Retail chain A has over 100 stores in Baltic countries. Every day A stores are ordering Candy X candy from Distributor. So, at least 100 orders need to be entered into Distributor’s system. Instead of sending orders by fax, email or by phone, each order is sent as a file, which is forwarded by EDI-provider and then imported directly into the Distributor’s system. No order entry takes place. It happens automatically, thus number of errors is reduced, and people’s time gets saved.
Let’s reverse the situation. Distributor is generating at least 100 invoices per day, which then to be sent to Retailer. Retailer has to enter these into its business software system. Considering the fact Retailer has many vendors, it takes a few persons for data entry only. If the invoices are sent via EDI, these persons are not needed. Invoices are imported straight into Retailer’s system.