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Benefits of using electronic data interchange
i. Remove document re-keying
By removing the manual keying of Key business documents such as orders, invoices acknowledgments and dispatch notes your company can benefit significantly by:
- Reduced labour costs
- Elimination of human keying errors
- Faster document processing
- Instant' document retrieval
- Remove reliance on the postal service
ii. Eliminate Paper
Paper-based trading relationships have some inherent disadvantages when compared with their electronic trading equivalents'/which include:
- Stationery and printer consumable costs
-Document storage costs.
- Lost documents
- Postage costs
iii. Reduce lead times and stock holding
- Electronic trading documents can be delivered far more quickly than their paper counterparts, thus the turnaround time from order to delivery can be reduced
- By using EDI for forecasting and planning, companies are able to get forward, warning of likely orders and to plan their production and stock levels accordingly.
- Companies receiving advanced shipping notes or acknowledgments know in advance what is actually going to be delivered, and are made aware of shortages so alternate supplies can be sourced.
- Integrating electronic documents means they can be processed much faster, again reducing lead times and speeding up payments.
iv. Increase quality of the trading relationship
- Electronic trading documents when printed are much easier to .read than copies, faxed or generated on multi-part stationery by impact printers.
- Accurate documents help ensure accurate supplies.
marto answered the question on February 5, 2019 at 08:43
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