Electronic Data Interchange (EDI)

EDI is suitable for organisations of all sizes and across all industries that engage in frequent electronic data exchange with trading partners.

Here are some key reasons for considering EDI:

• Increased efficiency and productivity – EDI transactions are processed much faster than paper-based methods, reducing order-to-cash and procure-to-pay cycles.
• Reduced manual labour – Automation eliminates the need for manual data entry, freeing up staff for more strategic tasks. 
• Cost reduction – By eliminating paper-based documents, you can reduce operational expenses.
• Increased compliance and accuracy – EDI reduces errors caused by manual data input.  It also often includes encryption and other security measures to protect your sensitive data.
• Better supply chain visibility – EDI provides up-to-date information about orders, shipments, and inventory levels to enable more accurate demand forecasting.
• Enhanced customer satisfaction –  EDI can help you process orders more quickly and accurately, leading to happier customers and higher customer satisfaction.

EDI supports the processing of various business documents, including: 

• Purchase Orders (POs);
• Invoices;
• Debit/Credit notes;
• Advanced Shipping Notices (ASNs);
• Product Catalogs; and more.

The specific documents that can be processed may vary depending on the industry and your business needs. Speak to our specialist to learn more.

Each business is unique and implementing EDI involves complex considerations. To get tailored advice for your specific needs, we recommend speaking to our specialist.

General advice:

• Assess your business readiness by evaluating your current systems and processes – do you have the necessary software and infrastructure to handle EDI?
• Understand your trading partner's requirements – determine the EDI standards, documents and communications method they are using (e.g. X12, EDIFACT, AS2).
• Choose an EDI solution – you could build an in-house solution, purchase a dedicated EDI software or outsource to an EDI service provider (VAN) like Pacific Commerce.
• Integrate and test – map your systems (e.g. ERP, accounting) with your selected EDI solution and test to ensure smooth data flow with your trading partner before going live.

Outsourcing EDI management to a third-party Value-Added Network (VAN), such as Pacific Commerce, can offer significant advantages for your business. Some of them include:

• Expertise and scalability – VANs have in-depth expertise in EDI standards, protocols, and industry-specific requirements. They can handle varying transaction volumes, allowing your business to grow without overwhelming your IT resources.
• Security and reliability – VANs employ advanced security protocols to protect sensitive data and they maintain reliable network infrastructure, ensuring minimal disruptions to your EDI transactions.
• Compliance – VANs stay updated with industry regulations and standards, helping you maintain compliance. 
• Additional services –  Many VANs offer additional services like data mapping, translation, and EDI document management.

Each organisation's supply chain is unique and implementing EDI across a large supplier network involves complex considerations. To get tailored advice for your specific needs, we recommend speaking to our specialist.

General advice:

• Clearly outline the desired outcomes of EDI implementation, such as cost reduction, efficiency gains, or improved data accuracy.
• Prioritise suppliers based on transaction volume, strategic importance, and willingness to adopt EDI.
• Consider leveraging EDI VANs (such as Pacific Commerce) for expertise and support.
• Provide training to employees involved in EDI processes to ensure smooth operations.
• Adhere to industry-standard EDI formats and protocols to ensure compatibility.
• Review and optimise processes to maximise the benefits of EDI.

Pacific Commerce are ISO27001 (Information Security Management System - ISMS) certified. Strictly conforming to ISO27001 standards ensures our best-practice systems manage risks related to the security of data owned or handled by us and operates as a tool for risk management, cyber-resilience and operational excellence.