Even in the age of the Internet and global networking, the possibilities presented by electronic data processing are still not exploited to full capacity. Many processes have not been fully automated and require manual intervention. Result: Error rates and costs increase, processes are slowed down. This is exactly where EDI comes into play.
EDI – Electronic Data Interchange
EDI stands for the electronic management of business processes between two companies. The highlight? Processes are completely automated and manual intervention becomes superfluous.
Example: Ordering through EDI
See for yourself how easy EDI is. The customer enters his order into the EDI system. The data is transferred to the supplier and is automatically read in and processed at the supplier's inventory control system. This system automatically creates an order confirmation and sends it back to the customer. This means that the customer is quickly informed of the time frame in which he can expect to receive his product. Summary: There are no time delays and the error rate is low.
EDIFACT – Electronic Data Interchange for Administration, Commerce and Transport
EDIFACT is an international, industry-wide data standard for EDI. It contains the precise definitions for EDI messages. There are about 200 message types defined in EDIFACT which cover all important business transactions across all industries.
Over the course of time, different EDI standards have developed in various industrial sectors. These sector-specific standards are designated as subsets and incorporate message types required by the respective branch of industry.
What are the benefits of EDI?
Numerous routine processes can be automated using EDI. This produces significant benefits which can be split roughly into three categories.
- Rapid data transfer at any time
- Shortens the order through-put time
- No repeat data acquisition
- No typing mistakes or reading errors
- No badly legible documents
- No collation, distribution and archiving of receipts and documents
- Lower transmission costs
- Redistribution of personnel costs