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3 Key Reasons Why Companies are Opting to Use Cloud-Based EDI Solutions

By on September 12, 2019
EDI Solutions

Electronic data interchange is a process which companies use to transmit information among their trading partners in standard electronic formats. These can be in the form of ANSI X12, EDIFACT, or HIPAA. It is a better approach to exchanging paper documents for various transactions these businesses may conduct in the market. The technology makes it easier for the people in charge of managing such companies to streamline their commercial operations. The entire process is cheap and free from the inadvertent human errors which these managers associate with a manual system. Even small businesses are joining their corporate counterparts to adopting this technology to gain a competitive edge in the market.

Why are companies opting for cloud-based EDI solutions?

Companies of various sizes have been using traditional electronic data interchange software systems for years. Nevertheless, experts in EDI say the managers of such businesses are questioning the suitability of this technology in today’s market environment.  Many of them are seriously considering opting for cloud-based EDI solutions to meet their businesses’ specific requirements. They do not mind hiring reliable corporate vendors providing such facilities for a reasonable price. It is a cheaper alternative to overhauling their companies’ existing infrastructure. The specialists point out the following three reasons why these business owners want to take such a step:

  1. Ever-increasing infrastructure costs

Managers are aware that using a traditional electronic data interchange software platform is cheaper than a manual system.

Nevertheless, they still have to incur huge expenditure to set up the necessary infrastructure in-house.

Moreover, these managers need to bear additional costs of employing qualified professionals to maintain and operate the technology. Fortunately, they do not face such difficulties when opt to use cloud EDI solutions. This is because the service providers their companies choose to take care of the infrastructure issues.

  1. Limitations on accessibility

Many companies are now expanding their commercial activities into international markets. Using a traditional in-house electronic data interchange software system does not suit these businesses’ specific needs. This is because the managers of such companies cannot access this technology remotely when the need arises. It is a serious drawback for them as they find it difficult to communicate with their foreign trading partners. This is not the case with suitable electronic data interchange solutions using cloud technology.

  1. Avoiding technical glitches

Managers of companies operating traditional electronic data interchange software platforms need to upgrade their infrastructure frequently. Such upgrades are necessary when they have to conduct business dealings with more than one trading partner. Nevertheless, undertaking such technology upgrades has its own set of problems which often hamper their companies’ commercial operations. Opting for suitable cloud-based EDI solutions allow these managers to overcome such risks. This is because their service provider handles such issues.

 Companies now realize the necessity of opting for cloud EDI solutions to streamline their commercial operations. Managers of such businesses take such a step helps to take advantages of opportunities ever-changing market environment provides. Moreover, they can overcome many of drawbacks of traditional EDI software system. These include ever-increasing infrastructure costs, restrictions on accessibility, and technical glitches.

About Pooja Sharma

Pooja is a digital nomad and founder of She travels the world while freelancing & blogging. She has over 5 years of experience in the field with multiple awards. She enjoys pie, as should all right-thinking people.

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