Five Reasons for Electronic Document Interchange Implementation
By Ulf Schneider
So, are you wondering whether to convert to electronic document interchange (EDI)? Here are five reasons why you should give it some serious thought.
Decreased expense for primary documents processing
EDI eliminates a number of tasks, including processing documents, envelopes, sorting out documents, manually entering data into the accounting system and archiving paper documents. Personal signatures, stamps and handling stacks of paper as well as couriers are no longer necessary. Various studies indicate that this savings can reach up to 70% when compared to paper documents.
Increased efficiency and effectiveness
EDI implementation significantly increases overall efficiency and effectiveness, bringing about such benefits as reduced time spent on document processing, fewer errors, fast access to any document, quick and guaranteed document delivery, less space required for documents storage and less waste.
Improved working capital management
With the increased efficiency and effectiveness that EDI affords, there is also a positive effect on a company’s working capital management. EDI enables a company to have a more accurate real-time picture over its accounts receivable and payable and in turn improves its ability to make informed decisions about the use of financial resources to meet its goals.
By eliminating a number of tasks through EDI, it gives the responsible employee an opportunity to focus on more important, value-added tasks such as improving relationships with customers and suppliers. This in turn translates into a competitive advantage for the company enabling it to improve and expand business relationships and expand its market presence.
Considering the environmental impact, it is estimated that every year in Europe alone 30 billion invoices are sent out. This requires cutting 12 million trees and producing 3 million tons of CO2 emission. Thus, the introduction of EDI makes a significant contribution towards saving our planet.
It’s easy to see how EDI can help your business be more efficient.
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