Why Tech Companies Rely on EDI

Electronic data interchange is valuable in every industry that it's used, including manufacturing, health care, automotive, retail and high tech. Whatever type of business you're in, the standardized electronic exchange of business information between partners reduces turnaround time and drives efficiency. According to EDI Basic, 85 percent of these transactions are performed through EDI

It's no surprise, then, that the technology industry has been relying on EDI transactions for some time. These are companies that are always developing new tools to make peoples' lives easier, so naturally they understand a great product when they see it. How does EDI help these tech companies, day-in-day-out?

EDI's Role in the Tech Infrastructure

Today's tech companies outsource a great deal of their tasks, such as manufacturing and design. Since many tech companies outsource these jobs, it's crucial they they have seamless, efficient supply chains. Outsourcing jobs to reduce overhead only makes sense if it's done with optimal efficiency. That means these companies need to be able to exchange data with their business partners quickly and securely.

EDI solutions make that possible by supplying the framework and the standards for B2B document sharing. The EDI standards make it easier for businesses around the world to communicate information with one another, and they also make it easier for tech companies to enter new markets and onboard new partners. 

"EDI is a natural fit for this fast-paced industry."

Serving a Complex Value Chain

As tech companies are always seeking newer, faster methods of performing tasks, EDI is a natural fit for this fast-paced industry. Data transactions that would sometimes take hours and days to complete can take mere minutes with EDI software, cutting out a tremendous amount of time that was previously wasted. According to EDI Basics, implementing EDI solutions can speed up a business cycle by 61 percent, giving the tech company an edge in a very competitive global market. 

EDI automation serves an industry that is always looking to simplify peoples' everyday jobs. This automation saves employees and their partners countless hours, letting them focus on more important tasks. Removing the possibility of human error from these tasks improves service by cutting down on misplaced or incorrect orders. 

Inventory Visibility

Many tech companies have to manage a delicate ecosystem of inventory. Whether they're shipping products to vendors or to retail locations, tech companies need to manage the amount of inventory they produce and store, as well as the components they use to create these products. Producing more than necessary can be a waste of money and resources. Producing too little can upset business partners with incomplete orders and damage the company brand. 

Thankfully, tech companies have EDI software, which can give a full view of the supply chain and help companies prepare for demand. For this reason, Vendor-Managed Inventory programs have been in demand among tech companies. EDI cultivates quick and accurate data exchange for VMI programs, helping to ensure companies produce what they need without wasting time or materials. 

Tech EDI Standards

EDI has a number of standards that are used in the high tech industry. These standards make it easier to communicate with new partners at a global level, and allow tech companies to enter new markets faster. 

  • ANSI X12 and EDIFACT: These are common standards for exchanging electronic data. 
  • XML: The high tech industry has developed its own industry standard. The most popular XML standard in the tech industry is RosettaNet. 
  • OAGIS: The Open Applications Group Integration Specification is a business language for data integration. It uses a complex series of XML standards. 
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