Article by ACT Data Services, Inc.
EDI, or Electronic Data Interchange is an important part of doing business in the technology-saturated 21st century. In an age where everything is computerized, EDI helps streamline the process of communication between companies and makes sure there are less errors, costs, and setbacks during transactions.
A few decades ago, everything related to a business deal would be recorded on paper, and those documents would need to be filed away and organized manually. There would need to be phone calls, faxes, and invoices from one company to another. The companies would then need to record each other’s information in their own documentation systems.
EDI eliminates the need for this by creating a software system that records your company’s information and automatically translates it into a form that is compatible with your business partners’ requirements. You can put your own data through the translator software, but this process can be difficult and complex if you don’t have any employees who specialize in it. An easier option may be finding an EDI provider who can make sure all of your documents are EDI-compatible.
This eliminates much of the risk for human error when you give employees the task of processing and sending this information by hand or by fax. It also cuts the costs of paper, ink, storage, and mailing. EDI also saves your company hours of data input, organization, and filing, letting you be more productive and efficient with your time.