How ERP-Integrated EDI Can Benefit Your Business


An undeniable perk of the digital revolution is allowing businesses access to millions of customers worldwide. However, this means that customers also have a wide variety of vendors from which to choose, increasing their quality expectations. 

In such a stiffly competitive advantage, every little advantage that increases your productivity and efficiency will go a long way in helping you thrive. This is why most organizations utilize various technologies to streamline their processes, making them faster and more efficient. 

Given the crucial role of procurement in any engineering firm, this is especially one area where you should consider investing in. For a modern supply chain to run smoothly, both parties must provide each other with detailed data as quickly as possible.

One way to ensure efficiency in the procurement process is by integrating Electronic Data Interchange into your ERP. In this guide, we discuss the various benefits your business will gain from EDI.

What is EDI?

EDI stands for Electronic Data Interchange and is one of the several technologies under the umbrella of e-Procurement technology.

EDI, as its name suggests, is the exchange of business data between organizations in standardized formats. This information comprises data such as purchase orders, inventory data, and invoices. Electronic data interchange software, therefore, replaces archaic, manual methods of data exchange such as fax, and is more efficient, standardized, and discreet than email. 

This technology automates any paperwork and data interchange tasks, strengthening the integrity of communication between companies. It, therefore, has several applications and benefits in the supply chain process.

What Are Electronic Data Interchange Benefits?

EDI sounds great, but what are the specific ways in which this technology will add value to your company?

  • Streamlined communication between trading partners
  • Faster order turnaround resulting in better relationships with trading partners and an overall better procurement experience
  • Increased processing speed and transmission times
  • Accurate invoice and  inventory status information
  • Increased savings in document management expenses
  • Reduced data entry errors and information accuracy
  • Reduced data interchange expenses
  • Reduced reliance on paper-based document flow.

Electronic data interchange benefits will work for every company. EDI is a simple and direct method, eliminating the need for cumbersome piles of paperwork. It also means there is less interference with the data because there is no room for human error or interference. For its purpose, EDI is seemingly perfect. So, why do we need to enhance electronic data interchange software with ERP integration?

What is ERP-Integrated EDI?

To begin with, ERP stands for Enterprise Resource Planning. It is a combination of different technologies creating a unified system that companies use to integrate and thus easily manage their core business operations.

So, ERP-integrated EDI is EDI integration that has been designed to fit the unique ERP of a company.

Why Do Companies Need ERP-Integrated EDI?

EDI documents are processed by software. Standard formats are needed so that the computer system of any organization can read and comprehend the files that are exchanged.

Since EDI solutions are so popular, there are many different EDI standards in the market. You need an EDI that works with the rest of your software, and that is compatible with that of your suppliers, trading partners, and business partners. Doing this boosts the capabilities of EDI and creates an entirely new experience.

What Are the Benefits of ERP-Integrated EDI?

ERP-integrated EDI is beneficial for companies because it allows:

Automated Transfer of Large Amounts of Data

ERP-integrated EDI automation facilitates the transaction of large amounts of data without any human intervention. There is no need for manual data entry or verification. This process consumes large amounts of time from your team and is rather error-prone. 

There is also seamless communication between the EDI integration and the other functions in the ERP, so there is no need to keep confirming if the right data is being used in a certain place. Whatever information is needed is automatically retrieved, and whatever information needs to be tabulated is instantly saved.

Better Procurement Data Analysis

With all the data related to your company at your fingertips, it is easier to get detailed overviews of the procurement performance in relation to the rest of your company. This convenient, simplified data access is the key to smarter planning.

With an independent EDI automation system, you can only send data. But when it is integrated with the ERP, you can make sense of the data you are transmitting and use it to make decisions.

Enhanced Data Traceability

With ERP-integrated EDI, you will not only simplify data transactions but also track them for accurate record keeping and conflict resolution. With paperwork, it is difficult to keep track of data and even harder to connect different sets of data for analysis.

Key Takeaways

  • EDI is a powerful e-Procurement tool that has allowed business people to keep up with greater demand.
  • EDI solutions on their own are a wonderful asset, but ERP integration makes it more practical and efficient.
  • For greater compatibility, and the best EDI experience, go for ERP-integrated EDI.


Growing companies often face numerous challenges with their growing number of customers and purchase orders. They must find ways of managing their supply chain that will keep them on their upward trajectory, moving to levels where the competition is even greater. ERP-integrated EDI is a step in the right direction.

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