April 03, 2023

Electronic Data Interchange (EDI): An Essential Tool for Achieving Manufacturing Excellence

what is edi?

Electronic data interchange (EDI) is the computer-to-computer exchange of business documents in a standardized electronic format. EDI allows trading partners to exchange documents quickly, accurately, and efficiently, without the need for manual data entry. Some common EDI documents include purchase orders, invoices, and shipping notices. 

Why Add EDI to Your Manufacturing Tech Stack?

EDI has revolutionized the way businesses communicate and exchange data. It has become an essential tool for businesses in different industries, including manufacturing. In this blog post, we'll explore why EDI is important for manufacturers and how it can benefit their business operations.

Enhanced Supply Chain Efficiency

Manufacturers rely heavily on a smooth supply chain to keep their operations running efficiently. EDI can help streamline the supply chain by automating manual processes, reducing the likelihood of errors, and increasing the speed of transactions. For example, when a manufacturer receives a purchase order from a customer, it can use EDI to automatically process the order, generate an invoice, and send it back to the customer. This eliminates the need for manual data entry and reduces the risk of errors.

Improved Data Accuracy

Data accuracy is crucial for manufacturers as it can impact various aspects of their business, including inventory management, production planning, and order fulfillment. EDI helps improve data accuracy by reducing manual data entry and the possibility of human error. This, in turn, leads to better decision-making and more efficient operations.

Faster Transaction Processing

In the manufacturing industry, delays in transaction processing can lead to production delays, inventory shortages, and other issues that can negatively impact the business. EDI helps manufacturers speed up transaction processing by automating manual processes and reducing the need for human intervention. This leads to faster order processing, invoicing, and shipping times, which can improve customer satisfaction and loyalty.

Better Inventory Management

Manufacturers need to have accurate inventory information to ensure they have the right materials and products available at the right time. EDI helps improve inventory management by providing real-time visibility into inventory levels, reducing the risk of stock-outs or overstocking. This also helps manufacturers reduce carrying costs and optimize their supply chain operations.

Increased Customer Satisfaction

In the manufacturing industry, customer satisfaction is critical to business success. EDI can help improve customer satisfaction by streamlining the order fulfillment process, reducing errors, and improving communication between manufacturers and customers. This leads to faster order processing and delivery times, which can improve customer satisfaction and loyalty.

Guide Technologies: An Essential Partner for EDI Implementation & Optimization

EDI is an essential tool for manufacturers as it helps streamline their supply chain operations, improve data accuracy, increase transaction processing speed, optimize inventory management, and enhance customer satisfaction. By adopting EDI, manufacturers can stay competitive, reduce costs, and improve their business operations.

Guide Technologies is an essential partner for EDI implementation and optimization. We partner with our customers to ensure their Infor ERP solutions are implemented, optimized, maintained to yield maximum value. This includes ensuring that tools, such as EDI, are delivering equally robust value to our customers. We even developed an EDI 2 ERP solution built specifically for Infor XA.

Ready to learn more about how EDI can enhance your Infor XA or Infor CloudSuite Industrial ERP solution? Contact the Guide team today for more information.