EDI stands for Electronic Data Interchange. It refers to computer to computer communication, generally in relation to online purchases and the administration related to that. Indeed, cloud EDI is most commonly used in ecommerce. When businesses need to exchange business documents or data between their partners, they can do so by using EDI. This makes it much quicker and also much easier to manipulate the data as needed.

Why You Need Cloud EDI

In very simple terms, EDI makes businesses more efficient. It enables information and data exchange, but also enables businesses to respond quickly, to have rapid transactions, to ensure service delivery is efficient, to make sure processing is as quick as possible, and to prevent human error.

There are many benefits and advantages to using EDI. For instance, it significantly reduces the amount of time spent on administrative tasks, while at the same time streamlining business processes and information flow. Additionally, it can make service quicker, thereby raising productivity and, ultimately profits. And it does all of this simply by making information exchanges more efficient – and more affordable.

In order to really get the most out of EDI, which is clearly the best way for businesses to trade, buy, and sell, it is important for different trading partners to be able to get to a point of compliance. In order to experience the benefits of EDI, there are three main processes to go through before true benefits can be achieved. Those are:

  1. The mapping stage, where messages are transformed.
  2. The translation stage, where the standard EDI format is accepted for both receiving and sending.
  3. The communications protocol that everybody signs up to.

All three of these stages can be implemented with ease through the software provided with is now, more often than not, cloud-based. Indeed, it can be outsourced in full, which makes it even more efficient. There are lots of different EDI providers out there to consider, each with their own benefits.

How to Choose an EDI Provider

Because cloud EDI is now becoming so popular, there are also many developers who offer it as a program. It is very important, therefore, that you spend some time comparing what you get with each provider. While it may be tempting to simply opt for the biggest name just because it rings a bell, or for the cheapest deal because we all have to watch our spending, you do have to make sure that the system is fit for purpose.

According to research, around 90% of all Fortune 1000 companies now use some sort of EDI. They do not all use the same one. And in that lies the greatest comparison point of all: how good is your system at communicating with other systems? While an in-house EDI is already beneficial, it is even better if you can communicate with external partners as well. Do also look at the different features that the programs offered before you start to look at price. Value for money is more important than low price.