What is Electronic Data Interchange?
Electronic Data Interchange or EDI software helps businesses exchange files or information. Various data used by companies for exchange can be healthcare records, invoices, purchase orders, etc. EDI automates and improves business processes such as order processing, supplier deliveries, customer shipping, etc.
What are the components of EDI Software?
EDI Software has the following four major components:
Standard Document Format: It is a standard format agreed upon by both parties to access information.Translator and Mapper: The mapper provides specifications to the translator to convert raw data into meaningful information.Communication Software is used to transmit data and convert documents into business formats.Communication Network: It provides a direct link between businesses to exchange data or documents through EDO Software.
Benefits of EDI software
Following are some of the benefits or advantages of EDI software:
Speed
Manual order processing requires you to enter, file, and compare data, which takes more time. EDI automates these processes and speeds up business cycles. Order-to-cash and Purchase-to-pay cycles are accelerated multiple times.
Paperless and Environment Friendly
EDI reduces transport industry dependency on paperwork, leading to a reduction in CO2 emissions. It is environmentally friendly and thus promotes corporate social responsibility. Reducing paperwork also reduces the costs involved in printing, reproduction, storage, filing, postage, document retrieval, and complaint handling.
Cost Saving
How EDI helps in cost saving:
Automation through EDI reduces the number of people involved in different types of work like ordering, delivery, and invoicing, thus reducing the cost of hiring staff.It reduces heavy paperwork, which in turn cuts costs.Processing an order through EDM costs approx. $1.35 as compared to $38 when done manually.It saves overhead expenses that can be caused due to lost orders, illegible faxes, or other errors.
Precision and Accuracy
Manual processes are prone to errors resulting from incorrect document handling and handwriting errors. EDI helps reduce errors and transactions. It allows businesses to improve data quality, business-partner transactions, and relationships.
Business efficiency
EDI solution ensures that B2B critical documents and shipments are delivered safely and promptly. The software helps to improve cash flow. Automating paperwork helps businesses concentrate on high-value tasks and reduce the re-work of orders.
Business Strategy
With the help of EDI, businesses can adopt a demand-driven business model instead of a supply-driven model. It helps companies to enable real-time visibility into transaction status and meet customer and market-changing demands. The software supports businesses in covering new markets and entering new territories.
Customer Satisfaction
One of the benefits of using EDI is faster deliveries, tracking orders, etc., which increases customer satisfaction and helps businesses retain their customer base.
Smarter Stock management
EDI helps businesses predict the amount of stock they will need to meet customer demands in the near future. It then helps manage stocks smartly, cutting storage costs and saving money.
Transaction Security
EDI secures data transfer across various communication protocols and security standards and thus enhances transaction security. Following is a list of the best EDI software this year:
Cleo Integration Cloud
Cleo Integration Cloud (CIC) is a top-rated EDI solution that automates every EDI process, onboards partners quickly, and enhances visibility. CIC supports businesses of all sizes, from small and medium-sized businesses to the world’s largest enterprises. Onboard Partners Faster: CIC leverages proven pre-configured EDI templates, allowing you to spin up connections that work with your partner’s EDI systems in days rather than months. Enhance EDI Visibility: With CIC, technical and business users gain visibility into underlying business processes. You get actionable insights into the business value that each EDI document represents, presented in the context of its impact on the broader business. Automate and Scale: By giving you the ability to consolidate multiple business processes and functions under a single solution, CIC provides the support you need to grow on your own terms and timeframe. Additionally, CIC offers countless other benefits, including:
Notifications when errors occur in the supply chainTransparency into where an error occurred in the supply chainVisibility into real-time dataCustomizable business logicAutomation toolsPre-built partner mapsPre-configured integration templates Rich API connectorsVast protocol support24/7 customer supportSLA complianceCustomizable business logic
When it comes to service options, businesses can choose from self-service, managed services, or a blended approach – ensuring complete flexibility and control over their EDI integration strategy.
