What is Electronic Data Interchange?

How do I decide if EDI is right for my business?

Ask yourself these questions:

• Do your customers or suppliers prefer to use electronic data interchange? Do they require it?
• Do you exchange a large volume of standard business documents with other companies?
• Do you want to reduce the time and cost of manual data entry and document processing?
• Do you want to make your business transactions more accurate and secure?

How does EDI compare with traditional methods?

Electronic data interchange can help you save a great deal of time and money. Let’s look at what happens when you send a purchase order:

How will your business benefit from EDI?

1. Greater Speed and Efficiency 
   Users can create, send, and receive multiple documents in seconds—instead of hours—then switch their focus to higher-value tasks. Electronic data interchange replaces slow, manual processes with an automated system for sharing information. 

2. Improved Accuracy 
   No more typos. No misinterpretations. Built-in rules, standardized data formats, and codes ensure that documents exchanged are accurate and complete. Inconsistencies are flagged automatically so you can rectify issues immediately. No more human error—or its costly downstream consequences. 
   
   
3. Lower Costs 
   You reduce the cost of labor because you eliminate slow, manual processing. You save money on printing, paper, stamps, and storage. You avoid fines, SLA violations, refund requests, and chargebacks because you have fewer mistakes and delays.
   
   
4. Enhanced Security 
   Electronic data interchange ensures secure data exchange through encryption, authentication, and access control. That’s why HIPAA, the federal law that created national standards to protect patients’ health data and insurance information, encourages EDI in the healthcare system. 
   
   
5. Better Data Visibility 
   EDI data is easier to store, access, and analyze than physical documents. And that makes it easier to identify trends and patterns, leverage your data to make better decisions, and drive continuous improvement. 
   
   
6. Seamless Integration 
   EDI breaks down silos and enhances collaboration because data can be easily shared within—and outside—your company. It’s easy to integrate EDI with your ERP, CRM, and other business systems, automate repetitive B2B transactions, and gain a holistic view of your operations.