EDI, XML increase reliability of order management within supply chain -report

According to the study entitled ‘EDI: Workhorse of the Value Chain’ released by research company Supply Chain Insights and GXS, a provider of B2B integration services, EDI increases perfect order fill rate and halves processing time.

The study revealed that the top benefit of using EDI and XML in the supply chain, cited by 85% of study participants, was improved relationships with their business partners.

Also, the study found that EDI/XML improves cycle times, enabling faster order delivery for increased customer satisfaction. When comparing a fully automated EDI/XML approach for orders to one with minimal manual intervention, the time from order receipt to shipment is halved from seven to three days. Orders not processed through EDI are more time consuming with more frequent errors.

Finally, the study also revealed the inefficiencies related to Purchase Order changes. Suppliers stated that only 60% of changes to POs were processed via EDI. For 70% of the surveyed suppliers, this lack of automation for PO changes leads to more imperfect orders. Another consequence is that one third of buyers and suppliers face a greater challenge reconciling invoices and receipts with orders.