Sunday, April 7, 2013

The Benefits That Can Be Had From Using EDI

By Peggie K. Lambert


A lot of businesses have to be innovative in all aspects of their work, particularly in their communications processes. It is for this reason that EDI (or Electronic Data Interchange) has become such a major issue for business in general.

First, it is always helpful to know exactly what we are talking about. Basically, Electronic Data Interchange is a process of communicating business documents in a standardized manner between businesses. This description covers the essence of what the process is all about.

Generally, this means that business documents are transmitted from computer to computer. You may think that this is no different to communicating by e-mail. However, the distinction is that while e-mail is a free format that can be adapted at will, EDI is standardized according to business protocol.

This means that the documents transmitted must be professionally produced and adhere to business standards in their production. There is no room for text slang, emoticons or other features of e-mail communications. These must be treated in the same manner as hard copy documents would be.

The benefits of this process are considerable, hence why it has become such a major issue. The savings in terms of paper expenses that have accrued for businesses making use of the process are substantial. From a bottom line perspective, therefore, EDI is clearly the way to go.

It is not just the costs of printing paper documents and invoices that are minimized here, though. Because the documents are transmitted electronically, they end up getting to the recipient in much quicker time than would otherwise be the case. Time saved is money saved, obviously.

Because less time is expended in issuing documents and invoices to recipients, greater care can be taken with their contents. This minimizes the possibility of any errors being made with the contents. And that is minimized further by adherence to standardized business practices.

Compare this with the paper based route, where you have a turnaround time to get a document to a recipient. In this case, you are rushing to ensure that it is issued in enough time to meet a particular deadline. And when this happens, the chances of a mistake being made increase exponentially.

As well as the business benefits, there is also a substantial public relations benefit to be had here too. Relying on electronic communication as opposed to paper communication reduces the likelihood of contributing negatively to the environment. In these more environmentally conscious times, this will do your image no harm at all in the eyes of the public.

In summary, there are a considerable number of benefits to be had from using EDI. And it is imperative that you make yourself aware of what these benefits are in short order. By following the tips outlined above, you are less likely to put a foot wrong and you will benefit your business both financially and from a marketing perspective.




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