4 Oct 2019

EDI Myths That Have To Be Busted

Post by Jordan Toplen

Small and large benefits gain huge benefits from proper EDI integration. Even so, not much is known about the technology so numerous companies do not trust it. Unfortunately, when it comes to anything related to EDI, from software to the EDI invoicing system, there are myths that popped up. These have to be busted so that you can fully understand why EDI is, most likely, something you have to consider buying as a business owner.

EDI Is Very Expensive

Many businesses do not integrate EDI since they assume everything will become a very costly endeavor. The truth is there is a cost that is associated with good EDI integration. Even so, it is more than worth it since it is basically immediately justifiable. Just think about the fact that really big retailers like Target and Walmart do not even do business these days with the shipper fulfillment and retail companies that do not use EDI integration.

Keep in mind that EDI practically costs just a fraction of how much it would cost to create everything you need in-house. EDI integration also helps you to get more business as it reduces chargeback risks.

EDI Is Very Complicated

Many think that EDI integration is very complicated but in reality, the entire business is simplified when EDI is used. Many vital business practices are streamlined by EDI integration. At the end of the day, this leads to better communication. All the documents and languages that you have to deal with when shipping products, as an example, can be complicated and the paperwork tends to be immense. As EDI uses the exact same language in all operations, everything becomes standardized. Using EDI is much simpler than you might think.

EDI Is Disruptive

This is a much more common misconception than it should be. EDI system integration will not interfere with regular business practices. While it does take some time to set up, the payoff you get is almost immediate. Through electronic data exchange, you manage to decrease how much manpower is necessary to manually process paper orders. Transactions end up flowing faster.

Shippers can redirect man-hours to business processes that are much more critical. In addition, the data transfer that happens between 2 computers is always more reliable and more efficient. There are fewer errors that happen than with regular manual data inputs. A paper order can easily end up taking 10 days or more to fulfill. With EDI integration, orders can be processed in just one day.

EDI Has Many Bugs

Some businesses avoid EDI integration because they think they will need to deal with various bugs as the system is set up. This is not the case since approval and testing are always handled by the service provider.

To put things as simple as possible, the service provider will do all the work for you. Some even offer training if it is needed. The system is launched only when it is fully operational. Because providers have been doing this for a really long time, the possibility of having operational bugs is really low.