Digital transformation has become a norm for businesses in pandemic times. The trend started when organizations had no choice but to switch to survival mode during the initial lockdowns. But it emerged as a game-changer in the new normal, making businesses smarter than ever. Electronic Data Interchange (EDI) is one of the key elements of digital transformation as it optimizes the supply chain by providing end-to-end visibility on inventory, orders, and shipments. The benefits of integrating this solution into your operations are immense, but many companies are yet to do it. Let us explain why every business should consider embracing EDI in 2022.
Reduces operating costs
With EDI integration, you can eliminate the cost of paper, printing, filing, reproduction, storage, and retrieval of documents. It is easy to imagine the savings you can make with the solution. It leads to massive cuts in administrative, resource, and maintenance costs. Not to mention, you get the advantage of sustainability by reducing the use of paper and resources. With cost-cutting being the need of the hour for businesses, there couldn’t be a better time to switch to EDI.
Accelerates transaction speed
Besides cost-savings, agility is another aspect organizations need to address in the new normal. EDI integration covers you on this front by accelerating transaction speed. It facilitates document exchange with your trading partners in only a matter of minutes. The system does not compromise on the speed, no matter how voluminous and complex the transactions are. You end up with shorter order-to-cash cycles eventually. It goes a long way in improving the cash flow of the business.
Pandemic or no pandemic, businesses aspire for productivity as it propels growth. The best way to achieve it is by replacing manual processes with automation. So What is Electronic Data Interchange? How does it become relevant to productivity? Incredibly, the smart system automates one of the most complex business processes. With EDI integration, you get the benefits of one-time data entry, reconciliation automation, and seamless reporting. The workload on human resources reduces, leading to an increase in their overall productivity.
Supply chain optimization increases accuracy at the order level by reducing bad data. Problems like incorrect prices, duplicate orders, and out-of-stock items persist when the system is handled manually. But EDI integration improves the data quality and eliminates the scope for human error from the entire process. Further, touchless document handling is also relevant in 2022 and beyond.
Streamlines business processes
EDI can go a long way in streamlining business processes across procurement and supply chain operations. Beyond the elimination of paperwork, electronic records enable a seamless flow of information with the trading partners. The integration brings immediate improvements such as accurate purchase order delivery and faster procure-to-pay cycles. The order fulfillment rates also improve down the line.
EDI integration can give your business a competitive advantage in the ultra-digital landscape. As your supply chain cycle strengthens, you can focus more on internal processes and trade partnerships. It may cost a bit, but makes a worthy investment for any business today and in the long run.