EDI in Action

Any successful business knows it’s important to capitalize on time, money and talent, these worthy goals can be attained with the addition of EDI to their workflow. Today we’ll look at a few examples of EDI and how it helps companies grow by enhancing the good practices already in place. Before looking at these EDI success stories, let’s answer two important questions.

EDI (Electronic Data Interchange) is a computer-to-computer exchange of business information in a standard and structured format. So, what are the effects of EDI? Businesses use EDI to streamline and improve operational efficiency of business processes and communications by trading emails, faxes and old-fashioned snail mail for electronic data exchange. The process is far faster and more efficient than the old business model while also working to reduce costly errors.

Using a traditional method – mail, email or fax – the buyer checks inventory numbers before placing an order by entering information into a purchasing system to create a PO that is then printed and mailed, faxed or emailed to the seller. The seller receives the purchase order in a few hours or days along with other forms of communication all of which must be sorted and handled. Once the order is received, it is manually entered into the sales system.

The seller now prints and sends an invoice which the buyer receives hours or days after the purchase and then enters it into the accounts payable system. This back and forth takes time and has built in to it several opportunities for costly human errors.

With EDI software implementation, the buyer’s system automatically generates and sends a standardized purchase order when inventory reaches levels set to trigger the system. The seller almost instantaneously receives this purchase order and the EDI system alerts the warehouse to pack and ship the goods, while an invoice is created and sent to the buyer’s accounts payable system. The entire exchange can be within minutes and error free.

Thousands of standard business documents can be sent automatically with EDI including purchase orders (EDI 850), purchase order acknowledgements (EDI 855), advance shipment notices (EDI 856) and invoices (EDI 810).

DataTrans has helped many businesses over the years by putting EDI in action for them. Let’s look at some EDI examples.

When a home goods business received a sudden boost in orders, they needed a scalable EDI solution in place to help quickly handle and fulfill these orders. DataTrans connected this business with their trading partners with an all-in-one EDI and eCommerce solution, WebEDI, and scaled to integrate with their existing accounting system, QuickBooks. This streamlined the order to invoice processing, not only making fulfillment that much easier but enhancing efficiency for their invoicing process.

As a construction manufacturer grew, they naturally had to handle more data. DataTrans easily integrated with this manufacturer’s existing ERP system while helping them expand to handle increased data flow. DataTrans offers businesses robust, fully integrated system and detailed assistance with EDI software implementation and onboarding so manufacturers don’t have to miss a beat.

Ready to expand their medical device company into retail space, one company needed an EDI system in place fast, before they lost their once in a lifetime opportunity. DataTrans quickly completed their initial set up while providing training sessions and online tutorials for staff before the first PO arrived. DataTrans remained available with live help whenever needed to make sure the transition was seamless, and this company was able to expand.

When partnering with a major retailer, one company needed a reliable EDI system in place to handle the order workload. With DataTrans they can now send an advanced shipping notice and invoice within 1-2 minutes because the majority of the fields are already populated with the correct information. This automation not only decreased time spent, but also errors made for this company.

Discover how DataTrans can help your company connect, integrate, automate, and expand across the market. Contact DataTrans team of experts for a free one-on-one consultation.