The Benefits That Can Be Derived From Using EDI

By Peggie K. Lambert


Many firms need to be original in all areas of their service, especially in the communication department. That is the reason why EDI (also known as Electronic Data Interchange) has emerged as a hot topic for firms generally. The paragraphs below demonstrate why this is the case.

First, it is always helpful to know exactly what we are talking about. Basically, Electronic Data Interchange is a process of communicating business documents in a standardized manner between businesses. This description covers the essence of what the process is all about.

Essentially, this means the company documents are sent from one computer to another. This may seem no different to sending information via e-mail. Nonetheless, the difference is that though you can adapt e-mail to suit yourself, EDI follows a business protocol that is standardized.

Therefore, the documents that are transferred must be proficiently put together and follow business standards in how they are made. You cannot employ the more infamous aspects of e-mail communication, like emoticons or text slang. Such documents have to follow the same protocol as a hard copy document would.

The advantages of this procedure are substantial, which is why it is now such a hot topic. The savings that are made on paper for the companies that are using this procedure are considerable. From a purely fiscal point of view, then, EDI is obviously the way forward.

It is not just the costs of printing paper documents and invoices that are minimized here, though. Because the documents are transmitted electronically, they end up getting to the recipient in much quicker time than would otherwise be the case. Time saved is money saved, obviously.

As less time is spent on sending documentation and invoices to those who should receive them, more attention can be paid to their content. That will lessen the risk of any mistakes being made in that content. And this is further minimized by following the standardized business protocol.

Compare this with the paper based route, where you have a turnaround time to get a document to a recipient. In this case, you are rushing to ensure that it is issued in enough time to meet a particular deadline. And when this happens, the chances of a mistake being made increase exponentially.

In addition to the company benefits, you also accrue a significant public relations boost by adopting this procedure. If you depend on electronic communications in preference to paper based communications, you are having a less negative impact on the environment. And as the environment is such a public concern these days, your image can only be enhanced in the public eye as a result.

To sum up, EDI confers a substantial number of strengths to its users. So you would be wise to inform yourself quickly as to what those strengths are. If you adhere to the advice presented in the foregoing, you will be unlikely to make a bad move and your firm will be bolstered in financial and public relations terms.




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