4 Ways To Determine If You Need An EDI Solution

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edi for distributorsYour sales people are selling to current customers and bringing in new customers as well. Eventually it happens. Someone lands the “big account”. It is a large retailer that has agreed to stock and carry some of your products on their shelves. There is one “catch” though. They are requiring something called EDI.

What is EDI? That is a question that we hear quite often.

EDI, or Electronic Data Interchange, is a means where electronic documents are transferred from one system to another. In this example, it would be the two-way transfer of electronic documents between your system and the large retailer’s system.

How do you know if you need, or should be considering EDI for your business? Here are four reasons that you might need EDI.

You Have a Large Retailer as a Customer

As previously mentioned, if you have a large retail customer, they are most likely requiring you to have EDI to do business with them. Sometimes they will give you a, sort of, grace period where you have some time before you have to implement an EDI solution.

You Ship To Distribution Centers

If you ship to distribution centers, they will, more often than not, require you to have a EDI system in place.

You have a Large Amount of Vendors

This one is more for your business. While your vendors may not require you to use EDI, different vendors may have different requirements on the documents submitted to them. By using EDI, you are ensuring that the correct forms are used.

You Are Handling Many Kinds of Documents

If you are sending, receiving, or just plain handling many documents such as PO’s, sales orders, invoices, and other documents, EDI can be helpful in terms of keeping order and saving time. By using EDI, you will not need to physically handle these documents, and you can be assured that the correct documents are being used.

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