After nearly 30 years in the EDI industry, the adjectives used to describe the effects of implementing EDI do not diminish in intensity. Words such as ‘revolutionize’ are used to describe the degree of change.
Revolutions, by definition, change the status quo from the root. All too often the benefits EDI can bring at the strategic level go unmentioned or under emphasized. One of the significant challenges for most businesses is to take strategy from concept and then apply it within organizations and with clients.
Opting to use EDI means that you already create the opportunity to overhaul the way you do business. You are not simply automating your business processes but redesigning the way you work, releasing resources from people power, cash, and space (no more paper).
EDI offers support in the following areas:
You’ll be working in real time. This means faster decisions and improved responsiveness to the changing status of the market and customer demands. You gain more control of the process and become more demand-driven.
Unified language of communication for international companies:
The standardized electronic communication EDI provides improves international communications. If conducting business manually with your international trading partners, language becomes problematic requiring extra staff or consultants to ensure proper communication. Automating the process via EDI permits new trading partners to integrate with your process right away. Strategically speaking, having EDI in place gives you a competitive advantage in the international space. Efficient communication is imperative regardless of language barriers.
Bringing EDI into your business process shows a customer-focus through efficiency and automation. When the process of document exchange goes electronic, errors introduced through a manual process become obsolete. The absence of human error removes customer involvement with troubleshooting problems and pursuing orders. For example, when manually filing and handling purchase orders and shipping notices, errors are common and require attention from both sides of the transaction. Moreover, electronically transmitting takes seconds, rather than days. Optimizing your business systems through EDI enables rapid response to customer needs, showing you are customer-focused.
Bain & Company recently conducted a survey that covered 290 executives in B2B industries within 11 countries. 68% of surveyed executives maintained there is a reduction in clients’ loyalty relative to previous years.
Many client organizations are already benefiting from EDI as suppliers and customers elsewhere. If your business does not offer a process that make customers’ lives easier, then they may be looking around for someone providing a method that does.
Freeing your staff from tasks that are now electronically automated results in more time allocated to more useful functions, such as following up on customers and sales. Streamlining your business processes with EDI creates the resources to take on additional business. EDI will also accelerate ROI, improving cash flow.
Corporate environmental responsibility:
A “green” approach is a priority for many industries and managing carbon credits is just a part of it. EDI allows you to reduce paper consumption dramatically.
Here is an example:
A manufacturing company that processes 1 million invoices (equal to a total paper weight of 9 metric tons or 228 trees) would save 55,877 pounds CO2 or the equivalent of emissions from about five cars per year, according to Mark Morley.
How much would your organizational strategies benefit from implementing EDI?
BOLD VAN can help find ways to optimize your business strategies and to leverage your trading partner relationships. Call today (844) 265 3777
Learn more about EDI’s benefits