More and more companies these days depend on Electronic Data Interchange technology to streamline their communications with other “trading partners.” It’s interesting to think, for example, where the company would be if not for Walmart EDI.
Despite its popularity, though, many don’t know how exactly an EDI service works. Continue reading for a short explanation.
There are three major steps to successful EDI. It starts with what is known as mapping. This process involves taking an EDI document and transforming it into another format. Mapping can also involve the exact opposite transformation.
Next comes translation. This process takes place right before or after the information is transferred. It is essentially preparing information to be sent or accepting it from antoher source.
Lastly, there is communications. This refers to the communication of the actual EDI transaction that just took place. It can happen directly or through an external third-party.
In many ways EDI replaces traditional methods of communication that used paper. However, it is also very similar. The difference, however, is more than just efficiency.
EDI can guarantee a much higher level of security thanks in large part to encryption capabilities. Because you’re not using paper and the labor that comes with preparation and delivery, it is also for less expensive than traditional methods.
If your company exchanges information with other businesses on a regular basis, they should explore EDI as a possible method that can help in a number of ways.