ERP systems enable businesses to integrate various operations such as accounting, procurement, project management, and supply chain operations on a single computerized system. EDI facilitates electronic data interchange between businesses, allowing them to exchange documents digitally. While EDI and ERP can function independently, integrating them provides benefits like streamlined data synchronization, improved visibility of supply chains, efficient communication, and faster order processing. The combination of EDI and ERP is particularly useful for industries that exchange large volumes of documents daily. [/SUMMARY]

1. ERP and EDI

2. ERP
• ERP is a software suite with several integrated applications. It enables a business to gather, store, organize and
analyze data from different business areas. A typical ERP application will offer modules to help a business
track Accounts Payable, Accounts Receivable, inventory, sales orders, purchase orders, payroll, etc.

3. • EDI is a method through which businesses exchange documents with each other. It supports communication
by enabling entities to send documents electronically.
• EDI came to replace faxing and post-mailing as means of sharing business correspondence.
• EDI allows users to exchange purchase orders, sales orders, shipping notices, invoices, payment documents,
acknowledgments, shipping status statements, etc.

4. • EDI does not need ERP to perform its roles. However, ERP uses EDI technology to facilitate the real-time
transmission of data. That is another way in which EDI and ERP systems differ. The two systems are similar
in that they reduce the risk of human error.
• EDI carries out document exchange via computers rather than humans. ERP automates every business process
and activity to reduce data entry errors. Thus EDI ERP systems minimize paperwork and human
interventions. Also, they lower administrative costs and boost productivity.

5. • What is EDI in ERP?
• The modern EDI solutions are easy to merge with ERP. EDI and ERP integration seem like the future as even
the entry-level ERP vendors provide embedded EDI. A combination system can offer the benefits of EDI in
ERP.
• The integrated system is ideal for most industries, including manufacturing, wholesale distribution,
transportation, etc. If your business exchanges large volumes of documents daily, Edi in ERP might work for
you. Even small businesses that aim to expand fast should consider EDI when implementing their ERPs.

6. Need for EDI in ERP
 More effortless synchronization of data – Both EDI and ERP allow the
electronic transmission of files. Thus, they eliminate paperwork and save a
lot of time. And to view synchronized files, users can log into their ERP
systems and view them. They do not have to rely on fax anymore.
 Improved visibility – A supply chain can be long and complicated.
Luckily, EDI integration with ERP increases the visibility of even the most
complex supply chains. Due to better visibility, a company can process
orders faster, shorten its order to cash cycle, and welcome partners already
using EDI.

7. Need for EDI in ERP
 Efficient communication – EDI supports seamless file exchanges between
departments and organizations. It essentially reduces paper-based
communication. As a result, EDI integration ERP software reduces
procurement costs and streamlines the purchasing process.
 Promotes customer care – How your customer care department responds to
customers’ questions matters. If customers have to deal with paperwork,
the retrieval and exchange process will be long and tiring. EDI in ERP
simplifies customer data retrieval and promotes a quick resolution process.
Prompt resolution translates to a happy customer who comes back over and
over.

8. Need for EDI in ERP
 Quicker order processing – Customers everywhere love a business that
serves them quickly and effectively. A combined EDI and ERP system can
quickly help your business process orders and respond to issues faster.
They will also reduce manual work and alleviate fatigue. Besides, if you
process orders quickly, you can make more sales.
 Expand your business faster – A company that wishes to form new
partnerships must be willing to pay the price. Progressive organizations can
easily accept allying with a business that uses an EDI ERP system. Thus,
incorporate EDI into your communication systems to obtain more valuable
tenders and opportunities.
•

9. ERP EDI
It comes with a name, Enterprise Resource Planning. It comes with a name, Electronic Document Exchange.
ERP is systemized with operational tools such as WMS or job
costing solutions.
EDI is an exact technology for working in B2B process.
EDI brings productivity and efficiency. EDI runs with the process
itself.
EDI provides traceability and integration of IT systems. EDI
eliminates paper documents and introduces automation.
It exchanges documents for large as well as small businesses.
EDI is essential and saves time & money with more accuracy.
It is undoubtedly a heavy tool that needs creative planning and
perfect implementation.
ERP comes to train employees and help employees just to
enhance efficiency and productivity.
ERP is a non-constraint-based tool.
It eliminates and automates manual processes and synchronizes
data.
ERP is a non-constraint-based tool in comparison of EDI ERP.
It is an effective tool that can be re-formed according to using
benefits.
It exchanges documents for large as well as small businesses. EDI
is essential saves time & money with more accuracy.

