How EDI Software Helps Conduct Business Electronically

How EDI Software Helps Conduct Business Electronically-feature image
April 12, 2023 6 Min read

Data is one of the most fundamental elements of any organization. You use data to place orders, and for transactions, packaging instructions, notices and invoices. And of course you would need to share this data with various stakeholders. How? We generally use paper, mails or fax. But the problem with these modes are that there is no single platform where every information is recorded. It’s either on the mail, or printed, or stored online.

With the help of an EDI software, you can eliminate all these discrepancies within your organization.

What is EDI software?

EDI, which stands for Electronic Data Interchange, is a technology with stores data electronically on one single platform. It facilitates a paperless environment and abolishes the need of sharing documents via mailing or faxing.

Types of EDI Software

  • Point-to-point EDI
  • Web EDI
  • Mobile EDI
  • Outsourcing EDI

There are various types of EDI software available for different types of businesses. Let’s have a look at them.

  1. Point- to- point EDI

A point-to-point EDI establishes only one connection between two points, or partners. In this way, it connects only one business partner at a time. It is majorly used by large customers who have quite a huge number of daily transactions. EDI software helps them by giving a greater control.

  1. Web EDI

A standard internet browser is used when using a web EDI. To communicate or exchange information with clients or other businesses, your organization can use different types of online forms which are pocket-friendly. Thanks to the cost-effectiveness of web EDI, small business can afford it for their day-to-day communications.

  1. Mobile EDI

With mobile EDI, you can download software applications specially meant to share data from different app stores. Mobile EDI is gradually making its mark in the market with the advent of smartphones. Earlier, due to primitive technology and security related issues its usage in businesses was limited. But with growing technology, you can expect more and more organizations using mobile EDI for sharing information with one another.

  1. Outsourcing EDI

EDI Software Image

Outsourcing EDI, also known as B2B outsourcing, is another option for many organizations. In this method, a business can use external resources to manage their EDI every day. This can also be integrated with your existing ERP solution. You can opt for an outsourcing EDI if your organization doesn’t want to utilize its internal resources to do the same.

What are the benefits of using an EDI software?

  • Streamlined Processes
  • Improved Flow of Information
  • Saves Time & Improves Speed
  • Better Accuracy
  • Security

The benefits of using an EDI software solutions are numerous. Starting with streamlining processes, to lowering overall costs, it will definitely help you conduct your business electronically. Let’s have a look at few of the benefits of an EDI software:

  • Streamlined Processes

Order cycle durations can go up to 61% faster if you use an EDI software. The time taken in order processing and delivering is reduced significantly. This eventually reduces the overall costs, thanks to automation. With automation, you will get more time to focus on strategic goals and objectives which would lead to an increase in productivity.

  • Improved Flow of Information

When data is shared in real time, there are fewer manual errors, data is not lost and paperwork is minimized. The smooth information flow would help make the relationship between business partners stronger. It increases the gross cash flow as well.

  • Lower Costs

With the help of an EDI software, you can ration your monthly budget, too. Expenses on resources like paper, document printing, storage and more can be controlled. You can now be extra sure about zero wastage caused by reworking of tasks with errors. This also means stronger relationships with customers, as negotiations, investigations and returns will proceed smoothly.

  • Saves Time and Improves Speed

The time taken to communicate and share data to other parties becomes much faster when you use an EDI software for small business. Incoming and outgoing orders are generated automatically which means that it does not need time from employees. Delays which occur due to different time zones can be avoided.

The transactional time decreases because physical paperwork is not involved. You will also receive a better cash flow and reduced size of inventories inside your company.

  • Better Accuracy

With EDI software, you can eliminate the chance of manual errors. Information exchanged between two entities become more reliable. The chances of duplicating data also decreases.

EDI software when integrated with an ERP software, will give you an unparalleled system that can transmit data at a very high pace, and ensures that the data shared is accurate. This results in an improved relationship with partners, correction of inaccurate product prices, and minimization of additional costs.

  • Security

Best EDI Software Image

EDI software will help you locate the data when you need it. Invoices, reports and order receipts can be automatically generated, making your processes a lot easier. This software is highly secure, as only authorized people can access this software. It would also send notifications upon receiving documents from different parties.

This helps in bringing transparency to partner relationships. When the ERP system is integrated with EDI mapping software, you can chart-out the processes which are scheduled to happen in the later stages.

Guide to Buy the Best EDI Software


A business grows with time. If you are a small-to-medium business, it is a wise decision to invest in an EDI software in the early stage of the business. This is because as you grow, the amount of data within your system increases. You would need a proper system to manage that kind of a data.

However, it is not a good idea to shift your entire data on another platform in the middle of the product lifecycle. Hence, it is necessary to adapt a system which is flexible enough to change with your business.


The EDI software that you are selecting, should be able to take any format of electronic data and convert it to a standard format. It should also be able to reverse it when sending the information to respective businesses. With EDI software, you should be able to communicate to any business when required.


When you use multiple modes to send data, security is hampered in one way or the other. Using mail or fax might result in losing or misplacing your data as well. Using an EDI software will prevent your data falling into the wrong hands. Selecting an EDI software which provides optimum security would be the best choice.


EDI software can help you take control of your company’s data. You can establish a system that is scalable, secure and cost-effective. An organization that uses an EDI software, or is looking to use an EDI software, is definitely on the right path towards growing its business in the near future.

Written by Riya Basu

Riya Basu, a core member of the content team at, has previously worked with several brands related to lifestyle, travel, education and f&b. However, technical content writing is currently her niche with more than 2 years of experience in writing about business software and hardware. She is... Read more

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