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EDI automates the data exchange process to minimise supply chain error and enhance overall business operations. The system also regulates information flow to provide greater visibility so you can make more informed decisions about your business. 


What is an EDI system? 

EDI, or ‘Electronic Data Interchange’, is the electronic interchange of business information between organisations. Using a standardised format, this process allows companies to send information to each other electronically. For example, purchase orders, invoices, shipping statuses, customs information and inventory documentation. An effective EDI system provides compatibility for a range of different systems used for supply chain management.  


How can EDI help to optimise and improve supply chain performance? 

Cost Savings 

Exchanging data via an EDI can help reduce costs by encouraging businesses to become paperless. Paperless transactions can cut costs on paper, printing, reproduction, storage, filing and all the administrative tasks associated with exchanging information with business partners and suppliers.  

Manual data entry is time-consuming which can lead to longer waiting times between the order and delivery of products. Implementing an EDI system can help shorten the time between order and delivery by up to 50% by automating key processes which also helps reduce costs on the labour and resources used to carry out the task manually. 


Minimising Data Errors 

Supply chain errors can account for thousands of  of pounds worth of lost revenue each year. EDI automates key processes in the document exchange process to reduce the amount of errors that’re entered into the system and  communicated to the external partner or supplier. Error reduction through automation shortens the time between order and delivery and improves the accuracy of data flowing through the supply chain.  

EDI functionality also helps reduce the amount of labour and administrative costs associated with fixing human errors at the point of data entry and correcting mistakes further down the supply chain. 


Easier to Connect to Suppliers 

Exchanging data can be challenging when the standard for communication differs from business to business. An EDI’s compatibility with different systems ensures that no matter what system your partner or supplier uses, you’ll be able to exchange data and documents freely, and in the same format, to reduce errors and improve communication between your companies. This also makes the onboarding process easier for new suppliers and partners as it allows them to connect and communicate with your business efficiently and effectively. 


Looking to implement EDI into your business to improve supply chain efficiency? 

If you would like to learn more about the benefits an EDI can provide your business, get in touch with us today. We have industry leading experts with years of experience managing the performance of supply chains throughout a range of different sectors.