Manufacturers, Power Your Supply Chain with EDI!

Looking at all the technology combinations in the world, you'll struggle to find a better combination than EDI and the supply chain. EDI in the supply chain standardizes reliable transactions, reducing the risk of human error, miscommunication, incorrect shipments and other errors.

As technology combinations go in the world you will struggle to find a better one than EDI and the supply chain. In fact, the EDI-supply chain combination is what ultimately drives global commerce today.

What is EDI in the Supply Chain?

EDI in the supply chain standardizes supplier transactions, lowering the risk of human error, miscommunication, improper shipments, and other errors. This is especially useful for large retailers, manufacturers, and logistics organizations who deal with a wide range of suppliers in their supply chain. 

EDI is the business language that unites every Trading Partner in supply chains and securely exchange business documents.

How do Manufacturers use EDI in Their Supply Chain?

Any manufacturer with a supply-chain-centric business will run into EDI in some way, shape, or form, and it’s those companies that take advantage of modern EDI software that will thrive in a landscape transformed by digital and e-commerce channels. In manufacturing, EDI can be used to automate and streamline various processes, such as procurement, inventory management, shipping, and invoicing. This can lead to improved communication, reduced errors, and increased efficiency throughout the supply chain.

It’s no secret that EDI providers and the supply chain are a natural fit. Being able to have visibility throughout your whole ecosystem is fundamental to success, which is why moving away from clunky, cumbersome, legacy systems is vital.

Benefits of Upgrading Your EDI for Enhanced Supply Chain Management (SCM)

There are many different reasons that Manufacturers use EDI to power their supply chain. The main reasons are:

  1. Cost Savings: A streamlined documentation process helps manufacturers comply with EDI service standards, which helps to avoid fines due to SLA violations, delays, and other performance gaps.
  2. Speed: EDI allows manufacturers to cut processing time remarkably through automation, speeding up business cycles. EDI order processing substituting for traditional order-to-shipment cycles, in particular, can be cut by 50 percent to 60 percent. 
  3. Accuracy: Nobody wants to make errors, and that’s exactly what EDI helps manufacturers avoid. When employees are forced to manually enter data into enterprise resource planning (ERP) software or order systems, odds are that a mistake will happen eventually. 
  4. Efficiency: EDI is proven to be fast and accurate, which is why it’s such a popular integration and automation method to enterprises everywhere. 
  5. Security: Manufacturers can feel safe and secure when they have an EDI model in place. In fact, EDI solutions are designed to ensure security and only allow strict access to authorized users, and are usually equipped with archive tracking and audit trail capabilities. 

How to Get Started

Modern EDI is core to a successful digital transformation strategy, one that gives companies the flexibility to reshape how they use technology to interact with customers, trading partners, suppliers, and applications. ECS can assist you to learn how to leverage the correct EDI solution to speedily onboard new partners and strengthen connections with suppliers, logistics partners, and retailers. Contact us today to find out more.