The importance of integrating EDI with in-house systems

Written by Act Data Services, Inc. 1-800-ACT-DATA

According to several of the largest EDI providers in the market, only 50% of software packages purchased are integrated with in-house systems. How would this even work? Essentially, EDI, in this case, has been made into a very expensive communication device. An order is received through the EDI software. It is then printed and the data is entered into the in-house system from this hard copy. Following this route has many problems.

This is done purely for EDI compliance with another partner. Often, the larger trading partner is implementing EDI and requires all partners to do so in order to be eligible for orders.

This approach yields almost none of the benefits of EDI. There are none of the cost and operational savings. In addition, the possibility of human error still very much exists.

EDI has also added no value to the business. There are no opportunities to reduce inventory or apply cutting edge business processes. The organization remains unchanged and is vulnerable to market changes.

All of this can be avoided with an EDI outsource that is integrated with the in-house system. This integration can be costly, due to the fact that most in-house systems are unique. Which then requires a customized solution. However, going ahead with this will mean that the company sees the benefits of which a significant amount of money is already being spent.

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Act Data is an electronic data interchange service bureau that provides EDI solutions and logistics standards.