As I mentioned in the previous articles, the logistics department is one of the departments that can benefit the most from implementing EDI. It is well known that EDI is a significant addition to any company, considering that it eliminates large quantities of paper used and the manual processes associated with transactions.
Through the implementation of EDI, your entire company will achieve better results in all departments, especially within the logistics department. Apart from the tangible benefits, your company will gain a competitive edge over your market competitors who still rely on paper to manage their business. In the following, we will analyze four benefits that EDI brings to your company, aiding in increased productivity:
1. Increased Efficiency
This is one of the most desirable objectives of any EDI implementation. Automation naturally enhances your company’s efficiency by eliminating manual processes and endless amounts of paperwork. Moreover, human error will be significantly reduced, as information will not require re-entry into the system.
And the benefits continue to emerge. You will also notice that order processing times will decrease along with production times, and you will have greater visibility within the supply chain. Once you choose to leverage EDI technology within the logistics department, you will never want to return to the old way of doing business. However, to fully maximize the benefits of EDI technology, everyone within the supply chain must join in, thereby increasing overall productivity.
2. Better and Faster Communication
Currently, speed is more important than ever. In the business world, the faster you reach your customers and meet their needs, the greater the chances of staying ahead of your competitors and gaining a larger market share. The logistics industry cannot lag behind in this regard because its business activities have always depended on punctuality. As a result of this reasoning, delivery times have improved over the years. Major retailers, including Amazon, deliver their products in less than two days.
3. Greater Accuracy, Fewer Human Errors
Typically, the logistics industry deals with a vast number of paper documents. Employees in this industry handle many documents, moving them from one place to another and processing them. Since they are human, errors are inevitable, even for those attentive to detail.
Not only does EDI help reduce these manual processes, thereby reducing the possibility of human errors when reentering information into the system, but it also has the ability to recognize when data is incorrect or misplaced within documents. So, no matter what you do, you will be notified immediately if something goes wrong. Your company will experience a decreasing number of errors in transaction processing – up to 30% less.
4. Achieving Sustainability
There will come a time when the concept of sustainability will be more than just an idea applicable to environmental activists.
It is very important to have a positive impact on the environment, not only to benefit the planet but also to help your company – using pro-environmental activities as a trademark or simply saving money. In this case, it is self-evident that you will save money, considering that you can avoid all the costs associated with using paper – buying it in large quantities, ink, and storage units. Over time, your company’s budget will thank you for choosing EDI.
Let’s not forget that we live in times where social responsibility is emphasized. Thus, your company can earn a gold star in the eyes of business partners who value this aspect in a brand.
As you can see, the ways in which the logistics industry benefits from the implementation of EDI are endless. If you believe that your company and its logistics department can benefit from a revitalization, give us a call, and we can work together to enhance their value and efficiency.