Draco  3PL Packaging | Fulfillment | Distribution | Indianapolis

EDI: Technology that Streamlines Business Transaction

Business has always been about paperwork. Stapling, printing, stamping, and signing were all parts of the purchasing process. Nowadays, this process has been almost completely digitalized and automatized. Thus eliminating the many errors that would occur from the handing off and processing of purchase orders and returns. What caused this change? EDI, short for electronic data interchange.

EDI is a technology that most of the business world uses for their business transactions including shipping, distributing, purchasing, and the dreaded return. Beginning in the 1960’s, at the start of the computer age, EDI was simply small data transfers from computer to computer. Major improvements occurred throughout the next twenty years as file sizes increased and the railroad industry gave major funding for research and innovation. By the end of the century, thanks to the development of the Internet, automotive, air, and major corporations were now all on board for using EDI to streamline their purchasing and shipping information.

In the past, before EDI, businesses had to wait days upon days for confirmation of their orders and shipments. It was also placed upon the business’s responsibility to manage and track their shipments, noticing any mistakes hopefully before it was too late. Today, the company client can track their orders through a 3PL provider, who retains all of the information. Businesses and service providers have access to all of this information in real-time through EDI portals. Now orders, returns and shipments are received and available for view within moments. Error frequency has also been almost completely eliminated because of everything being electronic, automatic, transferred through system standards.

So what does this mean for you as a company and potential client? It’s simple. Using a service that allows your data to be processed through EDI will streamline your business. Fewer mistakes, faster transactions, and ease of mind will all happen because everything goes as plan. You can stop constantly tracking and checking up on orders, making sure you have all the right paperwork, and wasting precious time. Thus allowing you to go back to what you do best: building your business.

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