How Web EDI Solutions Can Help with Supply Chain Management
Effectively managing a supply chain is the #1 way to find success in the business world. But what does this even mean? Supply chain management basically just means you have everything within the supply chain under control. What is a supply chain, you ask.
Dictionary.com says that the supply chain is “the sequence of processes involved in the production and distribution of a commodity.” This sequence of processes includes everything from the moment a potential customer considers your product or service to the final delivery. Needless to say, there is a lot involved in managing the supply chain, and web EDI solutions can help. But how?
How EDI Relates to Supply Chain Management
First, let’s cover the basic definition of electronic data interchange, also known as EDI. EDI is the practice of electronically exchanging data B2B (or business to business). The entire point of it is to alleviate the communication process between business partners, particularly when it comes to exchanging important documentation.
This documentation comes in many forms, like invoices, inventory lists, and order forms. So how does EDI relate to supply chain management? In short, EDI allows everything within the chain to run more smoothly. It is responsible for alleviating all necessary communication that happens within the chain.
The Benefits of Web EDI Solutions for Supply Chain Management
EDI increases the speed of which business is conducted, allowing all operations to move at a much faster pace. Faster operations mean a better handle on orders as they come in, and the ability to fulfill these orders at a faster-than-average pace. All in all, this enhanced speed of business transactions allows for a higher potential profit margin.
Another benefit of using EDI is the fact that you can eliminate paper usage throughout the company. With EDI there is no need to print invoices and order forms since everything is done 100% electronically. Not only will you save on paper costs, but also the cost of postage. As a business owner, you probably know just how quickly postage costs can add up.
EDI means never needing to send anything through the USPS or FedEx, so you’ll never have to pay for another postage stamp. But most importantly, the elimination of paper and postage is beneficial to the environment. You’ll significantly cut down on the paper you use as a business, meaning you save trees in the long run.
Another major benefit of EDI on supply chain management is improved relationships with business partners. Keep in mind that a major aspect of the supply chain is the people involved. These people include everyone from the customers themselves to the postal workers delivering the product.
When you add EDI into the mix, these business relations have the potential to be improved tenfold. An EDI solution allows for faster, more effective communication with your partners, making their jobs much easier. Studies have shown that EDI investment leads to happy business partners, which in turn leads to more effective supply chain management.