The advantages of EDI as a trading partner
Summary: EDI implementation benefits buyers and suppliers. Suppliers will see increased operating efficiency, more business opportunities, error-free invoicing, faster payment, and reduced paperwork with EDI.
While there are many benefits of EDI for all parties, the primary goal was to streamline and simplify the exchange of business documents from one party to another. Most studies and documents highlight the broad appeal of EDI implementation for larger companies and vendors. However, even small businesses and trading partners can benefit from pre-emptively implementing EDI.
In much the same way that a buyer benefits from the operating efficiency of EDI, suppliers stand to benefit as much or even more. The complete removal of manual data entry and errors resulting from human error alone can justify the cost.
The use of EDI will open up access to buyers and level the playing field with much larger suppliers. There will be equal opportunity when bidding for contracts.
Switching to EDI will speed up invoicing and fund transfer, reducing the time to invoice and removing payment delays due to incorrect paperwork. With increasing levels of integration, invoicing may be eliminated entirely.
The reduction in paperwork extends beyond data entry, orders, and invoicing. EDI offers a single point of entry, making bids and qualification for trading partner status with large buyers easier and faster.