Tips For Better EDI Solution

If you are a supplier, distributor or a retailer, you understand that the entire supply chain is a complex one and things need to be done correctly. This is so because it has several elements that are inter-dependent and need to emerge at the same time. These elements include production, distribution, and procurement which are affected by external factors like market, demand, and supply.

Unlike in the past, the complexity of the supply chain has been further deepened by globalization. This means that there are emerging new markets, increased customer expectations, logistical challenges and highly individualized customer preferences. To manage this increasing complexity, many tech solutions have been developed and among them is Electronic Data Interchange system (EDI).

What is electronic data interchange system?

Today’s tech has advanced tremendously, and business owners love it because it allows them to automate their processes and become highly efficient. The supply chain has not been left behind because there is need to automate and streamline distribution activities.

EDI is a solution that automates electronic data exchange between businesses and business partners along the supply chain. Its benefits include improved accuracy, faster processing of information, low transaction costs and high compliance levels.

EDI standard formats and languages include ANSI, EDIFACT, TRADACOMS, and ebXML. Business partners should agree on the format before the data between the respective computer systems can be exchanged.

Is your EDI solution good enough?

Now that you have invested in an EDI solution for your business, are you getting the value for it? While EDI has many benefits, it is important to know that not all EDI services are equal and you will simplify your business processes only if you work with the right solution. So, is it time to thank your EDI service provider or make the necessary changes?

The following considerations will help you to make a right decision:

  • Compliance with the industry standards and mandates
  • Support a variety of EDI formats including the new ones
  • Scalability to meet the requirements of future growth of your business
  • Security to avoid a data breach
  • Display of transaction status in real time
  • Maintenance costs

If you happen to experience problems with your EDI solution, there is no need to go on with it because it will not serve its purpose as expected. This means that the tech will bring you frustrations instead of simplifying your business processes. The best solution is to look for a good solution cautiously so that you do not make the same mistake.

Choosing the right EDI solution

A good EDI solution should be capable of the following:

Meeting your integration needs

Choose an EDI solution that will integrate well with your business. This is to allow you eliminate manual processes that are quite expensive and embrace automation.

Reducing Transaction Costs

EDI solutions help you to reduce transaction costs and increase profitability. Depending on the costs, you should choose between in-house and managed EDI as well as a solution that is not expensive for your volume of transactions.

Providing excellent service and support

Just like you would not like to buy faulty equipment, the EDI solution that you choose should offer services that are said to be offering. Whenever you experience problems, the provider should always be there to provide the required support.

EDI is a good tech in managing the complexities that exist in the supply chain more so as a result of globalization. It is important however that you choose the right solution for your specific business needs.


Ana is an internet entrepreneur and one of the founders of iGuides, she loves to give adequate time to her passion which is writing. She holds a PHD in English Literature.

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