Electronic data interchange refers to a unique platform companies operate to exchange business files between their trading partners in a standardized format. This software platform is compatible enough to integrate into the existing networks of the business without any problems. As a result, the owners of these companies do not need to acquire additional hardware components. They just need to decide upon which communication protocol to use in consultation with their trading partners. They can opt for a value-added network (VAN), secure file transfer protocol (SFTP), Applicability Statement 2, or a Small Mail Transfer Protocol (SMTP) modem. Taking this step ensures the smooth flow of information between the businesses in the course of conducting their commercial activities.
Web EDI – How do these platforms work to streamline business operations?
Many business owners may be wondering how most web-based electronic data interchange platforms work. Industry experts explain that most of these owners store their vital business information in an enterprise resource planning (ERP) system. They take this step to ensure this data does fall into the wrong hands. This data generally relates to purchases, sales, production, customer details, inventory, pricing, invoicing, and shipping. When transacting deals with their trading partners, the owners need to prepare certain business documents. By integrating a web EDI platform into their ERP system, the employees of these owners can prepare these documents instantly. This is because they get all the relevant information from the ERP system.
How do business owners set up and use an electronic data interchange platform?
Employees can transmit documents securely to trading partners’ networks on this platform. For this, they just need to use the relevant mapping and translation software applications which the web EDI platform contains. Business owners can install and operate the electronic data interchange platform by taking the following four steps:
- Purchase a suitable web-based electronic data software system in consultation with their trading partners. It should contain all the relevant document mapping applications and translators. Owners will need them to convert the data in their ERP system into the proper format;
- Owners need to discuss ways to exchange various business documents using the EDI platform with their trading partners. In this phase all the parties need to decide which communication protocol best suits their specific needs;
- After setting up the electronic data interchange platform with the help of professionals, the owners need to conduct the test- runs. They then need to transmit dummy documents with their trading partners to ensure the system is working flawlessly; and
- If the results of the test -run are satisfactory, the owners can start using the EDI platform for their businesses.
Operating a suitable web EDI platform can enable business owners to streamline their commercial operations with their trading partners. When purchasing this system, the parties need to ensure its applications can convert their data into proper form. Moreover, they decide on which communication protocol to use and conduct the relevant test-runs. Taking these steps helps these parties ensure the platform operates flawlessly. In the process, they can reduce cost, boost productivity, and enhance the profits of their businesses with success!