EDI has been a great success for companies. With implementing EDI there are accelerated turn around times, better accuracy on inventory items and less human errors. EDI is a transmission of data between organizations by electronic means much like a business conversation between entities. More than a hundred thousand companies have switched to EDI software from the more traditional version.

With EDI purchase orders are sent out and retrieved much faster. Once a purchase order is submitted, it is transferred into a data format and submitted to the appropriate party via internet or through a VAN (value added network). This can be done in a matter of seconds’ versus the traditional way of submitting purchase orders which took days or weeks to be hand written and sent through the mail.

This format through EDI also saves a large cost on paper from the elimination of hand written purchase orders that were mailed or faxed. Electronically submitting the purchase order now can virtually eliminate the cost of paper. EDI also can eliminate human errors due to checks and edits available for the document.

Due to faster turn a rounds for purchase orders, efficient inventory levels are maintained. This will contribute to better use of warehouse space, and less out-of-stock problems. This can also lead to savings in freight cost by eliminating some errors in last minute delivery surcharges due to out of stock issues.

As you can see, implementing EDI software has many advantages. Better organization throughout the company along with a profitable return. EDI software will help several areas of an organization from Customer Service, Purchasing, Accounting, Warehouse Management, Shipping and Production.