The problem addressed by EDI software

Without EDI software, companies will send transaction documents such as purchase orders, invoices and shipping notifications via mail, fax or email or email. This exchange between companies can be very time consuming especially when doing large transactions volumes with the same company. In this scenario, a company typically enters data into business management software application, prints a form containing the data (such as a purchase order or an invoice), and mails, faxes or emails this document to a trading partner (customer, vendor or warehouse). The trading partner, after receiving the document containing the data, must then re-key the data into their business management software application. This is time consuming and could cause the following potential errors due to manual data entry:

  • Lost revenue due to incorrect billing
  • Charge backs assessed by trading partners
  • Added expenditures required to correct mistakes
  • Delays in orders being processed
  • Damage to reputation/client relations

The benefits of using EDI software

Companies that are EDI compliant and enabled, can send and receive business documents electronically with their trading partners. The digital exchange of data is facilitated using computers networks, and most if not all of the associated business processes (such as data population and verification) can be automated so that they occur with little or no manual intervention. Key benefits include:

  • Reducing or eliminating data entry errors
  • Processing transactions faster
  • Streamlining transaction processing
  • Saving time when sending and receiving business documents
  • Receiving payment as much as 30 days sooner than those sent via fax
  • Improving cash flow and mitigating the need to borrow money

Contact us to learn more about EDI Software and Compliance.

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