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During this digital transformation of logistics, companies need to understand: what is Electronic Data Interchange or EDI? And how does it enhance the entire supply chain process?   

What is Electronic Data Interchange?  

Electronic Data Interchange is, as its name suggests, interchanging data between companies electronically, computer-to-computer, avoiding paper-based documentation. Implementing EDI to company workflows will allow the process to become more seamless and straightforward.   

 Standardization with EDI  

EDI allows your business to standardize the interaction between all the parties involved in the supply chain by integrating the various systems and software each company uses. With EDI, you’ll be able to link your systems to the systems of your logistics partners, giving you full visibility and accurate information so you can manage your freight and processes safely and confidently.   

Even though this allows the process to run smoothly, there must be an initial agreement between the parties involved for the correct usage and exchange of information.   

Constantly evolving processes  

In a world where processes are constantly evolving, and nothing is static, it’s essential to have complete visibility of your business to be ahead of the game. Having accessible information allows you to see what’s going on with your company. If something is not working, you’ll be able to make the required changes to your process and adapt to the current environment. The supply chain demand is ever-changing, and businesses must adapt to the trends that arise.   

Benefits of Electronic Data Interchange  

  • Reduced data entry manual labor   
  • Simplifies processes  
  • Increase productivity  
  • Reducing data errors  
  • Overall performance improvement  

Electronic Data Interchange has become an essential part of the entire supply chain. Companies must integrate EDI into their processes to improve their performance and create better relationships with clients. Leveraging the digitalization of the logistics industry means staying ahead of the game and implementing strategies that incorporate technology for your business

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