Electronic Data Interchange
EDI enables a commonly understood and standardized format of the relevant data to be transmitted from one computer system to another with minimal human intervention.
EDI transactions are structured for highly automated processing. Value Added Distributors uses EDI to transmit orders and invoices between companies. The electronic transmission of these transactions is an efficient means of conducting business.
Advantages of EDI
EDI provides an efficient means of getting the correct information quickly as possible. An order can be received within minutes of creation, leading to faster delivery times. Shortened delivery time allows for reduced inventory. EDI saves time by eliminating the overhead of the paper handling that is required and is otherwise necessary for both customer and vendor.
The cost of mailing and handling paper documents is completely avoided when the documents are sent electronically.
Personnel at both ends of the electronic transaction that would otherwise be involved in the handling of paper information can be redeployed to other tasks. There are fewer people required to monitor and administer the EDI system than is necessary to process paper documents.
EDI reduces the number of times the same data needs to be redundantly entered into multiple computer systems. This eliminates manual order entry and data entry errors.
There is also the inherent efficiency and improved accuracy from the electronic acknowledgment process that allows for the senders’ transactions to be verified and validated immediately upon receipt.
Electronic data can be sent anytime, day or night, to ensure the most accurate and timely information is delivered in an efficient manner. The EDI transactions can be scheduled to run when the computing resources are at a lower demand (i.e. during non-peak utilization periods).
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