The Benefits of Going Digital: EDI Solutions for the Supply Chain
When it comes to the supply chain, efficiency is crucial. Interchanging data between clients and managing B2B transactions needs to quick and accurate, to get products out the door and to provide adequate cash flow. If a supply chain is not as streamlined as possible, then the business is basically wasting resources and throwing money away. Wasted resources could be any number of things, from used paper products, spent energy, incorrect orders or idle equipment. Automating the B2B processes cuts down on waste and helps to establish a more streamlined operation.
The average office worker uses around 10,000 sheets of paper over the course of the year, according to Reduce.org. Many of these papers are forms for suppliers and clients, completed over and over again with redundant information and slow turnaround times. Multiply that 10,000 sheet figure by the number of employees at a given company and the costs of using so many paper forms becomes staggering. Even more so when businesses expand and add more suppliers.
In addition to overhead costs, relying on physical files for B2B transactions can sap productivity from employees. EDI software can help a company use less paper and reap the benefits of a more efficient supply chain.
Speed and Accuracy
Speed and accuracy are two things you need when dealing with suppliers and clients. EDI software gives you both by cutting down on the waste and establishing a more efficient process of exchanging data. According to EDI Basics, EDI software can improve the order-to-cash cycle time by 20 percent. This improvement means stronger client relationships, and faster turnaround time on transactions. The processing of business documents through EDI software cuts down on redundancies and mistakes. In addition to saving time, this improvement leads to fewer cancelations and less need for costly and timely corrections.