Electronic Data Interchange (EDI) means the exchange of business data electronically, usually from one computer application to another. The transfer of information is completed in a structured predetermined format between 2 or more business partners, over a secure network.
This is an option when managing a B2B operation on site could be a problem, whether due to staff shortages or technical expertise. Falcoe Software provides an EDI-hosted service that will operate and manage all system software /hardware and provide full support for your B2B operations, without the necessity to have software installed on site.
Companies using EDI Software
Leading companies across the world use EDI and many are moving towards doing the majority of their business transactions electronically.
EDI is established in the UK retail sector and used throughout the supply chain. It is relied on by the major retailers typically in Grocery, Catering, Building /DIY and the Publishing sectors.
A guide to some of the leading UK companies using EDI can be found on our Trading Partners page.
Benefits of EDI Software
EDI advantages become apparent when the technology replaces the manual processing or re-keying of business data.
Orders and Invoices are processed electronically, improving data accuracy and lowering administration costs. There is a reduction in the level of queries and an improvement to the supply chain.
With the introduction of new messages such as ASN (Advanced Shipping Notes), companies can be made aware of delivery shortages and identify potential order problems at the beginning of the business cycle rather than at the end, when the ordered material is shipped.
Forecasting reports provide the supplier with the data to manage production and stock levels more efficiently.
EDI software can be financially beneficial to all parties with fewer out of stock issues and lost sales.
Disadvantages of EDI
Cost, an initial investment is usually required
Reliance for support on the EDI supplier
A certain amount of training is often required
When a VAN (Value Added Network) is used to transfer the documents, this can lead to ongoing mailbox costs and reliance on a third party organisation.
What is Integration Software
EDI data integration is explained where a company configures a direct link from the electronic documents received to the back-office system.
This provides the capability to process EDI Orders/Invoices directly in and out of internal systems. Falcoe provides the lowest priced data integration software in the UK.