The three benefits of EDI

Written by Act Data Services, Inc. 1-800-ACT-DATA

EDI can bring significant benefits to any organization. Depending on the how and why EDI has been implemented will determine the benefits that each individual organization will realize. The benefits themselves of using an EDI provider can be classified into strategic, operation and opportunity benefits. Here is a look at these three benefits:

Strategic benefits

The primary strategic benefits will be in areas such as customer service and market competitiveness. There will also be benefits from faster trading cycles. One of the more significant benefits is the ability to adopt processes like Just-in-time manufacturing. Finally, there is utilizing the value added network provided by EDI to increase business efficiency.

Operational benefits

The most immediate benefits will be operational. These will be everything from improved cash flow, reduced costs, and reduction in errors. The cash flow improvements come from the reduced operational costs. The reduced costs come from postage costs and from the reduction in inventory held in stores. Even the reduction in errors due to automation will have a significant impact on cash flow and the bottom line.

Opportunity benefits

These are harder to quantify immediately but will include improved trading relationships. Another benefit will be an improved image for the organization from the improved customer server and increased market competitiveness.

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Act Data is an EDI provider for retail and supplier environments. They will handle all aspects of the implementation including vendor compliance.