9 Feb 2021


Understanding the Need of EDI System for a Company - Cogentialit

Understanding the Need of EDI System for a Company - Cogentialit

Understanding the need of EDI system for a company

Electronic document flow allows for a significant reduction in the number of paper documents, which translates, among others, into to significantly improve communication between contractors. So, if you’re looking for EDI service provides that can deliver you a hassle-free EDI integration in your company then Cogential IT is the name that you can trust. Here in this article, we have jotted down some important aspects of EDI system before you can take the ultimate decision.

Features of EDI systems

The most characteristic features of the company's electronic document flow system include:
● applying a specific structure and format to sending messages and documents,

● direct communication of IT systems,

● scalability, thanks to which increasing the volume of transmitted information does not mean the need to invest in infrastructure development,

● security, resulting from making the transmitted information available only to authorized users.

What do you gain from the electronic document exchange system?

The most important advantages of the electronic document circulation system include acceleration of the document processing process, reduction of the risk of errors related to manual data entry, elimination of duplicate data and reduction of the costs of sending, storing and managing documents. Once you opt for the EDI services from Cogential IT, the professional at our work place will assure that nothing goes wrong from there onwards.

How to implement the EDI system and what is its cost?

The implementation of an electronic document flow system most often involves the need to integrate communication between the IT systems of entities willing to use this solution, although EDI systems are also available in the WEB version, which does not require integration with IT systems. To avoid potential problems, it is best to use one of the specialized solutions that are available on the market. This is where Cogential IT can provide you the support you’re looking for. We are known for our cutting edge technologies and how we competitively get out the best solution for your business.

What are the most popular electronic document formats?

Currently, the most popular in Poland are XML and UN / EDIFACT (United Nations / Electronic Data Interchange for Administration, Commerce and Transport) formats. Documents in the UN / EDIFACT format are universal, which makes them applicable in all industries and countries. However, it is worth remembering that a properly selected EDI operator should have no problem with adjusting the formats or their translation.

EDI standards

In order to improve cooperation between entities using electronic data exchange, standards for the information exchange format have been developed, which are commonly used in electronic document circulation systems. The existence of standards in this respect means that each entity creates and processes documents in its own internal format, from which the documents are converted into the format applicable to the contractor at the time of receipt by the recipient's IT system.

Is EDI a good way to send e-invoices?

Yes, EDI systems allow for efficient and error-free sending of e-invoices between trading partners. Importantly, if the electronic invoice flow is properly configured, the time from placing an order to issuing an invoice may be very short - even several or several dozen seconds.

Is it possible to resign from paper invoices thanks to the EDI system?

Yes, a properly implemented EDI system allows you to resign from issuing paper invoices, even in a situation where the recipient does not store invoices in electronic form. In this case, it is possible, for example, to issue an invoice on the portal from which the recipient can download the document after logging in, send the recipient a link leading directly to the issued document or send an invoice by e-mail in a PDF file. In each of these cases, the recipient may print the received invoice and store it in paper form.

Does the electronic document exchange system have any disadvantages?

Each solution carries some risks, in the case of EDI there are not many of them, but it may be a loss of data transferred if there are technical problems during the transfer, so it is worth choosing an EDI operator. The implementation of the EDI system and cooperation with its operator means entrusting this company with data that are extremely important from the business perspective. Therefore, trust alone is not enough - you should always make sure whether and how often the operator backs up data, how the servers are secured and who has access to them. It is worth emphasizing in this context that messages sent via the EDI platform are not lost, and the sender and recipient always know whether the information has been received by the other party.

Accelerate and increase the accuracy of information flow

By eliminating the need for multiple manual entries of the same data, the risk of providing the counterparty with incorrect information is significantly reduced. This in turn translates into faster order processing and reduction of their processing time. EDI systems can also verify the correctness of the entered data, and thanks to the improvement of cash flow resulting from the improvement of document flow, they reduce the length of the order fulfillment and settlement cycle.

Stop hesitating and get the best in the market to solve all your EDI related issues. We can be the one stop solution that will save both your time and money. Fast and reliable edi services provider is now a call away. Choose Cogential IT now and eliminate all the loss by our cloud based EDI for your business.

What is an EDI system?
: An Electronic Data Interchange (EDI) system facilitates the electronic exchange of business documents between trading partners in a standardized format, replacing traditional paper-based methods with digital transactions.

Why do companies need an EDI system?
Aanswer: Companies need an EDI system to streamline communication, improve efficiency, reduce errors, and enhance collaboration with trading partners, ultimately leading to cost savings and increased competitiveness in the marketplace.

How does an EDI system benefit businesses?
Aanswer: An EDI system benefits businesses by accelerating order processing, improving order accuracy, enhancing supply chain visibility, reducing manual data entry, and ensuring compliance with industry standards and regulations, leading to improved operational efficiency and customer satisfaction.

Also read :  Streamlining Data Processing with Shipping EDI Solutions

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