EDI has spread extensively with lowering of computing cost and increased spread of communication networks thus, making the usage of EDI feasible option. Various advantages derived due to EDI are
- EDI speeds the process and improves the accuracy of getting information into the user’s computer system. The traditional connections between businesses are telephone and mail. Both can be slow and require human intervention. EDI uses direct links to the computer system to minimize the transmission delay.
- Direct links also eliminate the need for transcribing the data into the computer. This reduces errors and saves time.
- EDI solves business problems, offers cost savings, and strategic benefits, and provides a competitive edge and improved market share.
- EDI helps organizations improve communications and increase competitiveness, efficiency, and customer service by cutting costs and maximizing productivity and profitability.
- EDI can lower costs by reducing inventory investments by more timely ordering. EDI can enable better business practices, such as “just in time” stocking. If point of sale data is sent directly to vendors, inventories can be monitored and orders automatically generated to minimize overstocking.