It’s an interesting, and let’s be honest, difficult time for businesses right now. From higher costs to supply chain issues and increasing labour wages, businesses are feeling the heat from all directions. If electronic data interchange, or EDI, is something you’ve been thinking about for a while, or even if it’s something you’re just starting to look at, take a look at these five ways it can help overcome the issues businesses are facing in 2023.
1. Lack of supply chain visibility
It’s often difficult for businesses to be aware of what’s happening in their supply chains. For example, knowing when an order is being sent and exactly what is being sent by the supplier. Using EDI, you can request an advanced shipping notice (ASN) from your suppliers that gives you all of this information. Suppliers can also add serial shipping container code (SSCC) labels to your ASNs, which tell you what’s in an individual packing unit. All this can improve visibility, reduce warehouse costs, reduce manual labour and improve customer service.
2. Non-fulfilment of orders
There’s arguably no worse issue than a supplier not being able to fulfill an order and not knowing about until it’s too late. It can batter your reputation and really weaken your relationship with the supplier, not to mention your customers. But what if your supplier could confirm whether or not they can fulfill a purchase you send to them? EDI can do this using a purchase order response (POR). The supplier can send the POR back to you with information about whether they can complete the order fully, partially or none of it.
3. Payment of incorrect/fraudulent invoices
Paying invoices incorrectly, or worse, paying fake invoices is costly to a business. These days the number of fraudulent emails and activity is only increasing. It’s affecting a lot businesses not just in Australia but around the world. EDI can help with this in a few ways. EDI helps is by reducing errors that occur from manual inputting. This makes it harder for invoices to come back to the buyer with errors. And some EDI providers, like MessageXchange, can build in processes to match and invoice with a corresponding PO number to confirm its validity.
4. Staff burnout from all the manual processing
A big issue for business now is keeping costs and processes streamlined and that’s no easy task. As a business grows, processes increase and if they’re manual, costs inevitably increase too. This becomes difficult to address without automation. That’s were EDI helps, you don’t need to be inputting data into multiple software, you don’t need to create PDFs or emails to send trade documents. It’s all input directly into your software so staff don’t have to enter it, and don’t need to fix OCR scanning errors.
5. Improving sustainability
Businesses are looking at become more sustainable and reducing their impact on the environment. One way businesses are doing this is going paperless by using EDI. Everything is done through your software, so there’s no more printing out documents.
Want to learn more about how EDI could help solve your business issues? Ask our experts by getting in touch below.
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