EDI solutions improve business efficiency and reduce costs by automating processes such as procurement and invoicing, with businesses reporting up to 35% cost savings. The technology enhances supply chain operations through improved tracking and traceability, and is increasingly mandated by governments to reduce paper usage. Overall, a well-integrated EDI system supports better decision-making, cash management, and environmental compliance.

1. What EDI can mean for your business processes
Businesses turn to EDI solutions because EDI has proven to improve business efficiency and reduce costs. Compared to
manual business processes, EDI helps reduce costs and inefficiencies up to 35%.
Businesses from Amazon to Zappos use EDI to take advantage of these benefits. In 2018, annual EDI transactions
numbered over 20 billion. Combining EDI solutions with real-time APIs enhances partner communication even further,
particularly for omnichannel operations with a large number of daily transactions.
In this blog post, we’ll talk about how implementing an EDI solution can streamline your business operations.
Read more: Why is EDI integration important to your business?
Procurement
EDI was initially used in the procurement process to simplify paperwork. The procurement process involves four major
documentation stages: purchase order generation, purchase order acknowledgement, making changes in the purchase
order, and acknowledging those changes.

2. Traditionally, these processes were done by posting mail (or sending an email) to the recipient manually. Using EDI, these
processes are automated. Retailers can send their suppliers an electronic purchase order and their suppliers can then
respond with a confirmation record within seconds. Changes in purchase orders can be made and confirmed quickly,
easily, and often without human intervention. Buyers and sellers alike can expect several immediate improvements with
the right EDI strategy:
 Faster procure-to-pay
 Quick and accurate purchase order delivery
 Fewer time-consuming and labor-intensive processes like responding to email
 Improved buy-side agility and improvements in fulfillment rates
Supply Chain
EDI vastly improves supply chain operations. Supply chain processes typically include an advance ship notice (ASN). Also
known as an 856 or Ship Notice/Manifest, the structure of the message enables the transfer of information from seller to
buyer at the shipment, order, pallet, pack, and item levels, providing the receiver information necessary to schedule
shipment receipt and storage.
The ASN also accommodates common data elements used for business, including global trade item number (GTIN, i.e. the
numerical representation of the barcode) and traceability elements like serial number, batch and lot numbers, expiration,
packaging, and production. Relating harvest and use-by dates with these data elements at the shipment, order, pallet,
pack, and item levels can help ensure consumer safety and reduce counterfeit goods.
EDI documents like the Transportation Carrier Shipment Status Message (214) and the Motor Carrier Package Status
Message (240) from package delivery companies, couriers, logistics companies, and carriers enhance trading partners’
ability to track goods.
EDI is there when shipments arrive at the warehouse or on the consumer’s doorstep. The barcodes on the cartons can be
scanned and data delivered by way of the ASN can be used to automatically update inventories, send confirmations and

3. invoices, and if the shipments are somehow delayed, relevant personnel can be alerted immediately to address any
concerns.
Automating the exchange of data through an EDI solution across the supply chain improves:
 The timing of orders, shipments, deliveries, and invoices
 Cross-docking, direct store delivery (DSD), and direct-to-consumer (D2C) delivery
 Product traceability and shipment tracking
Read more: Improving your supply chain efficiency with ERP-integrated EDI
Invoicing
Businesses are always looking to improve business efficiency and reduce costs. Many are also concerned about the
environment. Within the United States, some federal agencies have made e-invoices compulsory to reduce paper usage.
Many countries have taken environmental and other concerns even further with countries including Spain, Brazil, Italy, and
Mexico mandating the use of electronic invoices.
EDI solutions have a long record of success in improving communication and reducing fraud. Companies employing EDI
solutions have also been able to save costs in paper, processing, postage, and invoice storage, furthering their operational
goals of improving efficiency and reducing costs. Real-time access to electronic invoices and other business documents
helps trading partners eliminate manual tasks commonly associated with paper-based process while improving days sales
outstanding (DSO) and reducing payment penalties.
Conclusion
A properly designed, implemented, and integrated EDI solution offers businesses many significant advantages:

4.  Improved decision-making
 Improved business efficiency
 Improved environmental and regulatory compliance
 Improved cash management
 Reduced paper, processing, postage, and storage fees
EDI-enabled companies are better prepared to focus on their customers without increasing overhead or administrative
tasks. To learn more about how your business can migrate from a labor-intensive, paper-based business process to a
modern EDI solution for your business, contact Visionet.