Benefits of E.D.I

BENEFITS :

•          TIME DELAYS

Delays are caused primarily by two factors. Paper documents may take days to transport from one location to another. Manual processing delays are caused by the need to key, file, retrieve, and compare data.

•          ERRORS

Information is keyed multiple times and documents are transported, stored, and retrieved by people, non-EDI systems tend to be error prone.

•          UNCERTAINTY

Uncertainty exists in two areas .First, paper transportation and other manual processing delays mean that the time the document is received is uncertain. Second, , the sender does not even know whether the transaction has been received at all nor whether the receiver agrees with what was sent in the transaction.

•       LABOUR COSTS

While automated equipment can help with some of these processes, most managers will agree that labor costs for document processing represents a significant proportion of their overhead. In general, labor-based processes are much more expensive than non-labor-intensive operations involving computers and telecommunications.

references:
# www.edibasics.co.uk/benefits-of-edi