Benefits of EDI

The primary benefits of EDI lie in automating the transfer of order information between customer and supplier. Transferred order details must be accurate, because no one has intervened, so no one has had the opportunity to misread or mis-key the data. EDI also eliminates the administrative costs involved in printing, posting, receiving, and then entering order information back into supplier computers.

Another major benefit is the speed of the process. Suppliers can be processing orders within an hour or so of the orders being released by the customer. For manufacturers who are working on just-in-time systems, the speed of ordering and supply is critical. For retailers and distributors where service is key, a rapid response from suppliers may be an essential component.

Yet, another benefit is realised when trading internationally. The barriers too often raised by differences of language and culture no longer apply to transactions communicated by EDI to internationally agreed standards.