True d-EDI-cation!

Working made more efficient with EDI

In today’s fast-paced business world, time is a precious commodity. As a result, the key lies in optimizing and streamlining workflows. Businesses are constantly looking for ways to improve their performance and gain a competitive advantage.

Electronic Data Interchange (EDI) is a technology that can play a vital role in significantly enhancing productivity. The use of EDI allows companies to optimize their work processes and make them more efficient.

In this blog post, we look at the benefits of EDI and how this technology helps us speed up our work processes. Our expert Klaus Schaffer will answer your questions.

How does the use of EDI increase efficiency in my company?

EDI enables swift and automated processing of essential business documents, including purchase orders, despatch advices, and invoices. Data is transferred to the ERP system in a structured format. Manual processes such as filling out paper forms or manually entering data become a thing of the past. This results in significant time savings and minimizes potential sources of error. Thanks to the automated exchange of data, businesses can shorten their lead times and ultimately work more efficiently.

How can EDI help improve collaboration between business partners?

One of the many benefits is improved communication and collaboration between companies. The electronic exchange of documents eliminates delays and misunderstandings that can occur when documents are transmitted manually, e.g., as a result of input errors. Information is transmitted in real time, which in turn leads to faster decision-making processes and improved communication with business partners. The seamless systems enables beneficial and smooth collaboration along the entire supply chain. By streamlining order processing and responding more quickly to customer inquiries, companies can take customer satisfaction to the next level. This can lead to repeat or more orders, positive reviews, and increased customer loyalty.

Companies that digitize their procurement processes ultimately improve their environmental footprint. How does EDI contribute to this?

EDI plays an important role in improving the environmental sustainability of businesses. The electronic exchange of documents reduces paper consumption and minimizes the usage of printer cartridges. Process automation reduces resource consumption, including energy and transportation. In addition, EDI enables better planning of supply chains, which in turn leads to a reduction in inventories and optimized use of transport capacities. By digitizing procurement processes, EDI helps reduce the environmental footprint.

Can EDI help address the skilled labor shortage?

EDI can actually help mitigate the impact of the skilled labor shortage. The use of EDI reduces administrative work and automates manual jobs, relieving employees of time-consuming routine tasks. This allows them to focus on more challenging tasks that generate greater value, which in turn increases productivity and helps overcome the shortage of skilled workers.

Can you illustrate this with specific examples?

Yes, there are numerous examples of how companies have increased productivity with the use of EDI. Instead of spending 2-5 minutes on manual entry, EDI orders just need to be approved. These time savings add up quickly: with 100 jobs and an average saving of 3 minutes per job, this results in a total time saving of 300 minutes or 5 hours. This approach allows employees to use their time more efficiently and focus on other important tasks.

The bottom line is that companies that use EDI are much more efficient and make fewer mistakes. What other factors favor this outcome?

In addition to the use of EDI, there are other factors that contribute to increased efficiency and a lower error rate. A clear and well-structured process design is key. Well-trained employees who can use EDI systems effectively also play an important role. Quality controls and monitoring systems help detect and eliminate errors at an early stage. Furthermore, implementing a continuous improvement process driven by feedback and analysis empowers companies to continuously enhance efficiency and consistently reduce errors.

The use of EDI can improve corporate work performance. Generally speaking, companies that embrace EDI technology are thoroughly prepared for the future and can look ahead with confidence and optimism.

If you would like to learn how you too can use Electronic Data Interchange (EDI) to optimize your supply chain, my colleagues and I will be happy to answer any questions you might have. Please use the contact box on the right to send us your message.

About the author

Klaus Schaffer
Business Development Manager at EDITEL Austria