Cash flow is the lifeblood of any business, and making it effortless and seamless is easier than ever with advanced technology, EDI integration and hundreds of reams less paper! One of the biggest challenges business owners and executives have is keeping the business operating smoothly while maximizing profits. Integrating your business systems, including electronic data interchange (EDI) will improve workflow dramatically by offering your team members access to the most up-to-date information at all times and streamlining processes like order management, electronic invoicing, and payment remittance.
Electronic Data Interchange
Integrating electronic data interchange (EDI) software allows you to track sales from initial order to fulfilment and payment. This type of end-to-end tracking organizes each element of the procure-to-pay (P2P) transaction and offers you to-the-minute data about each order separately, and your entire pipeline collectively.
EDI integration streamlines both your purchasing and billing processes while eliminating the need for stacks of paperwork. It allows you to instantly submit invoices to your customers via e-invoicing and take advantage of dynamic discounting plans to speed up payments and keep your cash coffers full. It also makes it simple for your organization to receive, schedule, and pay each of your own vendor invoices in a timely manner, using discount management to pay the least amount possible. EDI gives you the complete overview of what you owe, and what is owed to you, at any given time. When you can get instant information about company finances anytime you need them, it enables the best decisions for your business.
EDI is a full lifecycle system that allows electronic delivery of payment remittance details while also validating invoices before submission. Checking for errors first prevents delays due to unnecessary resubmissions. Getting complete and accurate information during customer onboarding is key to having the proper data each of your customers require to get your invoices paid quickly. This improves your cash flow by eliminating paperwork problems.
On the flip side, EDI vendor management makes ordering supplies and products easier and more secure. After supplier onboarding, you can set up a supplier portal for your orders, so that you know you are being billed agreed-upon amounts for ordered quantities of products. Further, you will have records of everything connected with each order within the EDI system; hosted imaging shows purchase orders, shipping notices, and invoices. These methods make the ordering processes more secure and protect them from tampering.
You can further streamline your business and improve your cash flow by adding additional automated tools. Workflow programs allow your business to automatically route all necessary documents to the proper recipients, while processing, encoding, and releasing invoices, check requests and P-Card transactions. Everything is centralized so that authorized employees can easily get the information that they need, again ensuring faster payment.
This technology also lets you share documents with your suppliers, which speeds up communication and delivery of products — things that improve your cash flow.
Even in the very best situations, a minimal amount of problems will happen and disputes will occur. With EDI, disputes won’t stop all productivity while documents and products are tracked down. Instead, it will speed up dispute resolution by providing electronic versions of all relevant information about each transaction. These can be shared with the customer or vendor to quickly and efficiently pinpoint the error and correct it. All communications are stored online, with team members having access as needed to resolve appropriate issues.
EDI will allow you to save money and improve cash flow. You’ll also save time and reduce worker frustration by eliminating the mounds of paper invoices, billing statements, and other documents. Each team member will become more productive, make fewer mistakes, and have more time to devote to great customer service. Simply put, when your business is integrated with EDI and workflow automation, it will run more smoothly and be more profitable while offering better service to both partner vendors and customers.
Considering EDI integration for your business? Contact Direct Commerce and partner with experts who can help you improve cash flow, reduce administrative costs, and grow your business with the added profits.