Most businesses have heard of or are transacting with organizations that use EDI. The basic premise is that EDI will interlink the systems of the organizations on both sides of a transaction, reducing the time it takes to ship goods, thereby saving costs. However, in reality, the costs savings are significant and affect almost all areas of an organization. According to Act Data Services, Inc. 1-800-ACT-DATA, here are some of the areas where you will see savings:
Chargebacks are fees that the supplier gets charged from customers for faults, damages, or specification issues with merchandise. Often, those issues are the result of human error during data entry. EDI almost entirely removes the potential for human error for systems that transfer data.
One of the key delays is the time it takes to go from order to ship a product. Research and polls show that with EDI, warehouse shipments can move out as much as 50% faster. Organizations that took two to three days to ship goods can now do so in as little as a single day.
Another area that has the potential for cost reduction are payments and invoicing. Your organization can save as much as 90% on the cost of transaction payments when switching to EDI. Your invoices are sent out faster, and you get paid sooner.
The beauty of EDI is that all of this happens automatically in the background, allowing your staff to focus on the tasks that matter the most.