WHAT IS EDI?
EDI - Electronic Data Interchange - is the computer-to-computer exchange of structured business information in a standard electronic format, without the need of human intervention. For example, a customer’s computer might send an order to a supplier’s computer, which in turn would enter the information automatically into the sales order entry system. Customers may send their EDI messages to Sonae Arauco directly from their systems, turning the processes more automatized and saving time and effort to both parties.
BENEFITS OF USING EDI
EDI reduces the costs of staff, supplies, and office and storage space. Moving from a manual to an EDI process frees up staff to concentrate on other aspects of the business.
When bad data makes its way into internal systems, such as the supplier’s sales order processing, the customer’s accounts payable or transportation management systems, that bad data has a negative impact on the business. The integration of business documents via EDI enables business data to be fed directly into the internal systems without relying on manual re-keying. Having more accurate data means that the entire supply chain becomes more efficient.
EDI transactions can be exchanged and integrated in minutes. There is significant time saved by the elimination of data re-keying and its high error rate, which results in time-consuming corrective actions.
The use of EDI reduces order processing times since order data sent by customer will automatically be integrated into Sonae Arauco SAP sales order processing system. EDI ordering and shipping provide greater visibility into the supply chain, leading to fewer stockouts and eventual lost sales. EDI invoicing enables customers to process and approve invoice payments faster. This allows customers to take full advantage of timely payment discounts, which in turn means improved cash flow for the suppliers.
After establishing an agreement for implementing EDI between Sonae Arauco and the customer, it is necessary to define what are the EDI business messages in the scope.
Sonae Arauco can implement one or more EDI messages, according to each customer needs, increasing security, reducing errors, and maximizing cost savings.