Is your organization compliant? Does it need to be?
Today’s post is from Ryan Melowic; Assistant Vice President of the Procurement COE at SafeSourcing.
Wikipedia defines EDI as the following; EDI which stands for Electronic Data Interchange is the computer-to-computer communication of business documents between companies in a standard format. It is a paperless way to send and receive Purchase Orders, Invoices, etc. EDI replaces human-readable documents with electronically coded documents. The sending computer creates the document and the receiving computer interprets the document.
Some of the benefits of EDI are as follows.
1. EDI streamlines the process and supplies more supply chain visibility.
2. EDI provides increased security
3. EDI helps companies’ lower costs by eliminating manual keying which reduces labor cost as well as well as errors and double entry of data.
4. EDI provide management the information they need to plan and make strategic decisions
5. EDI standards are agreed formats and protocols that trading partners collaborate and agree to use when sending and receiving business documents.
Due to EDI data being electronic data, product sales data, product inventory status, demand forecasts and other metrics can be exchanged with the key stake holder automatically. This allows for better inventory management and tighter control on accounts payable.
If you’d like to learn more about SafeSourcing can help your company explore EDI implementation options please contact a SafeSourcing customer services representative.
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