Understand the Essentials of EDI Technology






Electronic Data Interchange (EDI) is the process of electronically exchanging business documents and data between companies. In a nutshell, EDI technology is an electronic conversation between two business systems of companies called ‘tradingpartners.’ EDI technology makes sure that the data that is being traded is structured and standardized for a smoother communication between trading partners.


Many government agencies, both large and small businesses, and other organizations use EDI transmissions every day because it is automated for efficiency, it’s effective, and it’s secure. And because of its cross function capabilities that are supported by multiple industries and companies of all sizes, it is one of the most commonly used B2B e-commerce technology systems used today.

There is a well-rounded selection of EDI solutions available at various price points available for your Sage software. Various features available include the ability to send and receive data using an interface that is comparable to email, free upgrades, automated notifications, and automated EDI invoices.


There are many benefits of EDI technology that result in both direct and indirect ways to cut costs and save money.

1. Efficiency – Because there are no paper documents that are being transferred, documents and information is delivered fast. The speedy communication results in a faster turnaround, higher customer satisfaction, and competitive advantage.

2. Accuracy – Human error accounts for a host of problems that can come with data management and exchange. This element is removed, reducing errors and lowering costs of shipping and returning mistake orders.

3. Reduced Direct Costs – Document storage, paper, toner, postage, and other direct costs add up quickly. You can save this money with EDI technology.

4. Indirect Benefits – Indirect benefits of EDI technology include improved cash flow, a better use of warehouse space, reduced lead times, and more frequent inventory turnover.

Contact us for a detailed discussion about how EDI can impact your business or for a review of the integrated EDI solutions that are available for your Sage software.