Electronic data interchange (EDI) is a software platform that allowstwo companies to exchange business information via computers. They agree on adopting a standard iZedelectronic format when sending or receiving this data. It can be in the form of ANSI ASC X 12, EDIFACT, VICS, AIAG, TAMCS, or EDIX. This enables them to transmit commercial documents within a short time without leaving a paper trail.
Why are companies adopting web-based cloud EDI?
Companies have many options when selecting the right electronic data interchange platform for their businesses. They can choose a point-to-point connection, value-added network, orfile transfer protocol with secure socket layers. However, many of them prefer to operate a web-based EDI system using the latest cloud technology. This platform allows them to receive, process, and send business documents via an Internet browser.
Companiesopt for web-based EDI solutions using cloud technology over an on-premise platform for the following reasons:
- Rising costs of maintaining an on-premises EDI infrastructure,
- On-premises EDI systems are unable to meet their expansion and security needs,
- The systems are not compatible with other business solutions like ERP or CRM,
- Qualified technical personnel are needed to operate the on-premises EDI systems,
- On-premise EDI systemsare not compatible with the latest mobile technology, and
- The software application of web-based EDI platforms is easier to configure and update.
Features of Web-based EDI solutions
Most webbased cloud EDI solutions using the latest cloud technology have the following features:
- Connects all of the companies’ trading partners to a single portal,
- Haveadequate SSL encryption layers to ensure maximum network security,
- Smart filters allow companies to organize their documents as per their requirements,
- Numerous validation levels ensure the accuracy of data being sent or received, and
- Built-in data analytics ensure the generation of real-time reports on demand.
Major factors to consider when installing web-based EDI solutions
Companies should consider the following factors when installing web-based EDI solutions for their businesses:
- The volume of business transactions they generate daily,
- The number of trading partners they do business with,
- Upfront costs of installing the software system,
- The technical expertise of their employees,
- The support service they can avail after installation, and
- Can the platforms meet the present needs of their customers and suppliers?
Top advantages to consider
The companies enjoy the following advantages when operating web-based EDI solutions using cloud technology:
- Easy to set-up and operate,
- Eliminates the use of paper for printing commercial documents,
- Shortens the turnaround time of their business cycles,
- Improves inventory control and management,
- Gets rid of common clerical errors prevalent under the manual system,
- Improves efficiency by ensuring real-time processing of business documents, and
- The platforms can cater to the needs of multiple trading partners
Operating a webbased cloud EDI solution enables companies to automate and streamline their business operations effectively. The costs they incur insetting up and operating the platform are nominal. They can do away with manual processing of paper documentsto eliminate common clerical errors. Companies even notice the turnaround time of their business cycles become shorter. This increases internal efficiency and security with success.