Fri. May 24th, 2024

As each year passes there are more and more businesses which are converting to an EDI system based purely on the wide array of benefits which this is able to offer so many industries. The electronic data interchange system is not particularly new, in fact we have seen it used in shipping and logistics for decades. There have however been key advancements in the technology which is used in EDI, this as well as a reduction in running costs is what has attracted businesses big and small to use such a system. If you are not sure whether or not this is going to help your business, take a look at these benefits and then decide.

Massive Cost Savings

One of the biggest and most compelling reasons as to why you should look at utilizing an EDI system for your business is because of the enormous cost savings which you can count on when you do. Firstly you are looking at big savings with regards to the costs involved with paper, printing, storage, filing, postage and the retrieval of documents. Recently we saw a major electronics manufacturer suggest that the cost savings of a manual order vs an EDI order was more than $30. There are also cost savings which can be made in the prevention of errors and lost orders, which will no longer happen.


Increased accuracy of orders is another key benefit of an EDI system. As we have just mentioned this certainly helps to reduce the costs of mistakes but there are also additional benefits to increased accuracy. For example you can improve business relationships through minimizing mistakes, you can increase the reputation of your business too based on its high accuracy and professionalism.


It is not just the accuracy of orders that will increase but also the speed of an order. Recent studies show that EDI can speed up the business cycle by 61% and that it can reduce the order-to-cash cycle time by almost 20%. Just imagine how your business partners would feel when they see that you have implemented a system which was able to increase the speed of your business in this way.

Business Efficiency

Ultimately this is a system which is going to be vitally important in terms of making your business more efficient. Taking away the manual handling of orders will ensure that your staff are able to focus on what they should be doing and what they are best at. The increased speed and accuracy of orders means that you can take on higher volumes and it also ensures that you are delivering great customer service to your clients. This type of system also lends itself perfectly to the better management of inventory levels that once again take the efficiency of your business and its operations to the next level.

With so many benefits it is very easy to see why we are seeing the implementation of EDI systems into companies and sectors around the world.

By David Smith

I am David Smith - a professional copywriter and content strategist. I am helping businesses with content marketing and digital marketing services so that they can start seeing the tangible ROI quickly. I love reading books and car racing.

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