The benefits of using EDI are being realised by an increased number of company's. Many transmit a substantial percentage of their transaction volume via EDI.
One of the major goals in creating EDI was to reduce the volume of paperwork and many of the clerical tasks involved in processing paper documents. Substantial productivity improvements and/or direct cost savings in company operations have resulted from the use of this technology. Consider these benefits
Electronic transfer of data eliminates the use of manual data entry and re-keying thus reducing the number of errors which improves availability of product and services. This reduces process cycle time.
Using EDI increases the speed of document your trading partner receives and reduces the time taken to incorporate the information into their system, thus greatly reducing overall cycle times. For this reason, EDI can be an important component of just-in-time production systems.
EDI will lead to a reduction in document processing and costs. By implementing EDI your company costs associated with paper handling, data entry, filing, reconciling and lost documents are eliminated culminating in cost avoidance.
According to the 2008 Aberdeen report "A Comparison of Supplier Enablement around the World", only 34% of purchase orders are transmitted electronically in North America. In EMEA, 36% of orders are transmitted electronically and in APAC, 41% of orders are transmitted electronically. They also report that the average paper requisition to order costs a company $37.45 in North America, £26.38 in EMEA and $23.90 in APAC. With an EDI requisition to order costs are reduced to $23.83 in North America, £20.94 in EMEA and $14.78 in APAC.
In addition to improving speed, cost and accuracy, EDI can enhance the business in a number of other ways, informed decision making, improved customer service, enhanced partnerships and improve cash flow.