EDI standards are a means of transferring data electronically and has the potential to provide enormous benefits for companies in the electronics manufacturing supply chain.
Electronic data interchange (EDI) facilitates the direct transfer of data between business partners in a standardized electronic format. With EDI software, automation of processes is a major benefit with a drastic reduction of paper.
What are the Main Benefits of EDI?
Implementing EDI provides an organization many benefits. EDI can speed up business cycles, with transactions completed within minutes rather than over the course of days or weeks. Processes can be automated, and the quality of data is improved, resulting in a reduction of manual input and processing errors as well as errors from illegible handwriting or faxes, lost orders, and more.
EDI can also improve the order-to-cash cycle time which enhances business relationships and organizational finances. Speed and accuracy grow, and EDI communications are clear and complete and require far less follow-up work than manual, non-standardized communications.
EDI can also provide larger organizations with significant cost savings, but be expensive to implement and maintain for smaller businesses. For big companies the benefits of EDI software help reduce cost per transaction, as expenses associated with paper, postage, storage, filing, and document retrieval are reduced or eliminated.
As errors decrease, costs go down as well, and employee resources can be devoted to strategic business objectives rather than manual processing and error resolution.
Costly Implementation and Upkeep
However, EDI has some drawbacks as well. There is no single standard for EDI, so your system may not be compatible with all partner systems. Additionally, software applications may need a significant redesign to work with a new EDI system, which can be costly and time-intensive.
EDI implementation can put a lot of pressure on your existing network and may require system or equipment upgrades and further investments of time and money.
Finally, the major drawback for adopting a full EDI system is the cost – an EDI system itself is expensive. Purchasing an EDI system and paying for expert installation and maintenance, in addition to network upgrades and software redesign, is a very costly proposition, one that puts EDI out of reach of many small to medium-sized enterprises.
How can you Implement EDI Without the Cost?
Companies that see the benefits of EDI, but aren’t ready to take on the maintenance and upkeep of a fully built platform, can turn to EDI software alternatives like Orwbeaver. Advancements in EDI technology can help a company see the benefits of EDI without incurring the costs of a full EDI installation. Orbweaver provides an EDI intake and translation system that is compatible with all internal systems and external business partners.
Orbweaver Connect is the only system created for electronic data exchange between partner companies in the electronics manufacturing industry. It works as a translator, taking input from a variety of formats and translating it to a standardized format in a centralized repository. It can also take data from internal systems and translate it to whatever output is required to communicate with partner system.
Best of all, Orbweaver Connect is an application program interface (API) that installs to your existing network and equipment, eliminating the need for costly upgrades. It works with internal software applications and with any and all partner systems, eliminating compatibility issues.
With Orbweaver Connect, your company can realize the benefits of EDI: automation, speed, accuracy, efficiency, and cost savings, without the cost and complexity of a full EDI implementation.