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  • Evan Leung

What is EDI and how can it benefit your organization?

Electronic Data Interchange, or EDI, is the transfer of business documents electronically between two trading partners in a standardized format. This process eliminates the need for paper-based documents and manual entry of data, reducing errors, and improving efficiency.

EDI has become more widespread with the growth of the internet and the need for companies to streamline their supply chains. EDI can be used for a variety of business documents, such as purchase orders, invoices, and shipping notices.

The benefits of using EDI include faster processing times, improved accuracy, and reduced costs. By eliminating paper-based documents and manual data entry, companies can process transactions more quickly and with fewer errors. This can lead to faster turnaround times, improved customer service, and increased productivity.

In addition to these benefits, EDI can also help companies improve their relationships with trading partners. By using a standardized format, companies can ensure that their trading partners receive accurate and complete information, which can help to build trust and reduce the risk of disputes.

EDI is not without its challenges, however. Setting up an EDI system can be complex and time-consuming, and there can be issues with compatibility between different systems. In addition, there may be resistance to change from employees who are used to working with paper-based documents. Despite these challenges, many companies have found that the benefits of using EDI outweigh the costs.

If you’re interested in learning more about EDI, please reach out as we extensive experience implementing EDI solutions in various industries such as healthcare, manufacturing, retail, and more using partnered technology products such as Informatica.

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