Thursday, June 6, 2013

Business To Business Technology Improves With EDI

By Peggie K. Lambert


Electronic Data Interchange is what is known as EDI. It is a way for business partners to eliminate the paperwork involved in order processing and streamline their communications. Business partners who use EDI exchange data using their internal computer systems so that no paperwork ever has to exchange hands and this eliminates the problems of inaccuracies in order fulfillment.

Companies that do shipping and receiving are using this newer technology to make their efforts more efficient and for cost savings. This technology is quickly gaining ground in the business world as more and more companies are implementing the system and using it in their own operations.

Paper documents in the past made the process of order fulfillment very difficult and many times slowed production to a halt if there were errors or inaccurate information exchanged. Now those problems have been eliminated and the process can take place within a day with minimal mistakes if any at all. This electronic method has greatly improved production and productivity and lessened the need for many wasted hours of labor.

Some of the largest manufacturers and big business are going the route of the digital revolution and includes such industries as financial services, automotive, retail and high technology. Many are seeing a vast improvement in their entire operations as a result of using EDI systems. Not only is it socially responsible but financially feasible as well.

Saving money in business is always a concern and this system has allowed companies to save and improve their businesses all around. Some industries who have converted to using the EDI system are the automotive industries, retailers, financial institutions and higher technology companies. They have found it is simple to implement and use and have seen the many advantages over the older method of doing business.

Since the inception of this technology, there had to be a way to standardize the format that is used between businesses so that the documents exchanged could be read and understood. While there are several standard formats and versions of those formats, business partners must first agree on the format that they will use before they begin processing their orders. Some of these formats include ANSI, TRADACOMS, XML and EDIFACT.

Our working world is becoming digitized everyday as more and more people, businesses and industries latch on to modern technology to improve their lives and livelihood. With the concept of EDI may come even further developments but for now, this new technology is vastly improving business on every level even down to the customers who purchase the products from retailers.




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