5 Things You Didn’t Know About EDI Integration Software [Explained]

Share on facebook
Share on twitter
Share on linkedin
edi integration software

Global electronic data interchange software is projected to reach USD 3,451.3 million by 2027. Commercial retailers are using these systems to manage orders and pay vendors on time. Current businesses could greatly benefit from adopting this system of exchange and security.

EDI software integration is one of the first e-commerce applications used for transmitting business transactions. This means that clients can securely exchange documentation and data through a series of processes. We’re going to breakdown 5 things you may not know about our current EDI integration software.

1. EDI Requirements

EDI or Electronic Data Interchange is the structured transmission of electronic data such as purchase orders, invoices, and shipping notifications between different organizations. These are a series of actions that streamlines tedious yet important processes that can affect your business.

EDI can enhance the business because of improved customer service, cash flow, enhanced partnerships, and decision making. The stored electronic data can immediately be accessed by employees. The information provided can be used in the future to make crucial business decisions or as a reference for further analysis.

Within the EDI, we install a communications software of some kind. This data language must also be translated so all parties can transcribe the information.

The communication software would indicate the start and end of a transmission. There are several types of software on the market now that enforce these sets of regulations.

The translation software would build a map of data fields from one application to another. This occurs because different clients may have a separate set of data fields. But, the software can be formatted to comply with the EDI integration standard. This allows ease of access between these data fields.

2. Large Scale EDI

Transactional costs of processing these orders are far lower than handwritten information. Well over 50% of supply chain businesses in America have adopted the EDI software. This is because the resource intervention is minimized or eliminated, so bigger supply chains have adopted this method.

The EDI integration system has been used by most grocery store chains like Food Lion, big-box retailers such as Costco, and almost all third-party logistics firms like Schneider National. Almost everything on the shelves of these businesses got there via EDI software integration.

Retailers use a common model stock for each shop location. Business managers can see the point of sale stock updating. This data is fed through EDI software via a supply chain network. So as the inventory can be monitored and updated.

3. Cleaning up Errors

Certain businesses may start with electronic transfers, but sometimes the information gets sent in, printed out, and re-handwritten into the system. This process is inefficient and is prone to errors. Since EDI integration algorithms rapidly organize this information, we decrease the chance of fatal human errors.

EDI integration increases both accuracy and speed. Businesses without EDI integration software have a greater risk of:

  • Loss of Revenue
  • Loss of Opportunity
  • Loss of Reputation
  • Loss of Security

This software populates orders into the system while auditing for quality control. It further verifies whether the transactions get sent and received. This process allows a commercial dealer to send a large quantity of data from one computer to another computer in a matter of minutes.

4. Documentation System

EDI integration software is more than just a data system. The EDI integration software has hundreds of documents covering most transactions. These document types are used by vendors including Invoices, Purchase Orders (PO), PO Acknowledgement, Advance Ship Notices, and Functional Acknowledgement.

These systems exchange business documents with external entities. It integrates data from these exchanges into your internal system. Thus, it overrides the tedious process of printing and organizing second-hand information. It also relieves institutions such as Management facilities in the Health Care Sector from having to file a massive amount of paperwork.

EDI integration software eliminates paper-based processing. This, in turn, also reduces the cost of labor, ensuring a return on your investment by not needing to hire as much Staff to file records. This method of documentation also reduces postage cost, and storage and printing costs as well.

5. Enhanced Security

The EDI integration software uses various processes to soft check the data. It enhances data security for both the customer and the company. This process involves many communications protocols and various data encryption methods to act as safety nets. All banking transactions related to all financial services and insurance policies are also managed through EDI.

This allows business partners to exchange documentation over a secure network. Many companies use AS2 as a primary trend transmission point or security base. This makes sure that data is not only encrypted but digitally signed. This ensures the partnership between the companies exchanging data is as secure as it can be.

Triple Persistence

In addition to keeping data secure, many EDI integration software systems use the triple persistence mechanism. This ensures that a system is failproof and contains a disaster recovery processing system.

Several online businesses commit to transactions over cloud servers. So when customers seek to do business through cloud operations like Google, they need software that is dependent during business operations.

AS2 encryption

The AS2 encryption uses HTTP channels with a secure encryption signature. Also, there’s an extra layer of encryption underneath the data payload. This in turn will add extra security.

This allows two entities to have a direct connection without a breach of security. So when setting up an implementation between two trading partners, each party must submit cryptographic keys. This sets the standard for the type of AS2 that they want to use.

EDI Integration Software

The world of electronic business is evolving. Organizations must begin to use EDI integration software. The state of e-commerce has shifted since the impact of COVID-19. Many businesses have turned to build an online presence.

This software will allow a more efficient way to keep track of their transactions. The EDI software works well if you need a simple system for sending and receiving orders. It is also an effective solution for businesses that need an integrated system.

AdvanceFirst Technologies

AdvanceFirst Technologies

Leave a Reply

About AdvanceFirst

Since 2003 AdvanceFirst Technologies Ltd has rapidly become one of the most successful specialist EDI companies in the UK. With over 300 clients in more than 20 countries and five distributors around the world we now also have an established global presence.

Recent Posts

Follow Us

Stay up to date with the latest in EDI evolution.

Join our mailing list below to hear all the latest news in the EDI retail and hospitality sector.

Scroll to Top
The Exclusive Guide to Achieving Operational Excellence in Your Supply Chain

Download The Exclusive Guide to Achieving Operational Excellence In Your Supply Chain