Electronic Data Interchange is a standard electronic format that replaces paper-based documents such as purchase orders or invoices. By automating paper-based transactions, organizations can save time and eliminate costly errors caused by manual processing.
In EDI transactions, information moves directly from a computer application in one organization to a computer application in another. Data can be shared rapidly instead of over the hours, days or weeks required when using paper documents or other methods.
There are 5 key business benefits that EDI technology delivers:
– EDI technology saves time and money through automation of a process previously manually executed with paper documents.
– EDI solutions improve efficiency and productivity because more business documents are shared and processed in less time with greater accuracy.
– EDI data transfer reduces errors through rigid standardization, which helps to ensure information and data are correctly formatted before they enter business processes or applications.
– EDI integration improves traceability and reporting because electronic documents can be integrated with a range of IT systems to support data collection, visibility and analysis.
– EDI automation supports positive customer experiences by enabling efficient transaction execution and prompt, reliable product and service delivery.
You can read more about Electronic Data Interchange here.
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