Electronic Data Interface, popularly called EDI, is gaining increasing foothold and attention in the world of shipping and logistics. EDI advances a business firm’s activities from its traditional, disorderly and time-consuming ways of working to a streamlined and efficient way that reduces the chances of errors, enhancing the speed with which objectives are met. In the fast transforming world of shipping logistics, it is imperative that your business employs the right software tools to manage the logistics and distribution related activities efficiently, achieving higher productivity and customer satisfaction. EDI generates and shares invoices, shipping information and payment details electronically among stakeholders, eliminating the need to re-enter parallel information at any stage of the entire business cycle.

EDI empowers the electronic transmission of business information between B2B trading partners by employing a standardized format of communication. This technology has been in existence for 5 decades and was developed by the United States transportation sector to regulate business transactions between merchants. EDI gets ride of paper-based communication, requires no human intervention, and facilitates the transfer of documents such as purchase orders, acknowledgements, amendments, bills of lading, customs documentation, shipping notifications, quote requisitions, catalogues, inventory and payment details. Integrating an EDI system saves time and resources across companies throughout the supply chain. The paperless transactions, importantly, exhibit the social obligations and environmental concerns prevalent among business leaders.

What are the far-reaching benefits of EDI in supply chain management?

Barrier-free communication between trading partners

EDI restructures and simplifies business transactions and communication between trading partners. This brings about a wider customer footprint, fetching additional sales revenue, profitability, and closer customer relationships. Sales cycles conclude speedily because orders are taken, confirmed and executed rapidly. Customers gain increased trust in your ability to provide first-class service.

Better data accuracy

Orders transmitted through an EDI system reduces risks associated with wrong data entry and improper handling of documents. Electronic exchange of information through EDI brings in accuracy and quick roundabouts.

Practical cost and time savings

When your business elevates to an EDI system, you save costs involved in printing, photocopying, postage and document filing. The elimination of such traditionally performed tasks brings remarkable savings in time and money.

Optimal inventory handling

EDI has earned an enviable reputation by facilitating businesses to maintain the optimum inventory to meet current demands, while also keep sufficient stock levels for future needs. Access to real-time updates helps businesses to use such information to set up alerts to support optimal resource allocation and maintain the correct balance in inventory. EDI automates exchange of information based on defined parameters to process shipments and performs tasks such as invoicing and accounts receivables by using the originally stored information available in the system.

Essential features in proven EDI systems comprise:

  • Support multiple EDI documents comprising shipping notices, purchase orders, invoices, financial reports, and catalogs.
  • Custom-built validations.
  • Support communication procedures such as FTP, Direct Web uploads, web-based uploads.
  • Automated validation and alert facility to warrant clean data from depots.
  • Compatibility with EDI ANSI 322, ANSI X12(US), CSV, COARRI, CODECO & ISO v9897/9735 EDIFACT standards.
  • Ability to query records with container numbers or transmission ref numbers.
  • Integrate new trading partners swiftly.
  • Easy scalability alongside the growing needs of a company.

EDI has boosted the efficiency of processes, such as electronic procurement, automated receiving, and electronic billing & payments. EDI reduces your company’s administrative expenses, improves the quality of data, accelerates business cycles, and brings strategic business gains. EDI augments supply chain management by reducing lead times, cuts down the expenses involved in document processing, and overcomes the chances of data entry errors during the interchange of important data amongst trading partners in the supply chain.

iInterchange Systems is a preferred software solutions provider for container depots and ocean carriers.

 idex24 is a value-added EDI solution from iInterchange Systems that empowers ocean carriers and asset owners to process business data from global depots, factories, ports and terminals in an integrated manner. The company’s solutions are backed by a sound and devoted after-sales-support mechanism. Why not begin a conversation on implementing a robust EDI solution for your company that will keep the competition at bay and help maintain your company’s success journey?


Facts and figures in the blog are obtained from dependable sources on the internet.