What is electronic data interchange (EDI)?
Electronic Data Interchange – or EDI for short – is the ability to exchange documents and transactions from computer-to-computer between businesses in a standard electronic format.
What are the benefits of EDI?
Agriculture supply chain businesses each have their own ERP (Enterprise Resource Planning) system, which is used to manage data, such as orders, confirmations, dispatches and invoices. An EDI connection does not replace this. It makes it possible for two different businesses’ ERPs to speak to each other seamlessly and in real-time, without significant changes in the user experience. This brings notable improvements to business operation, including:
- Reduced errors – Transacting electronically removes the need to repeatedly input data, eliminating the errors – and resulting costs – incurred from manual data entry. No more wasted time or correcting the fallout from simple mistakes. The resources freed up by EDI can then be utilised for improved efficiency and actions that add more value to the business.
- Ease of business – Smoother transactions and communications between businesses, with no need to make radical changes to current ERP systems.
- Increased customer loyalty – EDI helps businesses increase their competitive advantage by offering an efficient and easy ordering option to their customers, with automated updates and real-time information.
Is it right for your business?
An EDI solution is ideal for a business dealing with multiple partners and high volumes. Due to the scale of functionality and automation required, the investment and technical capability is perfect for manufacturers and distributors. Alternative options for businesses in the agricultural supply chain include online order portals and OCR services (link to those separate articles). What solution is best for you? Get in touch to discuss a solution that drives the most value for your business.
Proagrica is the first international provider of these connectivity solutions specifically for the agriculture industry. Our industry knowledge means we understand the pain points and challenges across the agricultural supply chain, and we are uniquely able to work with businesses to solve those problems. We’ve already delivered powerful EDI solutions to leading companies in the sector, including an innovative data exchange for global seed producer, KWS. Expanded functionality has enabled KWS to track seed batches, avoid inventory write-offs, and ensure all parties operate with correct information. This advanced command of their data has in turn helped KWS to monitor their efficiency and increase customer satisfaction by providing reliable delivery dates. We connect your business with your partners in agriculture. More and more businesses in the supply chain are taking advantage of our innovative solutions and extensive network in the agriculture industry, so the benefits provided by data exchange will only grow.