What are the benefits of electronic data interchange process?

Advantages of Electronic Data Interchange:

a. EDI replaces paper transactions along with electronic transactions therefore this saves times and speeds up transactions.

b. This gives a legal record of business communications

c. Value-added networks (VANs) were needed in the past but EDI (Electronic Data Interchange) users are now capable to transmit their data encrypted over the Internet at the far lower Internet connection rates through new EDIINT  standards for email (AS1), HTTP/HTTPS (AS2) as well as ftp (AS3).

d. Use of EDI decreases cost. These comprise the cost of stationery and postage etc.

e. Precise invoicing can be done using EDI. Electronic Data Interchange invoices can be automatically matched against the original order and cleared for payment without any type of queries which generally arise while paper invoices are matched along with orders.

f. Quick response is achieved along with EDI. For illustration ifa customer is to be informed that an exact product is not available and when this is one using paper orders that takes lot of time but along with Electronic Data Interchange a customer can be informed straight away than he may go for the other option. Thus, quick response can simply be obtained from the customer using EDI.