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EDI, a tool for exports in a global market



Global trade and exports are recovering the levels of growth lost during the recent economic crisis especially in the BRIC countries (Brazil, Russia, India and China). A clear example of the recovery of global exports is Brazil. Last year, the country set a trade surplus balance record of $47,690 million dollars.

In fact, since the surplus of 2006, the South American country hasn’t seen such an increase in funds, specifically, $46.450 million dollars. The good part about Brazilian exports is demonstrated by the fact that Brazil is one of the top 25 exporters and importers in the world and that foreign trade makes up 25% of its GDP. These figures are mainly due to B2B sector operations involving the trading of raw materials, hydrocarbons, chemicals, agricultural products and food products such as coffee, sugar, meat and corn.

The great potential of Brazil represents a great business opportunity at the global level for the B2B sector and all types of companies that want to access new markets and business opportunities. Good economic relations increase the confidence of companies counting on electronic data interchange, especially in exports when processing invoices, purchase orders and doing other activities.

The use of EDI in exports is the best way to trade with another partner in the world. The standardization of processes and control measures offered by EDI ensure secure communication flow between corporations as well as public and private entities. This way it’s possible to connect the internal management systems of companies with those of the banking entities to avoid human error, or even worse, fraud.

Furthermore, even though Brazil has good foreign trade numbers, the internal situation of the country makes taking security measures a requirement. Security measures guarantee the balance of accounts when conducting commercial operations in the country, which is led by Michel Temer.

A foreign trade business opportunity

Globalization forces companies to adapt to different systems and platforms to be able to operate in any corner of the planet. However, thanks to EDI, this problem has a simple solution.

The complex variety of commercial operations makes document management difficult between countries, however EDI facilitates all kinds of procedures by standardizing the exchange of B2B processes. Simple operations such as stock management, shipping to suppliers, invoice payments or order processing suddenly became easier tasks thanks to EDI.

Having a global operator allows companies to develop operational policies that are more agile and efficient by having adequate computer management systems capable of operating in business relationships through combined software management and secure and private networks. This way, the exchange of standardized documents between the computer systems of both B2B parties is ensured.

Furthermore, EDI maximizes the exchange of operations and is the best way to take advantage of the current positive economic situation in Brazil. Although the use of invoicing is increasingly common in B2B relationships, it does not follow the same pattern in all countries.  Brazil is no exception, which is why there’s a need to have an optimal connection throughout the supply chain and ensure the sending and receiving processes in the ERP.

This way, any company can manage logistic business processes and establish all the necessary steps to connect with its suppliers, customers, logistics operators, and commercial partners using a global network.

The importance of standardization in an era of globalization

EDI solutions adapt to any need, business or ERP. Companies don’t have to adopt the different types of documents and processes their suppliers or clients use, but they can manage them through EDI. In Europe, standard UN/EDIFACT is most commonly used while in the United States, ANSI X12 (from the English acronym American National Standards Institute) is most commonly used.

Thanks to EDI connections can be established with markets as attractive as Brazil’s and companies can take advantage of their flow of exports, which reached a spectacular value of $185.240 million dollars, an unforgettable feat. Some economic specialists like Peter Gutmann or Goldman Sachs affirm that Brazil will have the fourth most important economy on the planet in a few years.

It is estimated that in 2050, it will reach the standard of living of 2,005 countries in the Euro Zone thanks to the fact that it will have a GDP of $11,366.000 million dollars and a per capita income of $49,750. In short, all countries will have to operate in the largest powerhouse in Latin America thanks to its economy.

Do you want to know how to establish an EDI solution that suits your company in order to optimize your international communications? Don’t hesitate. Contact us today.

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