Why should you integrate EDI into your ERP system?
Both ERP (Enterprise resource planning) and EDI (Electronic Data Interchange) are tech solutions that help to increase business productivity. They are an integral part of modern business that facilitates communication and empowers operations.
Both approaches continue to grow and develop. At some stage, almost all businesses will have to implement ERP. And according to Fortune Business Insights, EDI is going to expand from $1.88 billion in 2022 to $4.04 billion by 2029. ERP is expected to grow to around $100.7 billion by 2025.
What about EDI in the supply chain? It helps to facilitate business-to-business communications and eliminate paper-based documents. It works with most trading documents:
- Delivery forecasts
- Purchase orders
- Delivery notes
- Invoices
- Advanced Ship Notices
- Acknowledgments, etc.
EDI can be implemented in different forms: EDI via VAN, Web EDI, API Integration, and Managed Services.
Enterprise resource planning (ERP) combines and centralizes multiple business processes:
- Accounting
- Procurement
- Project management
- Risk management
- Compliance
In agile and fast-moving business development, data integration is essential. Both ERP and EDI are data-centric systems, providing cross-communication. To create a single business data source, companies should integrate their EDI data into the company’s ERP system. As a result, systems can exchange both internal and external data using automated workflows.
Read about the benefits of EDI and ERP integration in our next post.
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