Electronic data interchange (EDI) refers to a process where companies carrying on business activities with their trading partners are able to transmit vital information in a convenient format.The technology has been instrumental in the revolutionizing way businesses of various sizes conduct their transactions with their suppliers and customers. It reduces the need for such organizations to employ a large number of people to carry out labor-intensive repetitive tasks such as buying, printing, processing and finally delivering paper documents. This is help them to make their organization’s supply chain more efficient and cost-effective in the long-run. It also goes a long in enabling such establishments to do their bit to reduce their carbon footprints on this planet.

EDI Supply chain–4 key benefits it offers entrepreneurs of small and medium business establishments

Experts specializing in this field points out the effective use of EDI in their supply chain enable companies of various sizes to transfer numerous documents among their trading partners. These include customs records, bill of lading,inventory details, documents relating to shipping status and payment information. Incorporating a convenient EDI supply chain procedure within their business processes is a necessity of large corporate enterprises conducting B2B transactions with similar organizations. However, it is possible of entrepreneurs owning small and medium-scale establishments to enjoy the following the key advantages by adopting this procedure:

  1. Ability to exchange relevant business documents among their trading partners instantly

The use of an effective electronic data interchange supply chain procedure makes it possible for businesses to exchange necessary information among the trading partners.Moreover, the people operating such establishments transmit such data relating to the transactions they conduct in the marketplace securely and instantly. The absence of human intervention in this process also reduces the likelihood of errors.

  1. The environmentally friendly business process eliminates unnecessary wastes

An effective EDI supply chain procedure offers companies with a convenient alternative to use of paper for preparing vital business documents. This goes a long way in enabling such organizations to minimize unnecessary waste and cutting down of trees.

  1. Boost business relationship among trading partners

Electronic data interchange enables companies to streamline all forms of communications among establishments that constitute their supply chain. This improves the business relationship such corporate organizations maintain with their trading partners. This result in shorter sales cyclesand the time it takes to place orders. Such businesses are also in a better position to respond to the needs of their customers by offering superior service in a bid to boost their bottom-line profits.

  1. Better inventory management

Over the years, electronic data interchange technology has built up a reputation of enable companies of various sizes to maintain optimum inventory levels within their premises. This helps such organizations to meet the immediate demands for their customers for the products they deal in and maintain such adequate stock levels for the foreseeable future.  It also prevents shortages and problems which arise from holding excess stock.

The above 4 key advantages prove beyond any doubt that adopting an effective EDI supply chain procedure within their organizations is a necessity for entrepreneurs who want to stand out. Such a step can boost their business relations with their trading partners, enhance customers engagement and improve their bottom-line profits. This can turn out to be a win-win situation for them in the long-run.



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