Friday, July 08, 2005

Could you tell me a little about EDI?

The initials EDI stand for Electronic Data Interchange. EDI is used for sending and receiving electronic business documents between companies.

EDI is commonly used to replace the faxing and mailing of paper documents. It improves the efficiency and accuracy of communicating documents such as Purchase Orders, Invoices and Advance Ship Notices. Other frequently used EDI documents are Functional Acknowledgements, Purchase Order Changes, Product Data Activity Reports, Payment Remittance Advices and Order Status Inquiries.

Recent research about EDI in 2005 has shown that over 80,000 companies use EDI to improve their efficiency with their supply chain partners. Many companies require their business partners to have EDI capability and to be compliant with their EDI standards.

There are two basic ways to implement EDI. You can use a web based EDI provider or you do everything your self which includes buying and installing software, communicating with a VAN, and implementing EDI maps for each trading partner. EDI services can be purchased if you wish to outsource. Web based EDI saves you time so that you can concentrate on growing your business.

If you have a very large number of trading partners, or if you enjoy implementing new technology, then buying your own software may be the right choice for you. Finding the right EDI vendor for your needs is important because both you and your customers will depend on your EDI transactions for important business documents.

You can outsource all of your EDI services needs to a web based EDI provider, do it all yourself by buying each of the components from a different EDI vendor, or arrange for consultants to help with a portion of the EDI services work.

Follow this link for more about EDI.


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