Strategic advantages: EDI is primarily a way of doing business. Companies gain competitive advantage by greater customer satisfaction and improved supplier relationship. This makes it more difficult for competition to take over business in client account.

Since the business operations with the customer is more efficient, a large amount of market share results. Functional efficiencies due electronic invoicing and payment system, improved sales operations are immediate benefits.

EDI and product numbers: GS1 article numbering provides each item to be uniquely tagged for identifying and tracking along the supply chain. By using EDI / EANCOM format and GS1 article numbering, products can be tracked and this information can precede the actual delivery of items.

EDI and location numbers: Codes are the most efficient way of communicating location or company identification than full text. Name and address, information about particular locations and special trading requirements do not need to be communicated for every transaction. The necessary information is communicated once, entered into computer files and subsequently retrieved by reference to a location number. Using GS1 location numbering and EDI / EANCOM format, a comprehensive facility of assigning unique codes to every company, site, location and item can be achieved.

Faster Trading Cycle benefits: A successful EDI system can dramatically shorten the order to delivery and invoicing to payment cycles leading eventually to reduced inventory, and accounts receivable, better cash flow management and a release of working capital.

Saving in Processing Costs: EDI eliminated processing errors, cuts stationary telephone, fax, photocopying costs.

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