Your business partner has contacted you about finally setting up an EDI interface? Now the question is: “What does the abbreviation EDI actually mean?” We explain to you what an EDI interface is all about, why this interface is so important in the B2B area and how you can set up an EDI very easily.
The abbreviation EDI stands for Electronic Data Interchange and brings many improvements for companies. Paper documents can be sent electronically via EDI. This saves you long mail delivery times and manual processing of individual documents. The digital documents are transferred to your business partners in a freely selectable format.
Advantages of an EDI connection
An EDI interface is characterized by the standardized structure of the documents. The structure is independent of the software used, so that companies in B2B business can exchange data with each other even though they use fundamentally different ERP and management software. The interface thus enables truly digital communication between companies without necessarily requiring the same software. EDI stands for a data processing concept that functions independently of conventional communication protocols or transmission media. This makes the exchange of information considerably easier and much faster.
The first EDI standard was introduced more than 40 years ago. However, a uniform format is still lacking. This has so far somewhat inhibited the processing of EDI connections. Here is where io-market’s support comes in for its customers. If sender and receiver do not use the same format, io-market acts as some kind of “translator”. We look at the format requested by the sender and receiver and map the corresponding data. This means that receiver and transmitter do not have to agree on a format beforehand and still benefit from the enormous advantages of an electronic interface.
Automatic processing of data records
An EDI connection makes it possible to send company data of orders, delivery notes, invoices and product catalogues directly and securely to business partners as structured files. There, the data can be transferred directly from the ERP system so that manual processing of the invoice or order is no longer necessary. In simple terms, an EDI interface replaces the previous communication channels via letter, fax or e-mail. Although the file is also transmitted electronically in an e-mail, the ERP systems cannot independently recognize and read the PDF files. In this article we explain why an e-mail invoice is not an electronic invoice (including e-bill).
The biggest advantage of EDI is the transmission from computer to computer, no manual work is required. Thus, errors of carelessness or loss of documents are a thing of the past. Companies can get rid of the mountains of paper and save up to 75% of the processing time. In a previous article, we took the time advantage digital invoicing a closer look.
Please call us directly to learn all the advantages of an EDI interface in a non-binding conversation.