What are the Benefits of EDI

Written by Act Data Services, Inc. 1-800-ACT-DATA

EDI continues to prove its worth or organizations as a bridging electronic communications format. According to Forrester research, total EDI transactions surpassed 20 billion in 2014 and continues to grow. This has resulted in millions of dollars in savings for buyers and sellers alike. There are several benefits to using EDI, here are three of them:

Cost Savings:

There are tremendous cost savings when using EDI. For starters the expenses of paper, filing, storage, postage and the time associated spent on processing is where the cost savings come in. Some estimates put the average savings at 35%. For example a major electronics manufacturer stated that costs when from $38 to $1.35 per order when using an edi provider.


Another benefit of using electronic data interchange is speed and accuracy. Transactions are completed in minutes or even seconds. Compared to days or even weeks if the postal service is used to exchange documents necessary for the transaction. Accuracy is improved greatly as the chance of human error is reduced.


The third benefit is the improvement in business efficiency. Employees become more productive when they can put their time and effort into higher level tasks. The accuracy leads to less mistakes and no need for orders to be redone. This efficiency can mean lower inventory and storage costs as items can now be ordered faster.
Act Data is an EDI service provider that provides EDI outsource for retail and supplier environments.