Thanks to Electronic Data Interchange (EDI) piles of paper created in communications between retailers and manufacturers are a thing of the past now that business partners exchange orders, delivery notes and invoices electronically. 
What are the advantages of EDI?
Retailers and manufacturers both benefit from the paperless electronic exchange of information. As EANCOM is internationally applied and accepted by retailing companies it easily overcomes language barriers. EDI is a multi-vendor solution in software and hardware terms. A so-called converter, which is like a translator, translates the messages. This applies from the EANCOM standard into the respective company internal format as well as from an in-house format into the respective EANCOM format. This translation activity is handled for METRO Group by two central service centers.
Less paper eradicates mistakes
Masses of data which are part of routine business are recorded once based on EDI and then processed on levels downstream. Information about products and goods flows packaged in EANCOM messages can be easily transmitted into the IT systems of the company without any additional workload for staff. Mistakes which crop up with manual data entry are avoided. The information used is consistent and reliable. Delivery dates and amounts are announced in advance using EDI. The system automatically checks if they comply with the retailer’s electronic order.
Faster reaction
Optimizing the flow of data also improves the flow of goods. As information reaches recipients more quickly lead times between issuing orders and the goods hitting the shelves in the stores are cut. EDI also taps automation potentials in individual process steps. Retailers can react to customer demand much more quickly. Suppliers are able to tune their production more finely to demand in just-in-time concepts. EDI ensures that goods are available in stores, without higher stock levels being required. Having only limited storage facilities cuts costs considerably.
Concentrating on core activities
EDI relieves staff from laborious data entry and frees them up to concentrate on important tasks. Users can observe improvements in the quality of work and job satisfaction. The time saved can now be expended on analyzing customer behavior more closely and keeping an eye open for innovative products.
