupted by slow communication issues and improve the efficiency of your business.
Improve your business processes with EDI integration
EDI is essential for your business if you want an automated exchange of electronic documents. But if you’re looking for EDI resources and aren't sure where to go, Mailchimp can help. Mailchimp is a digital provider with a wide range of tools and resources that you can use to manage your audience data and accomplish your business goals.
Take a look at everything Mailchimp has to offer and improve your business processes with EDI integration.