April 13, 2021 0 Comments Business

What is an EDI Platform And What Are The Benefits to Business?

Today we are going to discuss one particular area of technology which is absolutely critical for businesses and which is used the world over for its range of benefits. The technology in question is the EDI platform, or electronic data interchange. Here we are going to discuss what this technology is all about, how it works and most importantly how it is able to offer such a broad range of benefits to those companies which use it, especially those which fall within the supply chain. This is not new technology by any stretch of the imagination, but in a digital world it is more important than ever before. 

What Is EDI Technology All About?

Electronic data interchange technology first came about in the early 1950s and it was used by shipping companies. The idea was that you could quickly send documentation under a standardized format, using certain coding which referred to particular pieces of information. This was used in ports for the transfer of order sheets, receipts and of invoices. The technology in the modern age is not much different to how it was when it was first introduced, yet it is now used in a wider range of sectors and industries. 

Advantages of Using EDI Technology 

Simply put there is no safer, faster or more secure way of sending information than through an EDI platform. The benefits it offers to businesses therefore is huge. Let’s start with the cost savings of this technology, which is arguably one of the greatest benefits which it can offer. When compared to the preparation and sending of information via paper, there is much to save. Labor costs of sending information, costs associated with materials which are required is also an area on which businesses can save. Beyond this there is a far higher accuracy level with this approach, given the automation, and that also results in costs savings as a result of no human errors. 

It is not just the cost savings which make EDI attractive however. The speed and the accuracy of the information lends itself to better relationships with clients and customers. As mentioned above, the security of this method of sending data is also absolutely critical in business. EDI systems are designed in such a way that only authorized users are able to send information, which thus increases the security and the trust which businesses have in each other. 

Use in a Digital World

In a world of ecommerce and digitalization there is a greater demand for transparency, for real time information and ultimately for speed. This technology is the perfect solution to these potential problems and it is why there are so many within retail, shipping and logistics which are looking to use an EDI platform to go about their business and to work with their clients and partners. 

This is very much an old idea but it is one which is proving to be incredibly important in the new age.