Running a supply chain company might seem like an easy job from far off, but it has its own share of challenges. For instance, the rising competition, lack of productivity, and efficiency, to name a few. Especially after the Covid-19 outbreak, the challenges faced by the supply chain seemed to increase.
If you run a supply chain business and are wondering how you can keep up with the rising competition and run the business successfully, this insightful blog is what you need. Our primary focus in this blog will be on a technology that is helping supply chain businesses to flourish. Well, we are talking about EDI.
Aren’t you aware of this term? Not sure what it is and how to use it? Well, let us answer these questions and clarify everything for you. All you have to do is read this blog to the very end and recognize how EDI is the technology you need to transform your supply chain business.
So, without any further ado, let us start with understanding the term in brief. Here we go!
What is EDI?
EDI, which stands for electronic data interchange, is an inter-organizational information system that facilitates the computer-to-computer exchange of data among multiple business trading partners. EDI lets businesses collaborate more efficiently with suppliers and eliminates inefficiencies and manual interventions. Whether a small number of SMEs or a large number of suppliers located globally, EDI takes care of any kind of business requirement and provides the necessary support.
How do EDI integration support supply chain companies?
Now, to understand how using EDI is helpful for supply chain companies, we will proceed and discuss the remarkable ways EDI redefines supply chain management. So, let’s get into it!
Faster document processing
The best thing about EDI integration is that it eliminates the need for manual documentation. As a result, all the transactions in the supply chain speed up at significant volumes. This also facilitates more cash flow.
Greater accuracy
EDI is known for improving the overall accuracy of the supply chain; we will tell you how. Here’s a simple truth- when humans input data manually, there are high chances of certain errors and flaws. However, when technology takes its place, these risks are eliminated as all the data is exchanged electronically. As a final result, the overall accuracy increases manifolds.
Cost and time saving
Paper-driven processes and manual documentation takes much more time as well as costs. Moreover, manual documentation involves many repetitive tasks such as processing paper documents, printing, copying, delivering, filing, and storage. These tasks are eliminated when you upgrade to an EDI solution.
Enhanced inventory management
EDI standardizes transactions and improves transparency throughout the supply chain. This enables the companies to quickly know their partner’s inventory status and keep everything under check. In addition, EDI integration also results in quicker document processing and allows the suppliers to manage the inventory well.
Better customer experience
Streamlining customer interaction with EDI helps a lot in faster product fulfillment, enhanced order accuracy, and reduced uncertainties like running out of stocks. All of these ultimately result in a better end-to-end customer experience. Moreover, when customer experience improves, so do the retention rates.
It gives a competitive edge.
Better efficiency, cost-effective transactions, enhanced inventory management, improved partner relationships, and better customer experience all this is possible with EDI. Hence, when it has this much to offer, EDI very obviously provides the supply chain companies a competitive edge in the cut-throat competitive markets.
A step towards sustainability
Adopting EDI in supply chain management is an excellent step towards sustainability. This is because EDI integration reduces the need for paper documentation as the data transfers happen online. Thus, EDI doesn’t just streamline the data transfer but also contributes to reducing the waste generated by the paper industry.
Real-time updates
EDI is well-known for helping companies maintain their inventory levels and ensure they meet the immediate demand without fail. Thus, with the real-time updates about the inventory, supply chain companies can use the latest information to the best of their benefit and run the business without any unforeseen adversity.
What does the future of EDI for 2022 look like?
As we discussed the many advantages of EDI for supply chain businesses, we get to understand that the future trends of EDI for supply chain management will transform the companies big time. Moreover, as new trends keep coming up all the time, EDI will become more prevalent in the supply chain in the coming years.
If you wish to know about the promising future trends of EDI and API in supply chain management, here they are-
Merge of API and EDI
API and EDI together are coming forward as a solid future trend for supply chains. API has several benefits, such as offering communication flexibility and exchanging data with cloud-based apps. Thus, the merge of API and EDI will be quite impactful for supply chain companies.
Emerging technologies
When merged with EDI, modern technologies like IoT, blockchain and AI will solve new challenges in supply chain management. This solid union will result in cost reductions and increased ROI.
Growth of eCommerce
The unstoppable growth of eCommerce is helping supply chain businesses prosper in a never-like-before way. If you have an eCommerce store or business and want to maintain a well-integrated supply chain, then EDI is the way to go.
Concluding words
EDI, its benefits, and its advantages fulfil one purpose in the supply chain- keeping the business ahead of everyone. That is also the prominent reason supply chain companies are not leaving any opportunity to transform their business and lead the industry the right way. If you are convinced of the advantages of EDI and are more than excited to use this technology in your business, there’s no stopping you from reaching a broader network of trading partners. So, adopt this technology now and witness your business skyrocket in front of your eyes.
