When important documents are transported in paper form, there’s a lot that can go wrong. They could be lost or damaged. Transporting these documents electronically means that they’re guaranteed to get where they’re going unscathed.

When paper documents are exchanged in the supply chain, they must then be put into logistics software systems. Any time people are responsible for handling information, there is an understandable margin for error. EDI can improve accuracy as there are no data entry mistakes when the data is input into computer systems automatically, plus processing documents electronically is faster.

EDI also costs less than managing paper documents. Part of this cost effectiveness is due to the time saved, but it also saves on space, printing costs, and savings due to early payments since EDI makes receiving and paying invoices easier. It’s more difficult to place a numerical value on improved relationships with business partners, but there are certainly monetary benefits.