What is behind the term “EDI”? What are the benefits of this technology? - And why does EDI only work if you see it as more than just a technical solution? You can find easy-to-understand answers to these questions here:
In the first part of “EDI explained for beginners”, we provide easy-to-understand information on what EDI is and the benefits it brings to companies. If you are aware of some of the technical and organizational aspects, you can use EDI effectively.
1) What is EDI?
EDI is an abbreviation. It is derived from the English term “Electronic Data Interchange”. In German, this is translated as "electronic data interchange". This refers to a technology that companies use to process orders (e.g. orders, delivery notes, invoices). Instead of sending documents by e-mail, for example, and processing them manually, they are transferred directly “from computer to computer” – in a fixed format that both sides understand.
2) What are the benefits of EDI?
Accelerating processes through automation brings economic benefits to a company. Avoiding human error leads to higher turnover, while at the same time reducing personnel costs. The use of technology also shapes the external image - business partners appear more professional and are more interesting for new cooperations.
3) EDI – made simple?
The introduction of EDI in a company first requires a strategic analysis: What can be done in-house vs. what special technical knowledge must be purchased from external service providers? Does it make sense to carry out all connections in-house vs. outsourcing the connections to an external company, resulting in a reduction to a central interface between the company and the service provider?
The effort and challenges are defined according to the decision. Human perception, which may perceive software, interfaces and maintenance more as a hurdle than a solution, also requires appropriate attention.
In summary: EDI can do a lot. However, it requires the appropriate knowledge and understanding that processes are only as successful as the people designing them in the background. Only a well-thought-out digitalized process is a good digital process.
Picture credits:
https://www.bigstockphoto.com/de/ - File no.: 464798219
