EDI as a Competitive Advantage

  May 18, 2012       By Ray Atia
In reality there are only two characteristics that beat the competition. The first is quality of the product or service and the other is speed. Business entities that spend time researching to improve old products or develop new products or services are the businesses that will attract customers. Attracting new customers mean more sales. Those sales translate into a larger bottom line. Why EDI Means More Sales: Electronic Data Interchange provides the fastest possible speed for communicating information from one location to another. Ordering products, advertising new products or services, marketing, and paying invoices are a few examples that illustrate how EDI gives a competitive advantage. The purpose of any business that depends on inventory is to keep the inventory low without losing sales. Electronic Data Interchange gives a business a competitive edge by communicating with various points of sale to be certain that the proper items are available at the right time. The supply chain is maintained with efficiency using Electronic Data Interchange to anticipate interruptions. Effective communications make it possible to reroute items so that the shortest and fastest route is found to get the items to the customer. In addition, clerks can tell the customers why their items are delayed and when they can expect them. Every Phase of the Business Becomes Efficient: With Electronic Data Interchange, you can plan every phase of the business. When a customer orders an item, you know the exact time it leaves the warehouse, the various stops it will make, and what time it arrives at the point of sale. The billing process is completer, and another satisfied customer has received his or her product on time. Cash Flow: The most essential part of any business is planning cash flow. EDI can improve the efficiency of cash flow by planning the amounts of cash needed at specific times. Knowing when to pay a bill, and having cash available to pay it can be enhanced by EDI. Arranging a loan or transferring cash from one account to another can improve the efficiency of the business. Efficiency Means a Competitive Advantage: Any business that operates efficiently will have the competitive advantage over businesses that are operated inefficiently. Electronic Data Interchange gives any business the opportunity to operate at its maximum efficiency.