EDI and ERP are two systems that make businesses more efficient. EDI stands for “electronic data interchange” and refers to the ability to transmit data electronically that was once limited to paper. It’s an older technology that debuted in the 1970s and, as such, it is in common use, guided by generally accepted standards that make it ubiquitous in business situations.
Although there’s some push to make APIs the standard instead of EDI, as APIs are standard in the online and web-based world, EDI remains in place for many companies. In fact, in order to do business with some vendors or suppliers, your company may need an EDI in place.
Another reason to continue using EDI: fees. With EDI, a flat fee covers all transfers. It’s easy to predict costs when the fee is the same regardless of volume, a fact that appeals to many companies.
EDI and ERP or Accounting Integration Benefits
EDI and ERP are not either/or solutions. EDI can be integrated with ERP and accounting systems to provide many benefits.
- Better efficiency through automating transactions
- Faster processing time
- Few or no errors thanks to eliminating manual data entry
- Ability to sell in more place, especially international markets
Another major benefit of integrating EDI and ERP is the wide acceptance of EDI as a standard means of data transfer. EDI offers validation and data confirmation among senders and receivers, thus providing assurance that all the information sent during an exchange is accurate and complete. Transactions are traceable so nothing gets lost during transfer.
Supply Chain Benefits
EDI and ERP integration also offers many supply chain benefits. With EDI in place, you can transfer bills of lading, customs documents, inventory status sheets, shipping status and payment information. All this is done automatically, without human intervention making it a highly efficient method of data transfer.
Reduces Mistakes
Whenever people input information into systems or handle documents, it introduces the chance of errors. EDI prevents many mistakes by removing the need for people to pass documents along or rekey information into forms. Instead, it sends the forms electronically, removing an opportunity for errors to be introduced into supply chain paperwork.
Green Solution
Electronic transfer of documents reduces waste: wasted time, effort, and paper. In an age when people are asking companies what they are doing to preserve natural resources, EDI offers a solution: a “greener” and cleaner carbon footprint that eliminates paper waste.
Fast and Sure
EDI tends to be the industry standard in large business-to-business transactions, although many smaller companies are using it as well. Integration with ERP systems provide another route of data transfer that ensures accurate and timely information. Communications sent using EDI are both fast and secure.
Valuable Insights
When EDI and ERP are integrated, companies can gain greater insights into their supply chain and manage orders, expenses, and more through the ERP. ERP systems excel at analyzing large amounts of data, and with the additional data from the EDI, you’ll gain valuable insight into supply chain status that can enhance your ability to manage your business.
Best EDI and ERP Integration for Sage
MAPADOC, now SPS Commerce, is a long-time partner and an industry standard provider of EDI integration with ERP. It’s currently used by over 80,000 partners worldwide.
While retailer EDI requirements change over time, this system keeps up to date, ensuring a worry-free experience for you when it is integrated with Sage ERP. It uses the same coding language as Sage and is backed by Sage programming experts. It provides an excellent EDI solution for Sage ERP systems.
If you’re looking for effortless EDI and ERP integration, look no further. Please contact Emerald TC: 678-456-6919.