The benefits of implementing EDI: improving relationships with business partners

In another article I posted, ‘The Benefits of Implementing EDI,’ I talked about the benefits experienced by companies after implementing EDI, as revealed by industry-specific studies. One of the benefits was that EDI implementation enhances supply chain visibility.

This article will address another benefit that emerged as one of the most significant advantages of implementing EDI: improving relationships with business partners. This aspect was chosen by the majority of study respondents, emphasizing the overwhelming importance of stronger and better relationships with business partners.


Below are a few ways in which the implementation of EDI has proven to have a positive influence on business relationships:

      1. Improved Customer Relations

Now more than ever, it is highly possible for a customer to refuse to continue a partnership with you if you cannot exchange electronic documents.

It’s crucial to meet their business requirements, no matter what they may be, and to respond with a firm ‘yes’ whenever they ask if you can receive a purchase order via EDI or if you can attach barcodes to packages for further scanning to enhance productivity.

This ability will set you apart from your competitors, giving you the reputation of a company that is easy to work with, without complications. As a result, customers will be more inclined to return with more orders, which, of course, translates to higher revenue for you. Furthermore, considering that EDI still has a long way to go before it becomes a norm in the market, such an advantage would position you far ahead of other similar companies in your field.

       2. Improving Supplier Relationships

  • One of the most significant benefits of electronic document exchange is the increased visibility in the order process. Your usual metrics will now show even more, including information regarding the punctuality of shipping notices, order completions, and the frequency of delayed orders. With the help of this information, you can identify potential pain points and take immediate action to correct or eliminate them. In this way, you can initiate collaboration with your partners to find ways to enhance performance.
  • Another aspect that will please your suppliers due to the implementation of Electronic Data Interchange (EDI) is that they no longer need to invest time and resources to find out whether you have paid their invoices or not. This inquiry about the status of a payment used to be made through persistent phone calls and emails, but now it can be resolved by simply accessing the necessary information directly. Having these documents at your disposal when you need them will prevent potential confusion, anxiety, and the need for clarification.
  • Last but not least, we will introduce the possibility for companies to adopt the Evaluated Receipt Settlement (ERS) process, especially for suppliers with a high volume of transactions. The purchase order defines how much the customer should pay without the need for an invoice. Business partners can communicate with each other more efficiently and punctually, while also benefiting from other economic advantages. The only condition for this to happen is that the Shipping Notice and Purchase Order are sent and received through EDI.

As seen above, companies can significantly improve their relationships with their business partners, thus contributing to the prosperous development of their own business. Cultivating harmonious and trust-based relationships is just as important as the actual development of business processes. If you want to take this next step for your business, please contact us.