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7 reasons why your business should be part of EDI’s ongoing success story

The success story of EDI on the road shown with 5 arrows in one direction

Did you know that EDI was used as early as the 1960s? Granted, back then, EDI standards didn’t yet exist, and data was still transmitted via telephone lines or by telex. And yet, the success story of Electronic Data Interchange (EDI) for business documents started back then. Today, almost no business sector would like to operate without this ingenious and constantly evolving technology. But why is that the case? Why will EDI play an even bigger role in the digitalization of the world economy in the future? There are many reasons for this.

 1)  The reliability of EDI

As the well-known saying goes, “Never change a winning team.” When it comes to Electronic Data Interchange (EDI), it is hardly surprising that numerous businesses around the world have come to rely on this tried-and-trusted technology. For countless suppliers, service providers, and clients, this technology has become an essential part of their supply chain optimization. Ultimately, reliability is one of EDI’s main success factors. Everything works smoothly, like a well-coordinated team that you wouldn’t want to change.

2)  The “herd instinct” in Electronic Data Interchange

An obvious, and fully accurate, thought about EDI is the following: “Technology that has been successfully used by so many companies around the world for so many years simply has to be good.” An increasing number of companies expects their business partners to also use EDI. The higher the number of participants in the supply chain who electronically exchange orders, despatch advices, invoices, and other business documents, the more efficient the system will be. It comes down to a sort of “herd instinct” that more and more companies will act on to avoid being left behind by technology or even losing clients.

3)  Access business documents anywhere

Companies that do not yet use EDI might have experienced the following situation in times of the coronavirus: a supplier follows the usual process and mails an invoice to the office, but since employees are telecommuting, they do not have access to this invoice. However, the digitalization of processes via EDI allows companies to access their business documents from anywhere. This is an invaluable advantage, not only in exceptional times like these.

4)  EDI and investment safety

The following situation might also sound familiar to many: you buy a smartphone from a specific manufacturer and three months later, the latest model comes out. In the world of EDI, there is no reason to worry about this because you won’t be investing in yesterday’s technology instead of tomorrow’s. The technology is constantly fine-tuned and updated and allows EDI users to have state-of-the-art technology for a service that has been successfully used for decades. The ever-increasing number of users also continuously underscores the relevance of EDI and consistently reflects the significant untapped potential for the future that is inherent to EDI.

5)  Digitalization significantly reduces mistakes

For many tasks, humans are better than machines. One example is that as humans we show emotions, are creative, and can usually handle tasks previously unknown to us. However, repetitive tasks can be a source of mistakes for humans. The use of EDI avoids system inconsistencies (no more printouts with subsequent manual data entry), which means that potential mistakes can be avoided altogether.

6)  EDI is available for any company

There is no doubt that EDI has long ago reached SMEs. While EDI was initially limited to large corporations, these days even micro companies benefit from process automation with EDI. The new wave of technologies brings about new solutions such as Web EDI, cloud-based EDI, EDI as a service, APIs, etc., and eliminates technological barriers to entry. EDI is now easier than ever.

7)  EDI is used around the world

In today’s globalized world, many companies have become part of a bigger supply chain, whether it is as buyers of raw materials from abroad or as exporters of their own merchandise. EDI standards such as EANCOM are understood by consumer goods corporations anywhere, whether they are located in the USA, in Vorarlberg, or in China. After all, EDI knows no borders!

Would you like to learn more about the numerous benefits of EDI? If you do, please see the information in the contact box (right-hand side) to send us your inquiry.

Portrait photo Karl CegnerAbout the author

Karl Cegner
Head of “Project Delivery & Consulting” at EDITEL Austria

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EDITEL, an EDI service provider, is the internationally leading provider of EDI solutions (EDI = Electronic Data Interchange). The company specializes in the optimization of supply chain processes for companies of all sizes and in all industries.

Portrait photo copyright Editel/Petra Spiola
Symbolic image copyright pixabay

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