With organizations are digitally transforming each day, electronic data interchange (EDI) has become important for the important B2B communications. Modern EDI solutions enable business users can speed up data exchange without putting a lot of effort. In simple words, EDI technology helps companies exchange data, in a standard electronic format, across multiple B2B trading partners. This enables users save a lot of money, make fewer errors, improve processing, and enhance partner or customer relationships. During the process, users and IT teams are the primary stakeholders:
- Business users that may include helpdesk, purchase, sales, and logistics teams are searching for the required information that can be accessed and maintained easily. EDI integration software solutions can support them and enable users make confident decisions with the aid of data-driven insights.
- The objective of IT teams is to satisfy all business users who are capable of handling large files and issues that get introduced in it so that IT teams can focus on other technical challenges. In addition, IT teams are looking for an easy, flexible, configurable multi-purpose tools to exceed new business requirements. Ergo, EDI integration solutions that can be set up in different ways, as well as scenarios, would be ideal.
In this blog post, there are three types of EDI integration processes based on myriad scenarios.
Direct EDI IntegrationÂ
In this type of integration, a direct connection between the ERP and organizations’ trading partner ecosystems using protocols. Among the trading partners, partners, customers, and logistic service providers are some of them. That can mean managing a plethora of connections, which can be tedious should a standardized protocol is absent. This can be a befitting option for heavy integrations that need a lot of data.
Indirect EDI IntegrationÂ
The indirect integration solution enables users exchange data via broker or value-added network (VAN), between various customers or suppliers and ERP systems. The information first flows out from ERP to VAN or broker. Then, the broker divides the message in particular formats as preferred by customers or suppliers and transfers it to them.
Hybrid EDI IntegrationÂ
A lot of companies pick solutions that provide a mix of direct and indirect EDI integration functionalities and capabilities. Hybrid EDI integration enables the exchange of messages in either a direct or indirect manner. This solution is required to be flexible in many areas of the processes and leverage tools to do so.
EDI integration solutions offer multiple benefits and add value to the business. Here are some benefits.
Improved Speed and AccuracyÂ
EDI integration solutions help business speed up the business cycles by 61%. They enable users execute transactions within a matter of few minutes unlike in days or weeks. In addition, since it is an automated solution, data quality improves, which ensures a 30 to 40% reduction in errors and eliminates discrepancies from lost faxes/mail and keying and re-keying errors. In short, EDI reduces the order-to-cash cycle time (by more than 20%) to strengthen business transactions and relationships.
Increased Business Efficiency
EDI enables business users savor the benefits of high business efficiency because it automates processing with ease and speed. This enables users focus on mission-critical tasks, increasing productivity by leaps and bounds. As the processing speed increases, companies can get rid of stock-outs and fewer cancelled orders.
As the data exchange processes become faster, supply chain ecosystems can ensure that business-critical data is transmitted and can be tracked in real-time. Truth is, EDI has a direct impact on myriad processes such as order-to-cash cycles and cash flow.
Enhanced Decision-Making
It’s evident that EDI offers real-time visibility into transaction status. Decisions are made faster without compromising accuracy. In addition, the responsiveness to changing customer as well as market demands witnesses a steep upward curve, ensuring delightful experiences to customers.
Enormous Cost Savings
Traditional methods for data exchange need tremendous effort and big capital. Enterprises can get rid of these problems by cutting down the expenses while printing, filing, document retrieval, etc. using EDI integration tools. As a matter of fact, EDI can lower transaction costs by almost 35%. Additionally, the issues pertaining to errors caused by manual judgement or lost orders, cutting down a lot of time and ultimately making organizations easier to do business with.
