EDI is one of the most efficient methods of document exchange between two trading partners. However, there is a mistaken assumption that your business to be of a certain size or certain amount of turnover to benefit from the solution. You don’t need to EDI warehouse systems; even small businesses can benefit from the technology, here is why:
As an SMB, the first benefit you will notice is from the drop in transaction fees. Often, volume-based transaction fees can quickly add up, while with EDI, you pay flat transaction costs. Some estimates from firms show thousands of dollars in reductions.
You will also get access to potential trading partners that require or mandate EDI in all of their suppliers. When applying for tenders and contracts, you will be able to accept business from any company.
Even with a limited footprint, there is a lot of efficiencies you gain from EDI. The less human error results in fewer mistakes, lower chargebacks and order cancellations, and higher revenue. Also, your business will not require an increase in headcount to process additional transactions.
There will be a noticeable increase in transaction speeds since all documents move from one partner to another instantly over a secure digital communication system. What once took days or weeks will not take minutes.