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EDI tools: 4 Benefits for Manufacturers and Distributors

Electronics manufacturing companies are leveraging EDI tools to thrive in competitive markets and improve supply chain efficiencies.

Shortages in skilled labor, increases in global competition, and rapidly evolving regulatory environments are amplifying the pressure on manufacturers and distributors. Electronics manufacturing companies are leveraging EDI tools to thrive in competitive markets and improve supply chain efficiencies.

EDI, or electronic data interchange, is the transfer of data from one computer system to another without physical document generation or human intervention. EDI systems allow for automated communications and document exchange between business partners, eliminating inefficient, error-prone, and time-consuming manual processes.

The benefits of EDI offers manufacturers and distributors a competitive edge to better compete in the evolving electronics manufacturing industry through:

1. Speed

EDI tools can drastically improve the speed of data exchange between businesses. A recent study found that EDI speeds up business cycles by 61%, improving cash flow for better operational controls. As electronic manufacturing companies gain better operational controls and more visibility into their cash flows, they can more easily identify and take advantage of profitable business opportunities.

2. Security

Traditional processes, such as email, fax, and direct mail, are notoriously insecure and can result in leaks of company and client data. EDI systems adhere to strict security protocols, protecting the exchange of information between two companies to ensure it doesn’t fall into the wrong hands.

3. Savings

EDI lowers the cost of each transaction by at least 35% by eliminating expenses associated with paper, printing, storage, filing, and document retrieval, resulting in considerable cost savings to the business. Additionally, removing manual processes can result in a 40% reduction in transactional errors, reducing costly reconciliation and rework that would also potentially damage customer relationships.

4. Streamlining Processes

Automation will streamline your business processes helping business cycles move faster which shortens order processing and delivery times and improves speed to market. Automation can also enhance employee work by eliminating time-consuming tasks and customer experience which can strengthen business relationships and lead to more business. As processes are reviewed for automation, duplicate work can be removed, saving time and resources.

The list of benefits for manufacturers and distributors goes on and on, but some EDI tools come with a downside. Traditional EDI systems are often costly and require technical experts to support implementation and ongoing maintenance. Additionally, there is no comprehensive standard format, meaning different systems may be incompatible with one another, causing data transmission problems.

To avoid these pitfalls, a comprehensive integration platform, like Orbweaver, can enable electronic data transmission without the expense, complexity, and disruption of a traditional EDI implementation.

Orbweaver Connect is a data transmission platform created expressly for use in the electronics manufacturing industry. Connect works as an adapter within an API, EDI, or Excel system, translating and transferring data to and from different system formats regardless of cross-functional compatibility.

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