EDI Basics

Electronic Data Interchange: EDI questions and answers

EDI FAQ. EDI questions answered with everything you need to know about Electronic Data Interchange. Find out what EDI is and how it works.

Transalis·24 March 2021

Electronic data interchange questions and answers

Electronic Data Interchange: EDI questions and answers

New to Electronic Data Interchange? Need to understand what EDI is and how it works? We cover the the top EDI questions and answers in the blog below to help you.

What is electronic data interchange?

EDI stands for Electronic data interchange. EDI is the rapid digitised exchange of data between trading partners. It creates efficiencies for businesses and has a higher ROI compared with paper-based systems.

What are 4 benefits of EDI?

Some of the key benefits of EDI are:

Reduce costs by up to 80%
Improves security
Compliant supply network
Efficient audits

EDI has supported global commerce and industry for decades. It is known as the bedrock of computer-to-computer document exchange across distribution networks and supply chains.

It means you don’t have to raise or process documents manually, or even send them by post and email. You avoid all the extra administration by going digital.

Other advantages of EDI include how it improves so many processes, such as inventory management, shipping, and auditing. EDI automates the exchange of all kinds of business documentation. Largely, EDI means the digital communication of orders and invoices. Although, EDI can also digitise shipping notes, quotes, despatch and returns instructions, tax summaries, debit and credit notes, remittance advice as well as other kinds of documentation and master data.

EDI example: what type of companies use Electronic Data Interchange?

All kinds of companies use Electronic Data Interchange…

From manufacturers, retailers, and wholesalers, to transport and logistics companies and other supply chain partners. EDI is prevalent in all sectors. This includes; food and beverage, white goods, automotive, healthcare, pharmaceuticals, beauty, FMCG and household and business appliances.

Automation with Electronic Data Interchange directly benefits multiple departments within organisations. The key functionalities of EDI benefit finance, procurement managers, accounts, business support, IT, as well as others involved in the processing of trading documentation.

How much does EDI cost?

EDI solutions don’t have to be expensive.

Our best advice is to;

Find a transparently priced solution that is tailored to your needs and can generate a return on investment for you.
Ask the provider about the EDI pricing model and the support they offer.
Be sure that the price reflects exactly the level of help you need and comes with no hidden extras or upfront fees.

At Transalis, our ‘bundle-based’ model provides a complete solution without any additional VAN (Value-Added Network) charges. In other words, there’s no separate, per-transaction fee or penalty for breaching a data limit during a set period.

How to set up Electronic Data Interchange?

Your provider should be able to install your EDI software and make it easy to use. So you don’t have to worry about going ‘under the bonnet’ at all.

The bigger your trading network, the more there is to oversee. Therefore you will want to find a provider who doesn’t just understand the technical need for EDI, but who also understands what you want to achieve as a business.

Do I need to manage and upgrade the EDI solution?

No, your EDI provider should take care of all that so you don’t have to learn the technical ins and outs. Instead you simply access your solution on a remote cloud network via a web browser or API.

How can I encourage my buyers and sellers to use my EDI?

Ongoing success with electronic data interchange depends on your trading network having the same ability as you to receive and send documents. Transalis will help you reach 100% adoption of your partners through a fully-supported on-boarding process featuring training, guides and user testing.

Is Electronic Data Interchange secure?

Yes. Electronic Data Interchange includes security and control elements, such as user identification numbers and passwords.

Extensive data editing and error-checking ensure only valid data is sent and received for processing. EDI provides your organisation with an accurate overview with instant reporting and a full audit trail. You also have a digital archive of invoices to reduce your retrieval and auditing costs. If you have international connections, you have the reassurance that

Transalis is a PEPPOL-accredited provider, compliant for European trade with both the private and public sectors.

What's in it for me?

Electronic Data Interchange is designed to cut the cost, time and hassle of exchanging business documents with your trading network.

It does this by connecting everyone involved with a hosted trading platform. Standardisation across a digital supply chain ensures you and all your connections benefit from digitised information. This minimises errors, maximises efficiency, reduces delivery times and expedites invoice payment. In short, Electronic Data Interchange helps redirect internal resources to more revenue-generating activities and customer services.

Thanks to our handy ROI calculator, you can check your potential savings with Electronic Data Interchange.

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