“No man is an island,” goes the old saying. That quote can be adapted to fit the business world. No company can operate in a vacuum. Everyone needs partners in the supply chain in order to survive.
Forging stronger partnerships with suppliers can be challenging. However, technology has made it easier to build such connections. Specifically, today’s EDI software possesses capabilities that previous iterations of this solution lack. Read on to learn why modernizing your EDI system helps you develop better strategic partnerships with your suppliers.
Why Do You Need to Modernize?
There is another popular saying: “If it ain’t broke, don’t fix it.” For many companies that use legacy EDI software, it "ain’t broke." So, they are not going to invest the money to fix it.
While the EDI software itself might be a reliable workhorse, it is not the only part of the equation. The software requires databases, servers, and specific operating systems. Over time, those components become older and their manufacturers go out of business, are bought out, or stop supporting their products.
Thus, in order to continue using an EDI system, it becomes imperative that you move to newer EDI software that will be properly supported long into the future.
What Are the Benefits of Modern EDI Software?
Aside from the issues of outdated infrastructure for legacy EDI software, newer EDI software has greater functionality.
Today’s EDI software handles all communication between suppliers and their customers. In addition, you can see a detailed transaction history between you and your supplier. All of your communication transactions and processes are more visible than ever, and you never have to worry that your messages did not arrive; delivery is guaranteed.
Even if you are concerned that a document did not arrive at its intended destination, you can resend it. Moreover, you can rerun processes if necessary. As an added advantage of modern EDI systems, the mapping tool is much easier to use than legacy EDI software.
The Connection between Modernizing EDI Software and Stronger Supplier Relationships
“It is great that newer EDI software can do all of these things,” you say, “but how exactly will it strengthen my relationship with suppliers?”
The innovations in newer EDI software make your firm a more attractive customer to suppliers. Here is why. It is easier to do business with someone when you can communicate with that company instantly. Today’s EDI software enables that. It also allows customers to submit payment for invoices electronically so suppliers receive their payments faster.
Moreover, communication is more accurate because data is drawn directly from digital sources rather than being entered manually by employees (a method which is rife with errors). That means that your orders are more likely to be correct, and because they are transmitted and received automatically, the supplier fills your order faster.
Making it easier to do business with your company is part of staying competitive. Modernizing your EDI software helps you accomplish both of those goals. For some real-life examples of how modern EDI systems give companies a competitive edge, take a look at some of our recent success stories.