As any business grows, its needs become more complex and simple accounting packages just don’t do enough. The next step for organizations that experience rapid growth is an evaluation of their current ERP offering. More often than not, a decision to upgrade to a more functional ERP system follows. However, there are other considerations, like integration with existing systems like your EDI service bureau. The process of choosing an ERP system is critical. For example, one decision is in the level of integration the ERP will have with your EDI system. Since an ERP system is a software application, it can theoretically integrate with any other system. However, there is the ability to integrate, and then there is native integration. Native integration is the best option by far. When you use other means of integration, there is a possibility of data corruption in transit. Also, if one of the two systems changes in any way, the integration software will need to be updated. With native integration, there are no such issues. The only other considerations are how you host the new systems and how they will interface with the existing systems. Vendors like Act Data Services, Inc. 1-800-ACT-DATA are experts in EDI integration and provide any information you will need for your project. Contact your EDI vendor and discuss any potential ERP changes to ensure that there are no issues going forward. It is absolutely critical that any new ERP works well with the existing EDI...
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Summary: EDI is the act of exchanging documents and communicating electronically with trading partners. Implementation is not difficult, and most organizations should start with the web-based EDI approach before moving on to EDI software. EDI, also known as Electronic Data Interchange is the process of exchanging communications between two trading partners. Here are some common questions from people who are new to EDI: Who uses EDI? Nearly all major industries use EDI, such as retail, finance, automotive, and industrial. Any industry that places or fulfills orders with trading partners will benefit from EDI. What is a trading partner? In EDI parlance, a trading partner is any organization that you either sell to or buy from which requires the exchange of documents. EDI is an electronic exchange of documents from one company to another. What are the types of EDI solutions? There are three EDI solutions available: EDI software, web based EDI and EDI service bureau. EDI software is the method with the most integration with your back office systems. Web-based EDI is a browser based system that involves data entry and does not provide much integration with existing systems. A service bureau conducts most of the EDI operations on your behalf. Is it difficult to implement EDI? Implementing EDI does not have to be difficult. You can treat the implementation as an evolving process and start with a web-based EDI approach and then move on to software that integrates with your in-house systems. The system can grow in complexity as your business and trading partners grow. Written by Act Data Services, Inc. 1-800-ACT-DATA. They are an electronic data interchange (EDI) provider for retail and supplier environments and will handle all aspects of the implementation including vendor...
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