Electronic data interchange technology has been around since the late 1950s when it was used as an integral part of the way in which shipping companies did business. This particular technology uses simple coded messages which are sent electronically between 2 points, to pass on information. In the modern age an EDI platform is used for a wide variety of functions in business and especially in the supply chain.
The reason why this technology is still in use some 60 years on is because of the sheer volume of benefits which it is able to offer, benefits which we are going to explore today.
In a world where we are more environmentally conscious than ever before, so many companies have commitments which require them to greatly reduce the amount of energy that they use and the impact they have on the planet. EDI platforms are a perfect way of doing this because of the fact that the passage of information is quick and energy efficient. Beyond this we also have to consider the reduction in paper, printing and postage of documents, all of which are energy intensive.
Speed of Information
We live in a fast-paced world and that is why we need speed when it comes to our orders and our invoices. This again is where EDI works its magic because information can be passed between 2 points in a heartbeat. This not only increases efficiency for companies but it helps to maintain a good relationship between the two partners.
Security is of paramount importance when we are sending sensitive information and that again is why using EDI to do it makes the most sense. Using EDI platforms require passwords and authorized users and it is undoubtedly one of the best ways in which you can send important information between two points. Some will argue about the benefits of email when it comes to sending information but simply put, there just isn’t the level of security there which is required when it comes to the passage of sensitive information.
Accuracy is crucial when it comes to sending information and this is yet again where we see EDI platforms deliver time and time again. Ultimately when we automate tasks we are able to reduce or remove completely the risk of human error. Mistakes cost money, mistakes can impact business relationships and ultimately mistakes are something which none of us need. Thanks to the use of an electronic data interchange platform we no longer have to worry about the damage which mistakes can do.
There is absolutely no doubt that any business should be looking to implement and EDI platform in their operations. This has proven time and time again over a long period of time to be the fastest, the most cost effective, the most accurate and the greenest solution when it comes to the sending of important documents between two businesses, and the benefits are unparalleled.