1. What is Electronic Data Interchange ? (EDI)
Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard electronic business documents, such as purchase orders and invoices, between two organisations. The sending company creates an electronic document and the receiving company processes it –without the need for human intervention. There are two key elements in basic EDI.
First, electronic documents replace paper-based ones. Second, the exchange of documents takes place in a standardized format. Using these two basic concepts. Any business can implement EDI and take advantage of its speed, accuracy, efficiency and cost savings.
Industry research shows that eliminating the use of paper documents and replacing them with EDI messages can make significant cost savings.
Current practice in firms
Businesses that rely on paper-based processes have to cover the cost of printing forms, postage, administrative, overhead such as “ling and retrieval, data entry and the manual validation of information.
There is also the added headache of dealing with purchase order or payment disputes and invoice reconciliation due to errors such as illegible handwriting and manual data entry.
According to a UK Study in the Retail Grocery in 2011,EDI can save businesses at least £14 per order, £8.50 per invoice and £12 per order using a dispatch advice. The Cutting the use of paper through EDI can help companies with their sustainability initiatives and at the same time cut costs.
a.Electronic Data Interchange (EDI) Solutions
All messages associated to large invoice senders and receivers are implemented in SaphetyDoc allowing for creating reply messages directly from the SaphetyDoc platform. Quickly and with no investment costs, a supplier may initiate an electronic documents exchange through SaphetyDoc.
b. Main Features:
• Receive Purchase Orders, Notifications, and other electronic business documents, and send Electronic invoices directly integrated in the ERP
• Save Electronic Invoices (and other accounting documents) with full legal (for 10 years) and fiscal (for tax inspections) value
• Back office for consultation through on-line access by company users, for all Electronic Invoices
• Business documents digitally signed, mapped, securely transmitted and archived, thus eliminating paper documents.
c. Main Benefits:
• Reduction of order processing costs
• Reduction of invoice sending costs
• Reduction of payment terms for invoices issued
• Online validation of invoice legal requirements