EDI Systems

EDI is cost-effective in a number of respects. There are three main areas of business activity in which the use of EDI can contribute to cost reduction along with increasing the quality as well as the quantity of transactions. To begin with, electronic document interchange results in the following:

• Reduction in administrative costs - This cost reduction is self-evident in the context of EDI and may be easily calculated for each company. It is enough to estimate the expenses involved in printing, copying and sending documents, charges for telephone and fax, the time spent on collecting data and manual data input, manual archiving, monitoring the correctness of documents, corrections, the salary for employees who carry out the above tasks, and many others. Electronic data interchange eliminates the majority of these expenses.
• Quick transaction realization - Electronic data interchange considerably accelerates the following cycle: order-sale-invoice-delivery-payment. As a result, one can improve the planning processes with regard to the storing of products, defining the necessary space within the warehouse and the volume of reserves. Additionally, EDI accelerates currency circulation and secures the delivery chain.
• Strategic benefits for the company - They consist of reinforcing market relations, improving customer service and relationships with commercial partners. Additionally, EDI systems constitute a source of competitive advantage and increased employee efficiency.