What EDI Integration Is and How It Can Benefit Your Business

Integrated EDI can reduce order processing times by 75%, enhance business operations, and minimize errors associated with manual data entry. To understand Integrated EDI, we need to first understand the meaning of Electronic Data Interchange (EDI).

EDI is the standardized exchange of business documents, such as orders, invoices, and status messages, from one computer system to another. This process allows businesses to effectively share orders and delivery status quickly and reliably, freeing up employees’ time, increasing value-added tasks, and gaining access to all aspects of the business and transactions.

Integrated EDI is a software solution created for exchanging supply chain messages. This tool enhances the connectivity between trading partners by seamlessly linking business systems, such as ERP solutions.

By Integrating EDI into your supply chain, the translation and communication of electronic documents will be handled efficiently. Messages are sent from backend systems to your Integrated EDI partner, where they are translated and forwarded to your business associates. This means an EDI system is not required, as this service is provided through a SaaS solution, ensuring streamlined and efficient communication between companies.

Integrated EDI has proven to have more significant benefits than other EDI solutions. Integrated EDI allows for a higher level of synchronization, establishing smooth data flow and better visibility across the supply chain, boosting business efficiency.

When considering Integrating EDI into your company's back-office systems, it is important to understand all the benefits. Here are the five main benefits of Integrated EDI.

The automation of processes with Integrated EDI enhances operations, enabling businesses like retailers and wholesalers to handle larger volumes of transactions. This automation reduces the likelihood of errors that are common in paper-based processes, leading to more accurate data and improved workflow. As a result, companies experience fewer errors, saving both time and costs.

Integrated EDI ensures that data remains accurate and reliable throughout the operation by automating processes and eliminating manual data entry.  Bad data management and failure to provide correct data can affect EDI processes. It is crucial for companies to ensure data accuracy for seamless and error-free EDI processes. EDI enhances data integrity as systems communicate directly with each other. This results in more accurate inventory levels, order processing, and customer information.

It is crucial to handle this data securely, which is why EDI systems are designed with robust security measures to protect sensitive business information. Thanks to secure data transmission protocols and authentication processes, companies are better protected from data breaches and unauthorized access by integrating EDI.

Integrated EDI simplifies real-time data exchange between business partners, ensuring all parties have the most current information. This enhances decision-making, reduces delays, and improves communication in the supply chain. For example, Poiesz, a Dutch supermarket chain, achieved error-free and transparent communication with all its suppliers thanks to Integrated EDI.

These communication services bring visibility into the supply chain, leading to better coordination and collaboration among suppliers, manufacturers, and retailers. This visibility assists in identifying potential issues early and facilitating problem solving.

As mentioned previously, process automation reduces paper-based documentation and manual data entry, leading to increased savings and decreased operational costs. Integrated EDI is also capable of enhancing inventory management by supplying accurate data on stock levels. As a result, businesses can optimize their inventory management, lower holding costs, and improve cash flow.

EDI Integration allows companies to grow without being constrained by their data exchange capabilities. As transactions increase, EDI will handle additional information without requiring any significant infrastructure changes.

EDI not only supports scalability but also adapts to evolving business needs and market conditions. This flexibility ensures your business stays competitive and responsive to industry changes.

HEMI, a company specializing in serial and modular interior design for retail, healthcare, and leisure, required a solution to improve order processing. Their challenge was integrating their customer’s EDI for DIY with HEMI’s ERP software.

Previously, HEMI received orders via email or fax, which were manually entered into the system. This posed a risk of errors and was also time-consuming. The solution was to implement EDI with the help of the Descartes team.

After eight months, the EDI Integration was successfully completed, speeding up processing times and enabling smoother collaboration with their partner.

Many companies require their suppliers to use EDI to exchange business documents such as orders, delivery notes, invoices, and more. But what is the best solution for your organization?

Descartes has over 40 years of experience and is an industry leader in providing EDI solutions. We can advise you on the use of EDI within your processes. Short implementation times and a transparent cost structure give you insight and clarity on what you can expect from us.