Albany, NY -- (SBWire) -- 01/10/2019 --Electronic data interchange (EDI) refers to transaction of business documents in a standard electronic format between business partners. For instance, common documents that are exchanged with the help of EDI are invoices, advance ship notices, and purchase orders. However, there are several other documents such as inventory documents, bill of lading, customs documents, payment documents, and shipping status documents. Electronic data interchange helps organizations to standardize the interchange of data between applications across the supply chain. This procedure guarantees that business-critical data is sent on time. Electronic data interchange replaces the mail preparation and handling associated with the traditional business communication. However, EDI helps to standardize the information communicated in business documents, which makes it a paperless exchange.
EDI solutions help organizations increase performance which is one of the key factors expected to drive the global electronic data interchange (EDI) market during the forecast period. Fast processing of accurate EDI documents leads to fewer cancelled orders, less repeated work, and fewer stock-outs. Additionally, shortening the order process and delivery times mean that organizations can reduce their inventory levels. However, limitations of electronic data interchange (EDI) include high cost and time-consuming deployment. Moreover, EDI needs constant maintenance since the business depends on it. A large number of organizations consider EDI to have too many standards. This restricts smaller businesses from dealing with larger organizations that use an updated version of document standard.
The global electronic data interchange (EDI) market can be segmented based on component, type, end-use industry, and region. In terms of component, the market can be bifurcated into solutions and services. The service segment is anticipated to hold the largest market share. Based on type, the global electronic data interchange market can be classified into direct EDI, EDI via VAN, EDI via AS2, web EDI, mobile EDI, EDI outsourcing, EDI software, and others. In terms of end-use industry, the electronic data interchange (EDI) market can be categorized into automotive, banking, financial services & insurance, telecommunication & information technology, retail & consumer goods, manufacturing, healthcare, logistics, and others. The banking, financial services & insurance segment is anticipated to account for the largest market share, as this industry depends on the ability to process accounts payable and receivables, as well as managing investments and loans on behalf of its customers, both retail and wholesale. Additionally, the evolution of international trade has formed interdependencies between suppliers and buyers across the globe, resulting in the globalization of financial supply chain. Difficulties arise when working across worldwide boundaries which includes currencies, regulations, and accounting practices. Electronic data interchange (EDI) lessens these difficulties by bringing into track the financial supply chain data. A totally programmed financial supply chain allows accurate, seamless, and timely interchange of financial data between buyers, suppliers, and their financial institutions.
Electronic Data Interchange (EDI) Market- EDI Solutions Help Organizations Increase Performance