Big Performance in Small Business: EDI

Digital transformation offers many advantages for small businesses as well as those with large operations in the global market. It is the igniting force that the business needs to reach its growth targets quickly and set new goals. Integration solutions, which are analysed specifically for business needs and designed in the right way, greatly improve the operations of small businesses and make them efficient. We have summarized for you the improvement in the functioning of small businesses with Electronic Data Interchange (EDI) solution.

What is EDI?

EDI (Electronic Data Interchange) is a system that allows data to be exchanged electronically between businesses. Thanks to EDI, documents shared between businesses such as documents, invoices and orders are transferred electronically. This system replaces paper-based transactions, making business processes between businesses faster, more efficient and accurate. EDI also reduces human error and lowers costs as it enables automatic data exchange between businesses instead of manual data entry. Due to the misconception that EDI is often associated with larger operations, small businesses may not realize the importance of EDI for operations. However, savvy small businesses are making their operations more efficient and improving workforce performance with the systemization and automation brought about by digital data transfer, a boon of the modern age.

The Importance of Small Business EDI Solutions

EDI provides a system for exchanging documents digitally with other business counterparts, such as suppliers, customers, shippers or other supply chain contacts. In this way, businesses can transmit and receive incoming and outgoing documents, such as purchase orders, pre-shipment notices, inventory data and invoices, to and from other businesses in a standardized way.

Since the system is automated, there is no room for human error, and transaction codes are used for document transfer to ensure uniform, standardized exchange with trading partners. With this standardized transfer of business information, trading with trading partners in different languages, you can also connect your EDI to your ERP (or other systems) to automatically populate much of the information that usually needs to be rewritten. This means you can streamline your workflows to reach new levels of efficiency for your team.

The ability of digital data exchange to process documents or information at great speed, without the unnecessary workload of exchanging piles of documents, without the crises that can arise due to human error, is a gift of digital technologies. Thus, businesses have the opportunity to grow their business, both by increasing profits and by standing out from their competitors.

EDI Advantages for Small Businesses

There are many advantages for small businesses to use the EDI system. Thanks to EDI, the business process for target groups such as suppliers or buyers in small businesses is realized more fluently. Thanks to EDI, which makes significant contributions to reinforcing the environment of trust in commercial relations, businesses are more likely to strengthen their relations in international trade, relations with other interlocutors and all business processes with the support of standard data transfer.

Productivity

Thanks to EDI, transferring documents between businesses is much faster and more automated than manually, which speeds up business processes and increases productivity.

Employing Employees in Effective Jobs

It enables employees who are freed from their workload to diversify their work and thus produce a much more effective workforce. This can also increase the work motivation of the employee who is freed from boring routines that have become a burden.

Cost Savings

EDI reduces costs for businesses because it eliminates paper-based processes and manual data entry.

Accuracy

By replacing manual data entry with automated data exchange, EDI solutions reduce data errors and increase the accuracy of the work done, which means eliminating the risks of crisis in business communication.

Competitiveness

Because EDI allows businesses to transact quickly and accurately, it becomes possible for businesses to build a better relationship with their customers, giving small businesses a competitive advantage.

Sustainability

EDI reduces paper consumption and supports increased environmental sustainability with its eco-friendly application.

Growth

With EDI benefits, small businesses can gain opportunities to do business with larger businesses and grow and expand into other markets.

In a nutshell, EDI offers special advantages for small businesses, especially in terms of efficiency, speed, accuracy, cost savings, fast trade capability and competitive advantage. Small businesses may question the start-up costs of EDI system deployment and the technical support needed to learn the application. However, when they see systemization as a valuable digital investment in their workforce, they can achieve many times more than this cost in a short time with the advantages they gain. In this sense, EDI revitalizes trade as a modern commercial power that has an initial cost and provides earnings far above this cost in a short time and increases the business performance of small businesses exponentially.

MAP SME Free Consultancy Service

The free consultancy service, which is one of the leading privileges of MAP for medium and small-sized enterprises, supports the digitalization process of SMEs. With 25 years of sectoral experience, MAP supports small businesses with its special free consultancy support on EDI provision, EDI data security, superior consultancy support and qualified protocols. For more information: https://www.map.com.tr/en/contact/