Everything That You Need to Know about EDI Integration Platforms
The dramatic shift in the digital world has completely changed the way companies keep, analyze, and use customer data streams. In the majority of cases, organizations consolidate data present in multiple business documents. A lot of business managers and analysts and other respective business users are expected to take a closer look at the different records or data. In addition, organizations will need to run various data exchange processes across different partner ecosystems. There is a growing need for a specific system to drive the exchange of data within business ecosystems quickly, securely, and correctly.
EDI or electronic data interchange can enable organizations to support B2B communications. This way, they can engage and do business with multiple partner ecosystems.
This blog post illustrates the intricacies of B2B EDI integration and how these solutions can help companies drive value.
Significance of EDI Integration
Electronic Data Interchange (EDI) software solutions help companies exchange documents in a particular electronic format. EDI integration solutions provide multiple benefits. They help companies cut costs, speed up processing, minimize errors, and improve the quality of partner relationships.
Different Types of EDI Integration
EDI integration can be performed in three different ways:
- Direct Type of EDI Integration
A specific protocol is used to perform direct EDI integration. Different protocols such as FTP or AS2 are leveraged to create a connection from EDI business partners (whether they are customers, partners, and suppliers) with the use of internal ERP. This particular instance of direct integration is called an EDI ERP integration solution.
A lot of times companies rely on this approach to navigate through a wide range of partner connections, but this can make things complex and time-consuming.
2. Indirect Type of EDI Integration
An outside EDI value-added network (VAN) or a particular broker is used to perform indirect EDI integration. VAN acts as a middleman between the business partners and ERP. Messages are sent from ERP to VAN. Once the organization receives the message, the broker or VAN will transform and send it in a specified format.
3. Hybrid Type of EDI Integration
Many times organizations require a merger of direct and indirect EDI integration. For example, an organization might rely on a VAN to handle EDI transmissions or transactions. However, huge customers are connected using the indirect approach. Therefore, hybrid EDI integration solutions consolidate managed EDI services using in-house services.
The True Value of EDI Integration
The value of EDI transactions in performing B2B processes is huge. And they can begin to be the preferred way of exchanging documents as well as transactions across different business ecosystems.
Here are the advantages promised by EDI software solutions.
1. Better Visibility
When companies manage different business partner transactions from their particular ERP systems, they need to have visibility in real-time through messages from a variety of business partners rather than logging into the web portals.
2. Get Rid of Manual Processes from Multiple Supply Chain Ecosystems
B2B EDI integration software solutions automate data flow between ERP and EDI solutions of an organization. This enables them to reuse critical areas of business. It removes inaccurate data that is fueled by human error.
3. Improve Customer Delight and Deliver the Value Promised to Customers
With the help of an EDI integration software approach, companies can rely on message automation through advanced error checking and regulations to ensure the accuracy of messages and ensure that these companies don’t meet the deadline.
4. Increase Data Accuracy
Companies can use EDI integration software solutions to drive automation of EDI transmissions across business partner ecosystems. That can be consolidated using ingestion and transmission into ERP, which reduces the need to enter data manually.
As companies enter data on a manual basis, the risk of data thefts and breaches in organizations goes up. Through data automation, companies can get rid of errors or mistakes by turning organizations more EDI compliant.
How Can Self-service Data Integration Deliver Value
Self-service EDI integration helps companies stay ahead of the competition because it enables non-technical business users to implement connections and drive data exchange while IT becomes free to drive more high-value tasks. Ultimately, organizations can deliver the value promised to customers and accelerate revenue.