Electronic data interchange, known as EDI, allows your company to exchange documents and information quickly and efficiently from computer to computer during the importing process. EDI allows two different companies, or even two different countries, to easily exchange documents such as invoices, purchase orders and shipping notices quickly when doing business.
Does your customs brokerage firm use EDI? Here’s a rundown of what is EDI and why electronic integration is important for importing.
Speeding up the Importing process
First and foremost, the EDI process and electronic integrations for billing and invoices are important because it speeds up the lengthy paperwork process, making everything move faster. In some cases, EDI can be done in real time. That’s important when you’re working to import goods into the United States with a Customs Broker. Faster transactions for billing and invoices allows inventory to move faster, improves the use of warehouse space and lowers freight costs.
EDI Process Saves Money
Time is money when you’re importing goods. Customs Brokers are trained to use electronic integration to make processes faster during the import process. EDI ensures the fast and reliable exchange of paperless data between computer systems doing business together. EDI also saves on costs by improving operational performance across departments in your company and can even speed up the billing cycle.
Four EDI Components
A fast and efficient electronic exchange of transactions consists of four important components for importers:
- A Web-based EDI tool works to sync your accounting information into an EDI format
- A EDI mapping component syncs your accounting system to your customer’s system
- A transaction network that sends and receives transactions
- An EDI ongoing support and maintenance system
Benefits of using EDI
All companies, big or small, utilize EDI technology as a tool to stay competitive and to grow. The process speeds up data exchange while increasing productivity. Importers also benefit from:
- A streamlined process
- Expedited information flow
- Accurate accounting
- Improved inventory management
- Lower overhead costs
The EDI process can be challenging. That’s why it’s best to work with a Customs Broker that’s trained to utilize the efficient practices of EDI services, ensuring your documents and invoices move through the importing process quickly.
AFC International will oversee the entire EDI process for you and make sure you stay compliant during the entire importing process. Call us at 800-274-2329 today to get started!