Implementing Electronic Data Interchange (EDI) Software

EDI leads the way for much faster transactions due to the help of maintaining efficient inventory levels. It maintains better use of space throughout the warehouse and fewer out of stock issues. This also saves a loss of revenue in freight cost by decreasing last minute surcharges due to urgent deliveries. EDI also allows for a much quicker process time. Traditional methods were paper purchase orders which could take anywhere from ten days to a few weeks from the time the buyer puts in a request and the shipper sends it off. EDI electronic purchase orders can be processed in a matter of days.

The purchase order process of using EDI is very simple. Once a purchase order is written and submitted the order is translated into a specific format then sent to the supplier via Internet through email or through a value added network (VAN). Both parties must use the exact same format.

To run the method of EDI document exchange and EDI software, all that is needed is a computer and access to the Internet. Also, data security is controlled by using passwords, user identification and encryption.

EDI software that is custom tailored can allow your purchase orders and other data transactions to be placed into a format to which it is tailored to your customer’s needs. To many organizations this can be an advantage do to the fact this software is tailored to your customer’s needs instead of trying to fit your customer’s needs into a software system. Custom tailored software is also easily upgradeable. As your company continues to grow and change your EDI software can also.