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EDI Hard Facts #3: EDI Reduces Order Receipt to Shipment by 4 Days!

Another compelling benefit cited in Supply Chain Insights’ new study “EDI: Workhorse of the Value Chain” addresses the time that businesses save when they send and receive business documents via EDI. They remove four days from order receipt to order shipment! “

When orders are managed B2B hands-free (no manual intervention) through EDI/XML, the time from order receipt to shipment is halved. In the survey, the average response changed from three days—if the order could be received and processed without manual intervention through hands-free EDI—to seven days to ship an order that needs manual manipulation.”

EDI Reduces Order Receipt to Shipment by 4 DaysIt’s pretty clear how EDI speeds up the ordering process. When you exchange documents via postal mail, it takes days to arrive, so it may take weeks to even discover that the mail was lost. Moreover, in some countries weekend delivery is non-existent or minimal.

In the United States Saturday delivery may be ended, which means businesses operating on weekends will have to wait even longer for important orders and other documents to arrive.

Courier services such as UPS and Federal Express are more reliable but costly. And even with faxes, documents don’t always arrive or can remain at the fax machine or on someone’s desk for some time before any action is taken.

In contrast, EDI transactions can be exchanged in minutes. Furthermore, there is significant time saved from the elimination of data re-keying into back-office systems (supplier’s order management system, buyer’s warehouse management and/or accounts payable systems) and the high error rate, which result in time-consuming corrective actions.

Saving four days can have a huge positive impact on your business because providing faster deliveries to your customers typically means greater customer satisfaction, which often leads to increased orders and you can also be paid sooner.

In my next blogs, I will continue to share additional statistics from Supply Chain Insights’ report with you. In the meantime, if you would like to read the entire report, you can get your copy here.

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