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What Is EDI And How It Benefits Businesses Of Every Size

What Is EDI? Electronic Data Interchange, is defined by the National Institute of Standards and Technology as, “the

What Is EDI? Electronic Data Interchange, is defined by the National Institute of Standards and Technology as, “the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media.” However, it can be summarized as a process by which computer systems exchange business documents quickly and securely in a standard electronic format. Some examples of those electronic formats include those from ANSI, EDIFACT, TRADACOMS, and ebXML.

What Is EDI Efficiency

By shedding traditional paper-based systems, businesses and their partners can take advantage of a host of benefits that EDI provides. Those benefits include, but are not limited to faster production speeds, fewer errors, reduced costs, and stronger more reliable partnerships.

When it comes to Electronic Commerce (EC), also known as e-commerce/eCommerce, EDI provides an essential method for carrying out business functions relating to information exchange, monetary transactions, and purchasing both in business-to-business and business-to-consumer relationships.

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EDI helps eliminate human participation in the exchange of essential documents throughout business processes. In short, EDI helps automate tedious and error-prone business processes.

What Is EDI Security

When it comes to how EDI can affect your company’s business processes with customers and partners, security becomes one of the most important factors to consider. By doing away with paper systems and outdated technology, like phone, fax, and email conversations, your business can take advantage of more comprehensive and secure exchange methods. Consider these benefits when it comes to implementing an EDI solution for your business:

  • Audit trails
  • Contingency planning
  • Use of acknowledgments
  • Electronic document management
  • Activities of supporting networks
  • User access controls to systems and networks
  • Cryptographic techniques for authentication and confidentiality

About Encompass Solutions

Encompass Solutions is a business and software consulting firm specializing in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of the Industry.

Sean Balogh
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About Sean Balogh

A marketing professional working hard to deliver relevant and engaging content to audiences in education, technology, and manufacturing.