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May 4, 2015 3:39:00 PM
Category: EDI

What Is EDI Automation?

In today’s environment, one of the most important things is exchanging data in a professional and reliable manner, so businesses are always on the lookout for better, more professional technologies that can be used in order to get the upper hand.

What Is EDI?

Also known as electronic data interchange, EDI is a framework that allows businesses to exchange documents from a computer to another via a standard electronic format. EDI has been around since the 60’s and since then it has continually evolved with the help of the latest technologies, arriving where it is today.

EDI provided lots of benefits when it first appeared, because it allowed companies to move from a paper exchange and lots of hassle to the electronic world, where people manage the items and solutions a lot faster. At the same time, EDI makes the teams to work closely and in a more professional manner.

Some of the main benefits that come with EDI are the faster processing speed, as well as reduced errors, lower costs that come with sending and processing files, but maybe the most important thing is that the relationship with the business partners are improved exponentially.

Who Are The Players In EDI?

EDI includes 3 different players that you have to take into account at all times. First of all, you have the EDI VAN that is basically the Value Added Network. This is the middleman, basically the one that facilitates the transaction between the vendor and the client. The EDI VAN is crucial for any EDI transaction, and this is why it basically provides a lot of value.

The second major player in the case of EDI is the vendor. Vendors on their own come in all shapes and sizes, but most of the time they are the manufacturers. The last one, and maybe the most important in the whole transaction is the trading partner, which is basically the store towards which you are shipping to. So, the product goes from you, the manufacturer, goes through the VAN and then continues onward to the trading partner.

Why Is EDI Used And Is It For You?

EDI is basically a way that allows you to automate orders. Despite the fact that many companies are still using APIs, the EDI infrastructure is very efficient. If you have a large amount of work volume and orders, then EDI might be the best decision that you can make.

The best way to see if EDI is suitable for your business or not surely comes from the profits that each customer provides. Sometimes there are customers with massive orders, while others have few orders, so EDI is not that suitable in their case. If you do have a lot of orders however, and the volume justifies it, the EDI is definitely the way to go, since it brings in front all the benefits that you would expect for your business, streamlining the workflow and the volume to bring in front the necessary results.

It can be a little hard to integrate EDI, since you first need to ensure that you afford the costs first. These costs are usually based on two variables. The first one is the dealer or VAN that you have to work with, as well as the amount of trading partners that you integrate. If you work with more, the integration does make sense and it’s affordable. The amount of files used however does raise the costs, because the more files, the more expensive the EDI will be. A good idea is to integrate only the files that are needed, and lose the ones that don’t have a major importance.

What Are The Cons Of EDI?

As you can see, EDI does bring quite a lot of benefits to the company, but at the same time there are a few cons which you need to take into account. The major downside for many comes from the fact that you do need to spend a lot of time with the setup process, and at the same time it can be pretty costly too. Also, EDI won’t make sales like many too, it’s just a tool to streamline the process, the quality of your products or services are the ones generating orders.

Another problem with EDI is the fact that it basically allows charge backs. If something happens and the customer doesn’t like the quality, he can immediately ask for a chargeback, which many times can lead to a cuts in to your profitability that you might not expect at all.

Integrated Vs Portal

The integrated solution is very good in a variety of situations mainly when you have to deal with few orders, when you can attend to them manually and there is no need for external help. On the other hand, if you are encountering situations with a lot of orders and the need to manage them efficiently, perhaps in a more automatic fashion, then in this case the portal is the way to go for sure.

Does Orderbot Have EDI Pro Services?

Yes, Orderbot does offer EDI Pro services, as numerous customers come to us and receive the best results fast. Since many do not know what EDI is or what it can do, we are a great solution since we remove the hassle. At the same time, we are also nailing down the necessary documents in order to make them compliant and optimize the order flow!

Is EDI Something All Businesses Should Consider When Selecting Order Management Software?

Yes, EDI actually is one of the best solutions that you can use if you want to grow your business and optimize the workflow. EDI makes your business more productive, it provides it with a goal and a method to run in a more efficient manner.

In conclusion EDI is a great addition for any business, and, if you implement it properly, you are bound to receive a lot of profitability for your business thanks to it. All you need is to improve your workflow and bring EDI in efficiently, then you are bound to obtain the results you seek!

 

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