It is a known fact that the electronic data interchange (EDI) has existed for over 30 years, but many companies have not yet taken advantage of its diverse benefits.

The presence or absence of appropriate EDI standards will be instrumental in determining your success or failure in electronic data interchange transactions. ANSI X12 is the most commonly accepted EDI standard in North America. EDIFACT has been adopted in rest of the other locations.

EDI compliance can be fulfilled by either outsourcing or buying the required components that typically include the following:

Communication software

VAN services

Mail-boxing

Translation and mapping software

Mapping labor

Software upgrades as needed

Ongoing testing with EDI partners

Specific electronic data interchange standards exist for a variety of unique documents that are required for EDI transactions. If you are in doubt, then it would be quite helpful if you can manage to work with an expert EDI outsourcing partner in order to ensure full compliance.

When you are ready to adopt EDI as a tool for operating your business more cost-effectively, here are three of the most viable business process candidates to consider first for EDI implementation:

Shipping and receiving

Invoicing and payment

Procurement

The most logical choice among these three will depend on your immediate requirements.