- October 11, 2017
- Posted by: administrator
- Category: EDI solutions
As we have mentioned in previous articles, logistics is one of the departments that can greatly benefit from EDI implementation. It is a well-known fact that EDI is especially sought-after since it eliminates all the painstaking paperwork and manual processes associated with transactions.
By implementing EDI, your entire company will register better results in all departments, but especially in the logistics department. Apart from all the factual advantages, your company will gain a competitive edge compared to other similar companies on the market who still rely on paper-based processes to run their business. Let us look at four benefits that EDI can bring to your company and boost its productivity.
1. Your business efficiency will soar
This perhaps is one of the most coveted end-goals of any EDI implementation. Automation naturally boosts your company’s efficiency by eliminating manual processes and all the gruesome paperwork. Together with this, human error will be drastically reduced since there will be no need to rekey sensitive information.
And the advantages keep rolling in. You will also notice that order processing times will diminish, together with lead times and you will have greater visibility throughout the supply chain. You will find that once you choose to reap the benefits of EDI technology in your logistics department you will never want to return to the way you used to do business in. However, in order to get the best out of your EDI technology, everyone in the supply chain needs to be on board and boost productivity as a whole.
2. Better, faster communication
Nowadays speed is more important than ever. In the business climate, the faster you are to reach your customers and meet their needs, the greater are the chances that you will stay ahead of your competitors and get a bigger slice of the market share.
The logistics industry cannot lag behind since its operations have always been so time-sensitive. This is how shipping times have become better and better along the years, with great retailers such as Amazon now delivering their products in as little as two days.
EDI helps reduce your company’s order-to-cash cycle time by almost a quarter and speed up business cycles by more than a half their usual efficiency. Apart from this, the relationship between different departments of the company will be facilitated and improved.
3. Greater accuracy, less human errors
There usually is a lot of paperwork involved with the logistics industry. The employees in this industry have lots of documents they need to shuffle around and process and, since they are human, mistakes will occur, even with the most attentive ones.
Not only does EDI help reduce these manual processes and thus the possibility of human errors occurring when re-keying information, it also has the ability to recognize when data looks incorrect or misplaced in documents. So whatever you do, you will be quickly notified if something is amiss. Your company will consequently register a drop of transaction errors by more than 30%.
4. You will achieve sustainability
We live in a time when sustainability is more than just a fancy concept for nature activists.
Achieving lower environmental impact does matter and does not only serve the planet, but it can also serve your company either by being used us a trademark initiative or simply by saving money. In this case, saving money is a given since you will avoid adding costs of buying industrial quantities of paper, ink and storage items for it. Over time, your company’s budget will be more than thankful for choosing the EDI approach.
And let’s not forget that these are times in which great emphasis is placed on social responsibility. So your company might become well-regarded by more and more businesses which value this aspect in a brand.
As you can see, you can’t even begin to count the ways in which the logistics industry is benefited by EDI implementation. If you believe that your company and its logistics department could do with a makeover, give us a call and together we can work to boost your company’s value and efficiency.