10. ERP Software in the Manufacturing Industry
• ERP software is used to manage daily activities such as
procurement, risk management, accounting, supply chain
operations, and project management.
• It is a platform that provides a wide range of business
functions such as financial management, human capital
management, supply chain management, customer
management, inventory and work order management, and
so on

11. Importance of ERP in a manufacturing
Industry
• Real-time Information
• Manufacturing ERP software automates all business operations and provides accurate, real-time data. ERP
boosts efficiency and productivity by guiding users through complex processes, preventing data re-entry, and
improving production, order completion, and delivery functions.
• Flexibility
• ERP software programs are dependable, adaptable, and customizable. They can be customized to meet the
particular needs of a business and are not a one-size-fits-all solution. ERP systems can also change to meet the
evolving requirements of a developing company.
• Reduce cost
• ERP software reduces administrative and operational costs by providing a single source of accurate, real-time
data. It enables manufacturers to manage operations proactively, preventing disruptions and delays, breaking
down information bottlenecks, and assisting users in making faster decisions.

12. Key features of manufacturing ERP system
Inventory Management
• Effective inventory management is critical for manufacturing companies. Inventory management includes
tracking inventory, product status, raw material management, purchase order tracking, finished goods, and
overall control. Modern manufacturing ERP systems include methods for inventory management, just-in-time
delivery, and material requirement planning (MRP), which aid in the efficient management of inventories.
Compliance and risk management
• To keep track of different compliance and regulations of business, ERP systems include software to manage
risk and compliance. Today’s ERP systems are designed with compliance and regulation features to assist in
the management of human resource regulations at every stage and information security.

13. Key features of manufacturing ERP system
Quality Control
• Quality control is a set of standards that ensures that a manufactured product meets the organization’s quality
goals. Quality is a critical success factor. The product had to be thoroughly examined and tested as part of
quality assurance. ERP software aids in the tracking and monitoring of various quality management processes
through alert mechanisms and monitoring at all levels.
Process automation
• Technology makes it easier to automate everyday tasks, saving man-hours and virtually eliminating the
possibility of human error. Complete process automation is provided by manufacturing ERP, which integrates
a number of processes, including sales, purchase records, stock, human resources, and others. Automation
saves time and allows organizations to access real-time data and exercise greater control.

14. Key features of manufacturing ERP system
Distribution and supply chain management
• Distribution and supply chain management oversees various elements such as
packaging, warehousing, logistics, point of sale, vendors, and suppliers for multi-
store brands and retail chain businesses.
Asset management
• Good manufacturing ERP software includes an asset management module that
controls physical assets and equipment of the factory. It helps businesses in
lowering risk and expenses while boosting uptime and productivity.

15. Key features of manufacturing ERP system
Finance and Accounting
• ERP systems for manufacturing provide complete management of the entire business. The finance and
accounting module tracks all financial activity, documentation by integrating various reports and business
intelligence tools. It makes it possible for a business to precisely track the procedure and formulate plans.

16. Future trends in ERP for manufacturing
industries
Cloud Migration
• Cloud migration is extremely beneficial to mid-sized businesses. Legacy systems and other ERP applications
have high infrastructure and maintenance costs. Cloud ERP, on the other hand, can be used with any computer
or laptop that has an internet connection. Many employees can use cloud software for a low and reasonable
cost because it is subscription-based. This provides small businesses with additional benefits.
Artificial Intelligence
• Artificial intelligence is one of the upcoming future ERP trends. Artificial intelligence algorithms are made to
think and act like people, analyzing problems and making decisions.
• In the manufacturing industry, AI-enabled tools integrated with ERP applications help companies save time
when analyzing large amounts of data. All of these tasks are handled by AI, which sends notifications via
software resulting in a business process that is more streamlined and optimized.

17. Two Tier Systems
• This kind of ERP is primarily utilized by mid-sized businesses as well as businesses with multiple locations.
The first tier consists of the legacy system used by management to manage master data. All other subsidiaries
use the second tier. The software in the second tier can be altered to meet the needs of various departments.
Internet of Things (IoT)
• The Internet of Things tracks real-time data about tools and vehicles when integrated via cloud-based ERP
systems. To ensure efficiency, the tools and machines should be regularly maintained;
• enabling sensor devices on tools that can immediately detect a defect and send a replacement request via ERP
applications. ERP’s real-time data assists businesses in improving asset management, forecasting, real-time
business insights, and so on.