Internet EDI vs. Totally-Built-in EDI?
Many organizations use vendor specific EDI web portals (e.g. Amazon Vendor Central) to communicate with their trading parties, often these organizations may have multiple vendor specific EDI portals to deal with on a daily basis. This requires a lot of labor and manual data entry on the organizations behalf, from downloading purchase orders and re-keying the data into the organizations back-end ERP/accounting software solution, to manually creating invoices and uploading same to the vendor specific EDI web portal.
As one client previously said “I know these portals are tedious and error prone, but I guess this is the price we have to pay to trade with the large vendors?” Wrong. Organizations do not have to solely communicate with their trading partners through their vendor specific EDI portals. Yes the option is there to use these EDI portals and often they are a good starting point for a young or seasonal operation. But as the organization grows, more trading partners are added and orders increase, the organization should seriously consider switching from a portal based EDI system to one that is fully integrated with their ERP or accounting software solution (e.g. NetSuite, Intacct, Sage, SAP, QuickBooks, etc.).
By fully integrating the organizations EDI needs with their business software application the organization can create greater efficiencies by having a seamless flow of all business documentation required. Fully integrated EDI solutions remove the need to re-key data, reduce labor costs, reduce human error and speed up the ‘order to payment’ cash cycle for the organization.