What are EDI systems?

EDI systems are the future of business to business communication.  They remove paper-based communication methods by electrically automating and improving efficiency. There are lots of different EDI systems each with their own benefits.

This blog post will bring you up to speed and make you aware of the different type of EDI systems.

Different types of EDI systems

WEB EDI – WEB EDI is often the best choice for little startup companies and medium-sized business, this system is often done over forms to transfer information between companies.

AS2 EDI – AS2 is a direct connection to an EDI, it provides safety and security by encrypting the transferred data.

VAN EDI – VANs (Value Added Networks) use private networks to transfer the EDI between businesses. This system utilised a “mailbox” system that lets business owners send and receive the EDI.

PTP EDI – PTP (point to point) EDI use a single connecting to send EDI between partners. They connect individually to each other and speak directly instead of relying on a relay to keep EDI flowing.

EDI systems

Why Choose an EDI system?

First of all the main and most beneficial reason, cost. A business that uses an EDI system can save money with every transaction. This system will also verify every transaction making sure there are no more lost or illegitimate transactions.

Instant feedback from the EDI systems.  With EDI, say goodbye to employees twiddling thumbs waiting around for another company to confirm invoices. The processing speed is fast and doesn’t require human intervention, as a result allowing companies to get more work done quicker.

No more paper documents between businesses. Although the most obvious reason, it’s still a huge perk to using EDI. The complete removal of physical documents means that communication is quicker and more secure.

 

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