Three Major Processes of EDI and Their Benefits

By | October 1, 2016

EDI (Electronic Data Interchange) is a means for computer-to-computer interchange, data exchange and electronic communication between two parties on different computer systems or networks. Ultimately, it is the one method that provides a highly efficient interface between systems and users that can fit most of their needs.

Electronic data interchange is commonly used for e-commerce purposes. Business trading partners who need to exchange data and/or business documents with each other for instance use EDI for transferring files much faster and to manipulate data electronically when needed.

Simply put, businesses with EDI are able to improve their efficiencies. It is used for data and information exchange, but it is apt for those that need to have a way to give a quick response, carry out or speed up a transaction, deliver a service without delays, use less time for inbound/outbound processing and find fewer errors than when processed by hand.

In reality, EDI offers great advantages and benefits: For one, it can reduce workload of administrative tasks, streamline information flow and business processes, can increase service speed and delivery, raise productivity and profits – all by providing an efficient way to exchange information that can decrease costs.

To maximize use of EDI, which has been the ideal mechanism for companies to buy, sell, and trade, there is the need for trading partners to achieve compliance. To experience EDI, one must go through three major processes to gain its full benefits:

  • Mapping is crucial for transforming messages
  • Translation is essential to extract and process the data in a standard EDI format when sending and receiving
  • Requires using the appropriate communications protocol

The mentioned three major processes involved in the exchange of EDI data can be implemented using EDI software, a web-based EDI tool or cloud-based EDI solution where one can outsource with an EDI service provider.

If a business wants to create maps using BizTalk Mapper or with Microsoft’s BizTalk Server graphical mapping tool, for example, it can easily represent the translation and transformation of input and output messages.

Alternatively, there is SAP Business One EDI software that does the same.

You can also consider 1EDISource who has years of experience creating innovative and effective EDI solutions and understands the structure of the EDI translation process. This company not only has a mapping, translation and integration solution, which is featured in its EDI/HQ software, but it can help those that want EDI find the most suitable approach to suite their business needs.

Of course there are other EDI providers and vendors that offer both software and consulting. Regardless of whom a business turns to, it is important to choose someone trustworthy and who can provide support for either a business-to-business (B2B) or application-to-application (A2A) integration.

In sum, when one does business via EDI one thing is for sure, users will definitely have a dependable system for transferring data and information to their recipients. It is a solution that could drastically make improvements in the way a company performs operations.

Source by Eugenie Ybarra

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