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The Benefits of Electronic Data Interchange (EDI)

Benefits of EDI

Before we can get into the benefits of EDI, let’s discuss what EDI is. According to EDI Basics, EDI is the computer to computer exchange of business documents in a standard electronic format between business partners.

Most businesses have found that operating with a 100% EDI-enabled supply chain increases their bottom line. With that being said, many businesses are making EDI a requirement for their suppliers.

So, how can EDI benefit your business?

  • It’s fast – documents can be exchanged in minutes electronically and its real-time features allow you to speed up decision making and response times
  • It’s accurate – possible errors from manual data entry are eliminated
  • It’s secure – you are notified once your documents have been transferred safely
  • It cuts costs - transaction costs are lowered due to the elimination of paper, printing, storage, filing, postage, labor intensive tasks, etc.
  • It improves cash flow – payment schedules are shorter and more reliable
  • It’s convenient – EDI can integrate with your ERP systems, back office accounts and warehouses to increase the efficiency of your business process

For most small to medium size businesses, EDI’s value is in the speed and efficiency. Replacing slow, demanding, paper-based processes with an accurate electronic system speeds up payments and labor time, allowing you and your employees to invest time into more valuable aspects of the business like developing new products/services and focusing on customer service.

Larger businesses benefit most from the integration capabilities of EDI. With access to a wide range of real-time information, businesses can make educated management decisions and build strategic partnerships.

Implementing EDI would have countless benefits to your company. You can even consider it “going green” since it promotes Corporate Social Responsibility by eliminating paper-based processes.


To learn more about EDI 
Contact Integrated Data Technology at (516) 867-6752 or

IDT Team

Integrated Data Technology is a leading solution provider in New York. Specializing in Business Management and ERP solutions, we identify key technologies and their impact on present and future business practices to help improve our clients productivity and profitability.

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