We live in a digital age. More than 79 percent of Americans shop online regularly, and even those who don’t likely rely on a computer for at least some of their daily functions. The highest adopters, both as individuals and professionals, have come to rely on computers, software, and digital assets for almost all their needs, forgoing paper and manual processes in favor of something more efficient and less expensive.
If your business hasn’t adapted to keep up with this new standard of operation, it’s going to fall behind—and sooner, rather than later. That’s what electronic data interchange (EDI) is all about—but before you can use it to transform your enterprise, you need to understand what it is and what it’s supposed to do.
EDI is a computer-to-computer transaction of business documents that were previously exchanged in a paper format, now using a standardized electronic format. For example, rather than sending a purchase order (PO) or an invoice through the mail, businesses using an EDI system would be able to send those documents online, replacing methods like traditional mail, fax, or even email.
There are several “standard” formats for this exchange, but each of them shares a similar purpose. When the format is the same between exchanging parties, or when the format can easily be altered, those documents can be incorporated into any other software that needs to make use of the information in those documents. This makes it far easier for businesses to communicate key pieces of information.
These are just the basics, so if you’re looking to learn more, 1EDIsource has an excellent, thorough guide on the subject.
Why It’s So Important
So why is EDI such an important upgrade to make?
- Cost savings
First, you’ll save money on whatever method you currently use to transmit documents. Depending on your current systems, you could save at least 35 percent on your total expenditures.
- Speed and accuracy
EDI also transmits documents faster. Compared to traditional mail, you’ll save several days of transmission time when placing a purchase order or sending out an invoice. Compared to email, you’ll be on par—but you’ll also reduce your error rate. Since you’ll be following a standardized format and transmitting with a reliable system, you’ll suffer fewer miscommunications.
Much of EDI is automated, which means you’re going to save time and improve productivity. Employees can easily follow the templates offered by your EDI system rather than manually filling out new documents, then use the extra hours they save to do more productive work.
- Strategic insights and possibilities
Finally, relying on an EDI system affords you real-time monitoring and transparency on your document transmission status. You can also review data over time, and use those data to make more impactful strategic decisions. With EDI in place, you may even be able to enter new markets or engage in new types of business altogether.
How to Begin an Upgrade
So how should you go about transitioning your current system to an EDI system? That depends on what current system you’re using, which systems your partners are using, and how much you’re willing to spend. With an unlimited budget and unlimited time, you could hire your own EDI developers and build an entirely customized system from the ground up.
However, most small- to mid-sized businesses will benefit best by working with a third-party EDI specialist that already has a solution in place. Explore your options, and give each system a trial run before you finalize your decision.
If Online Privacy Is Dead, Is There Anything We Can Do?
The online world is both wonderful and frightening in equal measure. On the one hand, we have access to unlimited information and resources, but on the other, we have zero privacy. For most adults, the internet is a part of every aspect of their daily…
Reason To Choose Comodo SSL Certificate To Secure Your Website
It should be clear by now that for your website to survive in this modern era, hacker ridden internet era, it is important for all the information that go on it or through it to be encrypted. To have a website without SSL protection is…
6 Unexpected Security Concerns, and How to Prepare
As powerful as the Internet is right now, it’s impossible to even imagine where it will go over the next years and beyond. But, as fast as security protection continues to improve, hackers seem to improve even more quickly. Everything from new devices to apps…
Your Business Needs These 13 Digital Security Solutions – Here’s How To Get The Most Out Of Each
How would you characterize your organization’s digital security posture? If you’re not sure how to answer this question, or perhaps would prefer not to answer it at all, you’re not alone. Countless decision-makers, from uber-competent CTOs and CISOs to CEOs and COOs who couldn’t code…
Louisiana And Oklahoma Introduce Digital Identification To Prevent Fake ID Use
Digital ID in Louisiana Utilizing digital IDs has been a commonly broached topic for a while now. Although most states are only either deliberating their helpfulness or in the utmost initial stages, Louisiana has moved forward. The primary introduction of this technology was done back…
- 3D Printing
- App Dev
- Artificial Intelligence
- Arts and Entertainment
- Big Data
- Blockchain Tech
- Business Technology
- Car Technology
- Cloud Computing
- Cloud Storage
- Computer and Technology
- Conference Calling
- Coupons and Deals
- Cyber Security
- Dark Left 1
- Data Center
- Data Recovery
- Digital Arena
- Digital Marketing
- Edu Tech
- Email Marketing
- Google Glass
- Guides and Tutorials
- Health and Fitness
- Home Appliance
- Home Improvement
- Home Security
- Internet and Businesses Online
- Internet Marketing
- IT Careers
- Mobile Apps
- Mobile Security
- New Tech
- Online Shopping
- Project Management
- Reference and Education
- Reputation Management
- Sales & Marketing
- Shopping and Product reviews
- Small Business
- Social Media
- Tech Trends
- Technical Support
- Technology in Education
- Tips & Tricks
- Tips And Tricks
- Video Conferencing
- Virtual Reality
- Wearable Technology
- Web Design
- Web Development
- Web Hosting
CBD Cigarettes Better Than Standard Cigarettes
Hemp Vs. Tobacco Contents Of CBD CBD consists of more than 99% pure hemp and 0.03% of THC. Hemp compound is associated with many health benefits. It is usually incorporated in CBD oil, capsules, edibles, and CBD joints. Tetrahydrocannabinol is the component related to toxicity….
Why Software Shortcuts Are Worth Memorizing
Every software program has keyboard shortcuts for convenience, but it’s cumbersome to memorize them all. Even the standard keyboard shortcuts for copy, cut, and paste were foreign to everyone at some point and took time to commit to memory. It feels overwhelming to think about…
3 Ways to Prepare For Cyber Security Risks That Employees Must Know
In a world where everything is much easier to do via mobile, app, or device, technology is not going to slow down. We’re all guilty of potentially owning more than one device, whether that is our personal phones, work phones, tablets or fitness trackers. All…
Non-Negotiable Elements For Your Business IT Security Plan
In 2019, having a business IT security plan is more important than ever. An IT security plan is the first line of defense you have for protecting your business – and your clients – against cybercriminals. Cybercriminals include hackers, who frequently obtain personal information with…
Businesses Need To Be Proactive When It Comes To Cyber Security
For business of any size, making sure they are not only compliant with security regulations but continually improving and adjusting the measures they have in place is vital. Quite often the factor which determines how a business approaches cyber security is the mindset of the…
How To Become A Cyber Security Analyst
What is Cyber Security? Cyber security is the practice of protecting a system or network from digital attacks. These attacks are generally aimed to retrieve or destroy sensitive information and it is a serious threat to all the organizations. Who is A Cyber Security Analyst…