EDI: Efficient communication in manufacturing

Why EDI?

International competition and high customer expectations are pushing manufacturers to work more efficiently. Traditional paper-based or manual processes fall short when dozens or even hundreds of orders and invoices need to be processed each day. EDI changes that. Here are some key reasons why more and more manufacturing companies are choosing EDI:

Time savings and increased speed

EDI enables direct system-to-system exchange of transactions, significantly reducing lead times — order processing can go from minutes to seconds. (At one customer, the processing time per order dropped from 8 minutes to just 30 seconds after implementation.)

Cost savings

Less manual input means less paperwork, lower labor costs, and reduced administrative overhead. Automating thousands of transactions per year results in significant savings — many companies see a full return on their EDI investment within 6 to 12 months.

Fewer errors and greater accuracy

Automation eliminates human input errors. Mistakes in orders or invoices (with accuracy levels of up to 99.9% achievable) and the associated correction work are minimized. This helps prevent disruptions in the supply chain and improves data quality.

Real-time visibility and better data management

EDI enables direct, real-time data exchange. You and your partners always have access to up-to-date information without the need for calls or emails. All data is digital and standardized, simplifying management and ensuring smooth integration with internal systems.

Better collaboration

Fast, reliable communication strengthens relationships with customers and suppliers. Orders and confirmations are exchanged instantly and accurately, increasing customer satisfaction and making collaboration more seamless.

Sustainability

EDI contributes to a paperless organization. Reducing the need to print and send documents is better for the environment and supports sustainable business practices.

Why choose EDI with Breemes?

With over 15 years of experience and more than 500 successful implementations within the itsme Group, we ensure a smooth and reliable EDI integration. After go-live, Breemes provides ongoing support and adds new partners or document types as needed.

What exactly is EDI?

Standard electronic format

Documents are converted into standardized data structures. Regardless of the software used by both parties, the information can be read and processed unambiguously. Common standards include EDIFACT (widely used internationally in industry), ANSI X12 (commonly used in the U.S.), and XML-based or industry-specific formats.

Various business documents

Nearly all documents you might currently send on paper or as email attachments can be transmitted via EDI. This includes purchase orders, order confirmations, delivery notes, inventory reports, and invoices. The involved parties agree in advance on which message types to exchange electronically and what data each message must contain at a minimum.

Direct system integration

Instead of having an employee enter data or send an email, the sending system automatically generates an EDI message as soon as, for example, an order is placed. This message is transmitted via a direct connection or through a so-called Value Added Network (VAN) to the receiving system, which processes it immediately. Everything happens computer-to-computer, often within seconds, without any human intervention.

Security and reliability

EDI messages are transmitted over secure networks or using encryption, ensuring they cannot be viewed or altered during transmission. Acknowledgements are often part of the process, letting the sender know that the message has been successfully delivered and processed.

How does EDI work?

EDI acts as a digital bridge between your company and your business partners. Instead of manually retyping documents or sending them by mail or email, EDI enables your computer system to communicate directly with that of your trading partner. In practice, the process works as follows:

Computer-to-computer exchange

Documents such as orders and invoices are automatically converted into a standardized digital format and sent securely and directly from your system to your partner’s system (and vice versa), without the need for any manual intervention.

Integration with your systems

EDI integrates seamlessly with your internal software, such as your ERP system. Incoming orders are automatically processed as if they were entered manually — but without delays or typing errors. Outgoing documents (such as invoices) are sent directly from your ERP system to the recipient’s system. This end-to-end process eliminates duplicate data entry and keeps all systems in sync.

Standardized data formats

EDI uses standardized formats (such as EDIFACT, ANSI X12, or XML) to ensure that different systems can understand each other. These standards define how information is structured — for example, field X is always the product code, field Y the price — even when both parties use different software systems.

Flexibility and scalability

A good EDI solution supports all common standards and can be tailored to specific requirements. At itsme, we’ve implemented integrations with all major ERP systems (such as SAP, Microsoft Dynamics, etc.) and support dozens of EDI message variants. Whether your partner uses a specific XML standard or an older EDIFACT structure, the EDI connection is configured to fit seamlessly. What’s more, EDI is highly scalable — whether you exchange 100 or 100,000 transactions per month, the process remains just as reliable and fast.

Implementation and support

Implementing EDI requires a one-time setup of the connection between your system and that of your partner. This involves mapping data fields and running tests to ensure that all information is transmitted correctly. Experts from itsme guide you through this entire process from start to finish.

EDI in practice

Blok System Supply (a customer of itsme) is a great example of the practical benefits of EDI. Since implementing an EDI connection, their ordering and invoicing processes have become almost fully automated. They save significant time and reduce errors, as data no longer needs to be entered manually. In addition, Blok now has real-time insight into delivery times and pricing. This shows that EDI makes processes more efficient without compromising collaboration — in fact, employees now have more time for personal contact with customers and strategic tasks instead of administrative work.

Conclusion

For companies dealing with high order volumes and demanding supply chains, Electronic Data Interchange (EDI) is a proven way to modernize communication with business partners. The why is clear: it delivers time savings, cost reductions, and greater reliability. The how: through automation and standardization that integrate with your existing systems. And the what: a direct digital connection for exchanging all key business documents.

By implementing EDI, organizations can boost operational efficiency, minimize errors, and gain a competitive edge. Curious how EDI could work in your specific situation? Feel free to get in touch — we’re happy to think along with you and show you what steps are needed to take your business communication to the next level. You'll experience how a well-designed EDI connection turns minutes into seconds and prepares your company for a leaner, faster future in manufacturing.