Sharing documents and processing them quickly is crucial for business success, many companies are still relying on email, snail mail, and even fax machines. However, such old-school methods are prone to mistakes and delays that damage your business.
One alternative solution is Electronic Data Interchange (EDI). Integrated EDI systems allow instant sharing of standardized documents between a business and its partners.
Keep reading to learn what EDI offers in today's digital world and discover how to maximize its benefits with advanced automation tools.
EDI capability means you can electronically share all sorts of business-critical documents, such as purchase orders, invoices, and shipping notices, directly with partners in a standardized digital format. Rather than relying on manual processes like emailing, faxing, or mailing, EDI-enabled organizations can transmit information directly between business systems.
Much like the necessity of 3-way match processes in accounts payable, EDI is seen as a strategic imperative for businesses navigating increasingly complex, data-driven markets. Among other advantages, EDI helps to:
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Implementing a comprehensive EDI solution delivers a range of strategic benefits that drive operational efficiency, cost savings, and tighter supply chain coordination across the business. Let’s take a closer look at how EDI helps you:
In competitive markets, impressing customers separates the good from the great. By streamlining information exchange and fulfillment through EDI, your service will delight buyers with unmatched speed and accuracy and increase customer satisfaction.
EDI ensures accuracy by standardizing formats and establishing comprehensive audit trails. You can confidently meet stringent financial reporting and regulatory requirements knowing your data is always handled securely.
The seamless flow of information between trading partners provides end-to-end supply chain transparency and enables businesses to make more informed, data-driven decisions.
The elimination of manual data entry tasks and reduction in data entry errors, processing mistakes, and disputes provide significant cost savings.
Long billing cycles strain cash flow and supplier relationships. EDI accelerates your order-to-cash process by automating invoice and payment document exchange, ensuring suppliers are paid promptly, and improving cash flow management.
EDI automates the secure exchange of critical business documents like purchase orders, invoices, and shipping notices, eliminating manual, error-prone processes. This increases productivity and accelerates cycle times throughout your organization.
Revere Electric saw remarkable results when it used Conexiom's automation platform to enhance EDI. The technological partnership accelerated order cycle time, eliminated costly returns, and saved 80-95% of the time spent entering orders, allowing the company to dedicate more time to customer service.
Getting an EDI system up and running involves several key steps. Here's a brief guide to implementing EDI for your business:
Evaluate your organization's existing data exchange processes, trading partner integrations, and technological infrastructure to identify any gaps or bottlenecks that could be improved with EDI.
Clearly outline your business objectives, trading partner needs, typical transaction volumes, formatting, and technical specifications to guide the selection and implementation of an EDI solution.
Do your research into potential vendors based on criteria such as connectivity, customization abilities, data mapping, compliance features, and ease of integration with your ERP and other core systems.
Onboard and integrate your key trading partners into your new EDI system. Ensure data flows smoothly by establishing shared protocols, guidelines, and system standards for everyone to follow.
With the right EDI platform selected and partner connections configured, it's time to implement and rigorously test your end-to-end EDI workflows and processes before full-scale deployment. Validate accuracy, reliability, and systems integration.
The work isn't done after going live. Regularly review EDI performance metrics, identify areas for improvement, and make adjustments to streamline operations, capitalize on emerging best practices, and keep your EDI running smoothly.
While EDI was a huge step forward when first introduced in the early 1960s, technology has advanced rapidly, and the approach is now becoming outdated compared to more modern solutions. Let’s take a look at where EDI falls short.
It’s a mistake to ignore the many advantages of EDI, but continuing to use it in the traditional way increasingly leaves gaps in your processes. The Conexiom platform is designed to enhance the capabilities of the systems you already have in place, including bridging the gaps left by EDI.
Unlike EDI, which requires partners to purchase, install, and maintain compatible systems, Conexiom allows your customers and suppliers to continue doing business via emails, printed documents, faxes, or whatever methods they prefer. Meanwhile, behind the scenes, the Conexiom platform handles everything with intelligent automation.
Conexiom leverages cutting-edge technologies like artificial intelligence, machine learning, and automated validation to extract information from emailed and printed/faxed documents with 100% precision. It also seamlessly integrates with your existing core platforms including EDIs, ERPs, accounting packages, and procurement systems.
Conexiom allows the quick electronic onboarding of new partners within minutes, benefiting those without EDI capabilities. By enhancing your existing EDI investment, Conexiom closes the digital automation gap and allows your businesses to focus on delivering superb customer experiences, slashing operational costs, and growing revenue without additional headcount.
Learn more about how you can achieve an Amazon-like experience for your industrial B2B sales processes. Request a personalized demo of the Conexiom platform today and experience how our AI can transform your document automation capabilities.