{"id":44298,"date":"2022-03-11T14:18:03","date_gmt":"2022-03-11T20:18:03","guid":{"rendered":"https:\/\/www.shipstation.com\/?p=44298"},"modified":"2022-03-24T14:26:21","modified_gmt":"2022-03-24T19:26:21","slug":"electronic-data-interchange-edi","status":"publish","type":"post","link":"https:\/\/www.shipstation.com\/blog\/electronic-data-interchange-edi\/","title":{"rendered":"How Electronic Data Interchange (EDI) Can Boost Your Business Efficiency\u00a0"},"content":{"rendered":"\n

Fast-paced working environments demand businesses be adaptable in order to stay competitive and keep customers.\u00a0A whole host of technology has come about to meet this demand. Improvements in on-premise system<\/a> setups and cloud alternatives, marketing technology, and customer management systems all serve to meet customer demands in a competitive market.\u00a0<\/p>\n\n\n\n

Electronic Data Interchange (EDI) is one such area of technology that\u2019s risen to prominence of late. It\u2019s useful for communicating between departments and business partners. <\/p>\n\n\n\n

What is Electronic Data Interchange (EDI)?<\/h2>\n\n\n\n

Electronic Data Interchange (EDI) is a method of sending business documents, information, and data between different endpoints\u2014business partners, departments within a business, etc. with ease. It\u2019s an automatic computer-to-computer process, so it requires little manual intervention.\u00a0<\/p>\n\n\n\n

EDI can be integrated into multiple communication channels to streamline communications.<\/p>\n\n\n\n

Types of EDI<\/h3>\n\n\n\n

There are two major types of EDI. Which one you use will depend on how much capacity your IT department has and how much data you need to send between departments. <\/p>\n\n\n\n

  1. Cloud EDI<\/strong><\/li><\/ol>\n\n\n\n

    Cloud EDI uses solely cloud-hosted systems to transfer data between users. The cloud system reduces the need for manual maintenance and running costs, as this is built into the cost of the system. This is particularly useful for small businesses that can\u2019t afford the high costs of on-site hardware. <\/p>\n\n\n\n

    1. On-site EDI<\/strong><\/li><\/ol>\n\n\n\n

      On-site EDI is more complicated than cloud-based. This type of EDI is usually built by the company using it, with all of the associated hardware, software, and staffing costs that this involves. This can give a competitive edge to businesses able to manufacture their own EDI, but it has significantly higher maintenance and initial costs.<\/p>\n\n\n\n

      How EDI Can Improve Your Business Efficiency <\/h2>\n\n\n\n

      There are many key benefits to Electronic Data Interchange (EDI) for business processes. It can be used to streamline communications processes and create a clear flow of information between departments and partners. <\/p>\n\n\n\n

      Within Your Team<\/h3>\n\n\n\n

      Within one team, EDI is useful for sharing important information quickly between individuals and to the whole team when required. You can replace partially or wholly your traditional communication methods to streamline communication. <\/p>\n\n\n\n

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      Data source<\/a><\/figcaption><\/figure>\n\n\n\n

      This will increase efficiency of sending standard documents and allow your team to dedicate more attention to complex processes. Some examples of documents that\u2019s sharing can be standardized and automated using EDI technology are:<\/p>\n\n\n\n