EDI

Myth 3: “EDI will speed up your order-to-cash cycle”

EDI eliminates the admin bottlenecks that slow down the order-to-cash cycle, but it cannot make a trading partner pay faster.

Transalis·30 November 2020

EDI Mythbuster Series

Myth 3: “EDI will speed up your order-to-cash cycle”

Busting 9 of the biggest myths surrounding EDI

If you’re thinking of introducing EDI to your business, or you already use EDI but are wondering if you’re really getting the best value from your existing provider,you should read this.

EDI has been around since the 1970s, but there is a massive difference between the EDI offered then, and the new Cloud-based EDI available today.But a lot of the old myths still exist – a lot of EDI providers are still peddling their services and inflating their charges with overly complex set-ups and erroneous costs, no longer a factor with today’s advanced technologies.

Myth 3

“EDI will speed up your order-to-cash cycle”

We’d love this myth to be true, but the situation is a little bit more complicated.

Contrary to claims made elsewhere, EDI software in isolation does not necessarily speed up the order-to-cash cycle. This is because it can’t fundamentally change payment terms between producer and retailer, or guarantee payment is paid as soon as possible after invoice.

It does, however, speed up the process between order and invoice and makes sure everything is in place to make timely payment possible. This is because EDI enables trading network’s computer systems to communicate directly, seamlessly and automatically without human intervention.

This approach is significantly faster than the fragmented and labour-intensive processes which involve employees manually keying-in and processing documents using excel and emails. EDI also greatly increases order accuracy, ensuring documents are right first time, every time.

Ultimately, EDI eliminates the admin bottlenecks that slow down the order-to-cash cycle, but it cannot make a trading partner pay faster if they can’t or don’t want to.

Transalis also offers the additional benefits of eInvoicing, such as invoice validation, time stamping, auto-archiving and regulatory compliance, to ensure all documentation is processed and validated as seamlessly as possible.

Sometimes trading partners offer a discount if electronic online invoicing is used because these systems speed up processing and make timely payment much more likely.

For the other 8 EDI myths, download the EDI Mythbuster Report.

EDI Mythbuster Report:

Revealing the truth behind the 9 biggest EDI myths

Essential reading for anyone about to purchase an EDI service

Mythbuster blog posts

Opening the EDI Black Box: How DataTrack Brings Clarity and Control to EDI Messages

eInvoicing Solutions: why they are good for business

The Hidden Costs of Manual Data Entry and How EDI Removes Them

eInvoicing in Europe: 2026 Changes, ViDA and Compliance Guide

Understanding how EDI technology works

Free Report: The Future of EDI

3PL EDI: reducing operational costs with digital transformation

How to Unify ERP, Marketplaces and Logistics into One Connected Supply Chain