Thinking about scaling your business? Think EDI
Do you know what EDI is? Or how it works and what its benefits are for your business?
Let us shed some light on a subject that you may not be entirely familiar with. The EDI (Electronic Data Interchange) technology first emerged some 40 years ago and has since developed under various versions, each more efficient than its predecessor.
It basically allows you to bring all your previous processes and data, that up to that point had been manual, in the automation specter. Which means that you and your business partners can now exchange data electronically, eliminating the need for paper documents. It revolves around the idea of standardization – a set of rules that build a language accessible to anyone.
Even though the thought of growing your business may only make you giddy, it is important to remember the importance that optimization has in the process. EDI can take care of that and you don’t have to worry about anything. There will be less manual labor, less human involvement and less errors, which means that you can simply grow maintaining the same levels of integrity to the sensitive data that you’re working with in your daily business operations.
EDI basically elevates everything you already have, by adding efficiency and accuracy to the systems you are already working with.
Compliance and standardization – two perks when implementing EDI
EDI enables you to remain in compliance with all the rules and standards. Due to the sensitive nature of data, its electronic exchange needs to abide by certain regulations that international bodies have established. On top of that, when dealing with certain trading partners, they might ask you to follow some of their very own rules.
Having a standardized way of exchanging data simplifies everything and enables you and your business partners to speak the same language and communicate more easily.
Also, by having live access to everything that is happening in your supply chain, you can make quicker and more informed decisions. You can analyze past data and based on it, you can make forecasts that are accurate and that will actually help your business, instead of impairing its development.
By operating on such a high degree of standardization, taking on new business partners and going out into the unknown poses too little threats. Also, don’t forget about the sustainability factor. You will be doing the environment a great favor by not using so much paper anymore.
EDI is actually the stepping stone that your company needs to move on to the next level.
Better communication and an increase of accuracy and speed – EDI makes it all possible
Everything changes once you take this next step and introduce your business to the wonders of EDI. You will notice how communication is clearer both within your company and with your business partners.
What is more, what used to be done in a couple of days now can be done in a matter of minutes, while vouching at the same time for greater accuracy and less errors.
By increasing the speed at which these transactions are processed, the business cycles will also diminish in length.
Perhaps one of the most important benefit that EDI will bring to the table is the financial one. Running a business around paper documents can be very costly: everything from the paper itself to the people who need to handle it, as well as to storage units and postage costs. Also, there will be fewer errors, which means a reduction of costs down the road.
By implementing EDI, you will also have better control over your inventory levels. This way, you will be able to replenish accordingly and wisely, not burning through funds that can otherwise be used for research and development.
As you can see, EDI takes a heavy load off your shoulders, streamlining business processes and allowing you to finally scale. For more information on how you can reach this next level for your business, please contact us.