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EDI ACADEMY – Integrating EDI with the ERP

21/03/2017

EDI ACADEMY – Integrating EDI with the ERP

On a daily basis, large companies process huge volumes of business and administrative transactions: invoices, orders, delivery notes, despatch advices… This task is usually carried out with an ERP or internal management system, so that when it comes to rolling out EDI, many companies ask whether their staff will also have to manage a different environment and, therefore, if it will be necessary to modify all the in-house working procedures. The answer is a resounding ‘no’.

Electronic data interchange is specifically designed to automate communications between businesses and make them more efficient. This means that EDI transactions can be integrated with any ERP by simply making some adaptations to the system.

What is achieved by integrating EDI and the ERP?

The main advantage is that procedures become faster and more efficient. By integrating EDI with the ERP, the entire management system document flow is automated, along with forwarding and recording of incoming files. This way, staff can maintain their working procedures, but now without paper, boosting productivity and with tighter security guarantees.

Using an electronic data interchange solution integrated with the ERP lets you overcome two habitual obstacles:

  • The difficulties involved in setting up the communication flow between the partners in a business relationship, due to the lack of interoperability between manufacturers of the different ERP models. With EDI integration, this barrier disappears. Moreover, the solution automatically translates the message created in the ERP into the standard accepted by the recipient.
  • The double workload involved in managing the ERP on the one hand and the EDI platform on the other. Although EDI solutions in secure web environments are a good option for small businesses due to their low cost and quick start-up, they are insufficient for companies that need to handle a large volume of transactions. This is because the entire process is performed manually, unlike integrated EDI, which operates unassisted.

Ediwin XML/EDI Server, integrated EDI from EDICOM

Some big international companies from different sectors, such as Grupo Panalpina, Alcampo or Abbot, have already integrated EDI into the ERP through the Ediwin XML/EDI Server solution developed by EDICOM. This software functions in ASP-SaaS mode and maintains permanent communication with the company’s ERP or internal management system.

The way it works is really simple. Every time the document is created in the ERP, it is automatically transferred to Ediwin. The solution acknowledges the recipient, transforms the message into the pertinent standard and forwards it via the communications protocol required in each case. When documents are received, the same process takes place, but in reverse.

Ediwin is a multi-sector, multi-standard and multi-protocol solution, which integrates with any ERP on the market (SAP, Oracle, Baan, Navision, etc.). In addition, it is ready to issue electronic invoicing according to the requirements of more than 60 countries around the world, allowing multinationals to centralize their transactions in a single platform.

Would you like to know more about electronic data interchange? Check out the complete EDI Academy series here.

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