Reduce Your Order to Cash Cycle with EDI

The internet is getting faster, the trains are becoming super quicker, and the online transition is turning out to be lightning fast. But why your order to cash cycle is becoming lethargic and operates slower than a tortoise? Have ever asked this question to yourself, can the purchase order and invoice transaction between you and your clients or business partners can be faster?

Well, if you have not yet probed into this matter, then the time has come, you should find out the fastest way to quick order fulfillment methods. Hang on, do not stress your mind, here is a solution, and the solution is EDI. Wait! Does that sound like Greek and Latin to you? Let’s understand what EDI is, and how could it benefit you?

What is EDI?

EDI (Electronic Data Interchange) is an electronic process of data exchange from one computer to another computer. Precisely, you can say goodbye to paper-based business documents and migrate to EDI, and this is one of the best Order Fulfillment Solutions[S1] that can save money and time. Let’s look at the benefits of EDI in your business transaction.

Cost saving: By deploying EDI, you are going to eliminate expenditures that you might have spent on paper, print, filling and postage and data retrieval. In fact, you can substantially save up to 80% on the money that you might have spent in case of manual order processing. It will also help you to eradicate unreadable faxes, incorrect phone numbers, and lost orders.

Accuracy, emergency, and speed: by using EDI, you are likely to pace up your business cycle by more than 80%. Also, you do not have to wait for the postal service to exchange your transaction. In fact, through EDI, you are likely to deliver error-free data that could enhance your order to cash cycle by 30%. Moreover, believe it; the faster you transact, the quicker you improve. Therefore, it is advisable to find EDI companies that can help you in capitalizing on the digital technology and empower you to trade efficiently and profitably.

Efficiency and productivity: by eliminating paper-based tasks, you will let your employees concentrate on the meaningful job rather than getting entangled in a bundle of papers that are messy, error studded and disorganized.

You are also going enjoy lesser reworks, minimal stock outs, and fewer canceled orders. Also, the quick and error-free data transaction across the supply chain will minimize goof-ups as you can monitor the transaction in real-time that will result in better cash-flow. It will apparently shorten your processing and delivery time which would culminate in better inventory management.

Empower strategic planning: in this digital world, the whole humanity is longing for instant service. Moreover, it would not be difficult to find out the clients that are obsessive about on-time delivery and EDI could close this gap between the lethargic processes of postal service and your client’s fixation of quick delivery.

From the strategic standpoint, it will work miraculously because it will enable you to give real-time data on advanced orders so that you can arrange alternatives quickly. With a widespread penetration of digital technology, the corporate sector has become decentralized that means you can trade across the globe and carry out order fulfillment on real time; this would expedite not only revenue growth but also build a strong business relationship. It will also reduce lead time significantly; undoubtedly, this is the inevitably superb in any given circumstances as far as business is concerned.

Essentially, every business should find EDI solutions to expedite their growth in this highly competitive market where cost-cutting is the new modality of profit. Ask any businessman what profit is? He will assert the fact that money saved is money earned. Yes, this might sound like a clichéd statement, but all the universal facts are clichéd because you cannot change the truth into something else.

Eventually, business houses must adapt to a new ecosystem if they want to stay afloat in a micro-economic climate where every moment market dynamics, consumer behavior, and client expectations are changing rapidly, and if you think you need to migrate your order fulfillment to EDI then it would be a smart business move. Hang on! Do not just jump into it mindlessly.

In fact, you should conduct research; do your groundwork to finalize the service provider that you want to hire because in a cluttered market finding ineffective companies will be not a difficult task. Hence, make sure that you check the companies’ track record, their client list before you lock your selection. Ask for a demo, as a matter of fact; an authentic service provider will give a free demo so that you understand the implications, applications, and technicality of the system. Check out all the EDI solution they offer and choose the one that serves the best. Moreover, with proper homework, you will do just fine.

Born and raised in New Delhi, graduated from University of Delhi, Parisha Sharma is a brilliant professional with a flair of writing on areas like health, sports, technology and more.