Understanding the stakes and benefits of EDI

A PDF is designed to be read by a person. When a customer emails a PDF, the recipient has to open the file, read the data and key it manually into their business software.

EDI, by contrast, transmits a text file structured according to a standard syntax (such as EDIFACT or XML), which is checked for compliance. The file can also embed a PDF that the partner can read. It travels from server to server and is read automatically by the information system, with no human intervention.

EDI, like e-invoicing, is suitable for any type of company, whatever its size or sector. Net Solutions has customers in many sectors: services, healthcare, agri-food and manufacturing.

• Lower average cost per document: the average cost of processing a document falls from a few euros to a few cents with EDI.
• No more incidental costs: direct savings on consumables (paper, ink), postage and physical storage space.
• Lower overall processing cost: by automating data entry and checks, EDI reduces the administrative workload involved in processing documents. The organisation becomes more efficient, and teams freed from repetitive tasks can focus on higher-value work.
• Fewer penalties and disputes: fewer invoicing or delivery errors mean far fewer payment disputes and the administrative costs that go with them.

EDI speeds up the entire sales cycle (Order-to-Cash):

• Orders are integrated instantly, which speeds up picking and shipping.
• The invoice is generated and transmitted as soon as delivery is confirmed.
• With errors in amounts and references eliminated, the customer approves the invoice much faster, which reduces days sales outstanding (DSO).

Automation eliminates:

• typing errors (transposed digits in item codes, wrong quantities);
• price or VAT rate inconsistencies (the EDI translator applies strict validation rules);
• lost paper documents or emails buried in inboxes.

Historically limited to large companies because of infrastructure costs, EDI is now within reach of SMEs and large groups alike thanks to our solution: an online interface where suppliers check the status of their messages and orders on a web portal, with simple integration of their own ERP.

• EDIFACT: an international, cross-industry standard developed under the auspices of the United Nations and widely used in Europe.
• ANSI X12: the predominant standard in North America.
• XML / UBL formats: modern formats, often preferred for new exchange flows and for e-invoicing legal reforms.
• Industry-specific standards: ODETTE (automotive), GS1 (retail), EANCOM.

Doing away with paper and printing shrinks the administrative carbon footprint. Better despatch advice and logistics flows also avoid delivery errors and unnecessary returns, which cuts transport emissions.