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Calculating ROI for EDI

Written by: Stephen Case on March 11, 2014

ROISo many people ask us what the financial benefits are to using EDI.  Certainly, most business owners understand going digital means going green (less paper) which translates to having less negative impact on the environment. That is important.  But for most businesses and their accounting departments, the bottom line must be their ROI.

Simply, they want to know if they will save money implementing EDI as part of their company’s messaging/communication system.

For the experts at EDIAssociates the answer is a very loud yes. Here is why -

1. The speed of your business transactions will increase dramatically… more sales… more profits.
2. The accuracy of EDI translates to less mistakes, less time spent correcting errors- again a money saver.
3. Your business efficiency will improve strategically and practically. That’s reduces costs at every level.

Here are some results from a Forrester research survey (2012) that substantiate these assets.

“Expenses associated with paper, printing, reproduction, storage, filing, postage and document retrieval are all reduced or eliminated when you switch to EDI transactions, lowering your transaction costs by at least 35%

A major electronics manufacturer calculates the cost of processing an order manually at $38 compared to just $1.35 for an order processed using EDI

Errors due to illegible faxes, lost orders or incorrectly taken phone orders are eliminated, saving your staff valuable  time from handling data disputes

EDI can speed up your business cycles by 61%. Exchange transactions in minutes instead of the days or weeks of wait time from the postal service

Improves data quality, delivering at least a 30—40% reduction in transactions with errors—eliminating errors from illegible handwriting, lost faxes/mail and keying and re-keying errors

Using EDI can reduce the order-to-cash cycle time by more than 20%, improving business partner transactions and relationships.”

Need more persuading?

It is reported that the amount of global EDI transactions are growing substantially and now sits at about 20 billion per year. With those numbers, most likely, your customers will require EDI. For most companies EDI provides too much of a cost savings for businesses small or large to ignore.

Bottom line – by implementing EDI, your company will be more competitive in the marketplace. We at EDIAssociates are fully aware of the cost savings that will occur day one. And we are ready to go over your cost expenditures for data messaging to prove it. Contact us to start saving money and be a player in the ever expanding digital marketplace.. We have options for you to consider, from turning over your entire EDI system or to using our cost effective VAN system which requires no contract and is pay as you use!  Contact us now!

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