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What is EDI Capable and Why is it Important?

What Does EDI Capable Mean?

Electronic Data Interchange (EDI) can have a great impact on your team’s overall success. In simple terms, when an organization is EDI capable, it can send and receive electronic business documents in a specific format based on established standards. This allows for more streamlined communication with partners, vendors, suppliers and other customers. EDI provides an efficient, reliable, secure and established method of exchanging documents for all industries. Ultimately, to be ‘EDI capable’ is to have the power to transact with EDI vendors and suppliers anywhere in the world.

Though it sounds simple enough, many businesses don’t possess the ability to accommodate and leverage this important communication technology. In today’s business world, this presents a big problem. It’s crucial for an enterprise to be able to send and receive electronic documents like X12, HIPAA, VDS, Tradacoms and more. When your organization is EDI capable, you are at an advantage in the business world with a greater chance for success.

How can Your Business Benefit from EDI Capability?

Don’t be fooled. An EDI capable company can do so much more than just send and receive important documents. There are numerous ways your organization can prosper while utilizing EDI software. We’ve broken down the top 6 below:

Increased Efficiency and Accuracy through Automation

According to a ComputerWeekly.com study, workload automation can improve a business’s overall efficiency and help align business processes with customer expectations. Thanks to EDI software, that’s never been easier to accomplish. When your organization is EDI capable, any risk your company once had of data-entry errors is significantly lowered. Why? For starters, as skilled as your employees are, they are still human and can make mistakes. But with less hands-on processing, you get less data-entry errors. When it’s integrated with your business’s back-end processes, EDI software streamlines and automates data processing in a more efficient way with greater accuracy.

Ability to Transact with More Partners

When a software is as beneficial as EDI, it quickly grows in popularity. Businesses in the following industries continue to become EDI capable:

When your organization is EDI capable, you have an advantage to work with them and complete transactions.

Heightened Security

It’s always good to play it safe, and that’s especially true when it comes to your business. According to IBM, the average cost of data breaches per record can be anything from $129 to $355. EDI software is made to protect your organization from costly problems like this. How? It provides strict access of your company’s records to authorized users only. It’s also equipped with archive tracking and audit trails, so you can keep tabs on everything. This allows for securely shared data and assures transparency between business partners. Additionally, EDI software never modifies data during transit or storage. This means your transaction is received in its intended form and will stay that way.

Faster Processing Speed

Every part of the business cycle speeds up when your company is EDI capable, and that certainly includes processing documents. For example, the moment you receive something from another business, it’s immediately available in your system. This cuts down on the traditional time it would take for ordering and shipping and allows your employees to utilize that time in more productive ways. Additionally, you’ll experience transactions being exchanged in a matter of minutes rather than over a time period of days or weeks with other methods.

Better for the Environment

An EDI capable business operates eco-consciously by replacing paper-based tasks with software. Your company will no longer need to rely on paper or physical space to file and store its documents. This means no more printing out page after page and risking the chance of it getting misplaced. Instead, your EDI software provides an outlet for maintaining countless records in a socially-responsible, electronic format.

Reduced Cost

As the saying goes, time is money. And that definitely applies to EDI capable businesses. Much like a domino effect, your company saves time when utilizing EDI software which then cuts down on expenses. When you have real-time data insights, you can predict and control your team’s workflow. With greater insight on workflow and operations, you’ll be able to make more informed decisions on the amount of time and money a task requires. You also won’t spend money on paper, printing, storage, filing, postage or document retrieval.

Transform Your Business and Become EDI Capable with 1 EDI Source Software

Is your company ready to operate and communicate more effectively in the business world? EDI software provides your team with a safe, reliable, secure method of exchanging documents and conducting transactions. With over 30 years of experience, 1 EDI Source has been the leading EDI software provider in the industry. Our expert staff members are here to answer any questions you might have and help your business become EDI capable. For more information, download our free EDI 101 Guide or contact an EDI specialist today! We look forward to assisting you with unparalleled service and premium software.

Learn more about EDI best practices in our Knowledge Center where you will find useful articles, downloadable guides and more!

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Check Out EDI Capability In Action

When a business is EDI capable, a world of opportunity awaits. Don’t just take our word for it! Our EDI experts have put together some prime examples of EDI capability seen in internationally successful companies in these 1 EDI Source blog posts and articles.

Amazon EDI Compliance


Walmart EDI Compliance


Amazon New EDI Chargeback – Frustration-Free Packaging/Ships in Own Container


Home Depot EDI Update – New Canada Supplier Dispute Portal