Why Cloud-Based EDI Is Imperative for Manufacturing

Electronic Data Interchange (EDI) is essential to many manufacturing operations. It streamlines communication with suppliers, reduces documentation errors and supports agile supply chains, but the use of EDI in the steel fabrication Australia industry often falls short of its potential. Too many organizations overlook the value of a cloud-based EDI. While up to 86% of businesses already use EDI technology today, just over 60% of them keep related data in the cloud. That means nearly half of the companies using such software rely on an inferior version. As Industry 4.0 initiatives pick up across the board, it will become increasingly important for manufacturers to reverse this trend and upgrade their EDI. This blog will look to deep dive into this topic.

Benefits of Cloud-Based EDI

Cloud-based EDI functions similarly to conventional solutions but runs entirely online instead of using on-premise IT infrastructure. Keeping all data and functions in the cloud offers several critical advantages for manufacturers and their supply chain partners.

Improved Communication

Moving EDI to the cloud makes it easier to connect it to a wider range of data. As a result, manufacturers are not stifled by data woes and can share more with suppliers, 3PLs and other third parties. Considering just 6% of organizations today have full visibility into their supply chain, a little communication can go a long way. The primary benefit here is that a cloud platform provides a single source of truth. All EDI users will upload data to and get information from the same place. Consequently, they avoid miscommunication and conflict from different parties having unsynchronized records. Cloud EDI also minimizes errors because Internet of Things (IoT) endpoints and other devices can upload new data directly to the cloud. No in-between step or manual transmission is necessary, reducing the chances of transcription mistakes or omissions. Higher accuracy, in turn, prevents supply chain disruptions.

Higher Efficiency

Automatic data uploads and a single source of truth have a secondary advantage — efficiency. EDI records in the cloud overcomes some limitations of AI and IIoT in manufacturing as it will always reflect the latest information without delay, as separate users no longer need to send updates to others. Automatic uploads further streamline communication by removing the manual element entirely. Many cloud-based EDI solutions come with automation features. These may include automatic document transfers, data organization, chart and graph generation, data entry, automated alerts, and inventory management. When these processes require no human input, manufacturers can more easily work around the labor shortage affecting the industry. It is worth noting that setting up a cloud platform is far faster than an on-premise alternative, too. Manufacturers do not need to install any IT infrastructure or upgrade their hardware because everything runs on remote data centers.

Scalability

Similarly, using cloud EDI in manufacturing improves overall scalability. Removing on-premise hardware concerns and interoperability barriers means businesses can scale up almost instantaneously. It is often little more than paying for a new data storage tier or authorizing another party. Downsizing and lateral scalability are likewise cheaper and faster in the cloud. Setting up new alerts, reducing data storage, aligning workflows with new goals, and making other adjustments can take mere minutes. This agility is essential in a rapidly changing manufacturing environment. Supply chain strategies are shifting across the sector, and disruptions in areas like mining plant and equipment Australia are increasingly common. As a result, manufacturing organizations need to adapt quickly to maintain productivity and profitability. Achieving that level of scalability with an on-premise EDI would be expensive and slow, but a cloud alternative makes it accessible.

Closing Statement

An effective EDI in manufacturing must be as agile, accurate and secure as leading manufacturers themselves. The only way to achieve that is to use a cloud-based alternative to conventional solutions. There is a reason why cloud EDI is becoming increasingly popular across industries. It provides the communication, efficiency, scalability, and security modern businesses need. Manufacturers should jump on that potential now if they do not want to get left behind.