EDI continues to prove its worth as an electronic message data format. There are a number of benefits associated with EDI, which helps buyers in handling numerous transactions, thus saving millions of dollars annually according to Act Data Services, Inc. 1-800-ACT-DATA.
EDI improves transaction speed and visibility while decreasing the amount of money that is spent on manual processes. Expenses associated with paper, printing, storage, filing, postage and document retrieval are all reduced or eliminated, thus reducing transaction costs by at least 35%. The cost of processing is also reduced from $38 to just $1.35, by using EDI.
EDI can speed up your business cycles by 61%. The transactions can be exchanged in minutes instead of the days or weeks. It improves data quality reducing the error in transactions by 40%, thanks to proper data mapping.
EDI improves business partner transactions and relationships by reducing the order-to-cash cycle time by more than 20%.
It helps in quick processing of accurate business documents that leads to less re-working of orders and fewer cancelled orders. Shortening the order processing and delivery times means that organizations can reduce their inventory levels
At the strategic business level, it enables faster decision-making and improved responsiveness to continued changing customer and market demands, thus allowing businesses to adopt a demand-driven business model.
Moreover, EDI provides a common business language that facilitates business partner anywhere in the world. It also promotes corporate social responsibility and sustainability by replacing paper-based processes with electronic alternatives. This will eventually help you save money.