Jitterbit
Jitterbit is one of the best platforms to streamline business processes and transactions. It automates business processes and allows them to manage retail/manufacturing, distribution, and supply chain management. Following are the key features of Jitterbit:
Low-code integration system.The platform helps to connect and process businesses from end to end.It provides pre-built, easy-to-implement connectors, templates, etc. The Jitterbit team helps to customize integrations or manage them.Process change tracking.Visual workflow management.Process modeling and designing.EDI splitter that allows businesses to split and organize files.
The platform helps businesses to connect with trading partners and manage them. It manages outbound or inbound transactions and supports cloud-or on-premise ROI insight.
Oderful
Oderful is a complete cloud-based EDI software that has made onboarding easy for various companies. Following are the key features of Oderful:
It is one of the fastest cloud EDI software for manufacturers, distributors, technology companies, and retailers.Access over 1,500 retailers, manufacturers, carriers, distributors, and 3PLs.It helps connect with API quickly to validate, communicate, or translate data.It supports validating real-time data as per guidelines.It provides full customer support to solve EDI problems.
This EDI platform is best for setting up and future-proofing your EDI infrastructure.
SPS Commerce
SPS Commerce helps businesses with centralized data sharing between enterprises. The software is designed to meet the demands of various companies such as eCommerce, retail, grocery, logistics, etc. Following are the key features of SPS Commerce:
It is a cloud-based and AI-powered platform.Easy-to-use platform, no expertise required.It supports integration with over 200 tools such as ERP, TMS, and other applications.The software provides one-on-one chat support.It helps gather data in formats API, spreadsheets, raw data files, etc.Auto-fill feature to save time filling long forms.It notifies you every time you receive an order.
Other important features of the platform are processing orders, real-time tracking, automated data entry, bulk invoicing, etc. It helps businesses connect, streamline and stay updated on all order purchases.
TrueCommerce
TrueCommerce is an EDI software that helps businesses automate and streamline business processes. It allows companies to expand globally and stay connected across the supply chain. Following are the key features of TrueCommerce:
It is a web-based platform that formats all EDI transactions.It helps to convert raw data into error-free documents such as invoices, POs, etc.It is an all-in-one platform to stay connected with your suppliers, customers, and business channels.Data formats supported by the platform are XML, CSV, and many more.Provides business analytics to manage inventories.It supports businesses to expand by connecting them to over 92,000 trading partners.It helps streamline order fulfillment, enhance transaction transparency, and reduce the order-to-cash cycle.
TrueCommerce helps businesses to track information and stay updated with online orders. It supports integration with other applications to eliminate manual data entry, reduce errors, increase accuracy, and more.
Epicor
As 1EDIsource, Epicor integrates electronic data transfer in formats like XML, CSV, web services, direct ODBC, etc. The platform can be used as standalone or through managed services, thus providing businesses with choices according to their requirements. Following are the key features of Epicor:
It allows integration with applications such as SAP, Oracle, Sage, JD Edwards, etc.Epicor has a good customer support and helps solve issues with billing and order tickets.The platform provides real-time business transaction visibility.It provides analytics tools to improve decision-making.It automates business processes minimizing manual data entry and thus reducing errors.It provides quicker document processing, minimizing order-to-cash time.
The platform is ideal for small to medium-scale businesses. It helps companies to streamline operations with trading partners.
Bebelway
Bebelway with innovation their objective automates data flow between businesses seamlessly. It provides and supports easy B2B integrations. Following are the key features of Bebelway:
Automation through Babelway helps reduce partner onboarding time.Flexible to work with any format as per your business needs.Allow businesses to choose from a catalog of transaction types or previous transactions.Provides a visual drag-and-drop tool to move data.It helps companies get complete visibility and control over all B2B exchanges.Error-tracking to identify weak points in integration.Provides maximum security by archiving all documents.
Final Words
EDI (Electronic Data Interchange) software helps businesses share and exchange data between two systems seamlessly. As the pandemic hit, companies understood the importance of going paperless, and EDI played a crucial role. It allows organizations to do business from anywhere at any time. We have listed the best EDI platforms in the above sections. Review all the features of these platforms and choose a platform that best fits your business needs and requirements. You may also look at some of the best eSignature platforms to take you one step further in going paperless.
