With each day that passes there are more businesses which are recognizing the great benefits which an EDI system can give them. EDI, or electronic dat interchange, systems, is used for all B2B communications and it has formed a core part of the way in which so many businesses communicate. This has revolutionize so many businesses and brought increased speed, accuracy and cost saving to those businesses which are using it. This however is just the tip of the iceberg when it comes to what automated EDI systems are able to do, through the use of EDI integration software.
This will be the next step for many businesses to take, a fully or partial automation of their EDI systems.
Main Types of EDI Integration
In total there are 3 types of EDI integration which businesses are seeking to use, let’s take a look at what each is and how it can benefit the business.
- Direct EDI Integration
The direct EDI integration works using a direct connection between your ERP and your business contacts, through the internet. This can give you direct contact with your clients, with logistics companies and even your suppliers too. Generally speaking direct integration is perfect for those businesses which are looking at managing a huge amount of connections involving vast sums of data.
- Indirect EDI Integration
An indirect EDI integration involves the sharing of information which first goes through a broker, before reaching your clients or your suppliers. The message will be produced and then from your business’ ERP it will be sent to the broker, which will then dissect the message and share it amongst everyone who you wish to receive it. The broker will also be able to reformat the message based on how your clients have chosen to receive it.
- Hybrid EDI Integration
As you can probably assume, the hybrid variety of EDI integration is one which is capable of using both indirect and direct processes. There are some business which do like to have both options here, so that they are able to send messages both directly and indirectly. Another version of the hybrid system which we have seen is one which also builds in non-EDI integration. Not all customers are using EDI systems and so there needs to be scope for them. This will usually involve the use of indirect EDI integration, whereby the broker will be able to utilize other messaging systems such as email to speak with those customers or business partners.
Ultimately the more advanced that this tech becomes, and the better it gets at electronically sending instant information between businesses, the more success those companies using it can find. These 3 means of EDI integration have enabled so many businesses to fine tune the way in which it communicates and that has lead to stronger relationships and ultimately more profits thanks to increased revenue and cost savings.
Any questions, feel free to get in touch in the comments section.