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    AS400 EDI Integration – Unearthing Operational Efficiency

    Is your business flooded with a sea of transactions and drowning in paperwork?

    With the involvement of paper-based transactions, it’s obvious to expect manual errors, additional room, and extra personnel leading to inflated operating costs and inefficiencies.

    Picture this: Your entire paperwork is replaced by an efficient solution – Electronic Data Interchange (EDI), and your business witnesses’ dramatic cost-savings and a positive user experience.

    While something is comforting and familiar about the systematically arranged files in your cabinet, these files are simply sitting there, inviting manual errors and inefficiencies.

    With EDI, you get to experience reduced risks and increased cost savings, declining human intervention, enhanced user satisfaction, and real-time visibility.

    Impressive, right?

    Apart from cost-effectiveness, EDI, when integrated with AS400, offers manifold perks such as streamlined data exchange, error reduction by 80%, faster and secure transactions, improved accuracy, and much more.

    Curious to know more about this AS400 EDI integration and how it benefits your business?

    Sit back tight!

    You are going to get the exact answers in this piece! So don’t drop till the end.

    Let’s get going.

    But First, What is EDI AS400 Integration? How Does It Work?

    EDI (Electronic Data Interchange) software unlocks a smooth exchange of data between 2 computer systems in a standard electronic format, replacing paper-based documents such as shipping addresses, invoices, sale orders, etc.

    So how does EDI software work?

    Let’s imagine, you are a retailer, ordering 100 boxes of smartphones from a supplier. Instead of placing your purchase over the paper, you used EDI.

    Rather than waiting for hours, days, and weeks, the supplier’s computer system immediately translated your order into a standard EDI format and sent it to his computer.

    Then, his system accepted the EDI order, processed it, and generated an electronic invoice. Finally, the invoice was sent back to the retail store manager, without a little manual intervention.

    Sounds pretty simple, right?

    However, implementing AS400 EDI is not a walk in the park. There are multiple reasons for its difficulty:

    • The dynamic nature of government rules
    • The intricacy of the global business needs
    • Different formatting needs of different business partners

    As a result, many business leaders, such as you, choose to outsource their EDI system implementation to a reliable EDI AS-400 service provider.

    Whether outsourced or in-house, let’s look at some pre-requisites for a successful EDI implementation:

    • Agreement on document types for consistency
    • Requisite hardware and software for system support
    • Secure transmission methods to ensure data security
    • Message routing mechanisms for efficient message delivery
    • Translation or mapping software for data format conversion
    • Trading partner agreements (TPA) to establish mutual business protocols
    • Batch enveloping or de-enveloping capabilities for efficient large-volume handling

    With these prerequisites in place, you get a complete picture of a seamless AS400 EDI system.

    Are you still not convinced about the value addition of AS400 EDI software to your business?

    What if we told you that an Electronic Data Interchange system can boost your Return on Investment?


    Here are some numbers.

    Don’t You Find the AS400 EDI System Worth Investing?

    Here are some exciting numbers that will blow your mind:

    Implementing EDI AS400 can potentially –

    • Reduce order cost by up to 82%
    • Improve business agility by up to 75%
    • Speed up your business cycles by up to 61%
    • Reduce order-to-shipment cycles by up to 60%
    • Reduce manual transaction errors by up to 80%
    • Reduce the processing cost from $70 in the case of paper-based orders to just $1

    With these eye-popping numbers at your disposal, it’s confirmed that the AS400 EDI improves your business’s profitability by reducing the need for paper, limiting errors to nominal, accelerating your business cycle, and allowing space for more productive tasks.

    As you are now convinced with the WHY of AS400 EDI software, let’s dive into the nuts and bolts of the EDI system.

    How Do You Benefit from EDI AS400?

    Here are a few instantaneous benefits of the EDI system.

    EDI Software Knocks Down Manual Errors

    A human error can cost your business up to 80% defects, leading to pricey affairs and declining customer satisfaction, as per a study by the International Journal of Engineering Research and Applications.

    If you are still relying on print and paper — it is potentially taking a toll on your business more than you think with the price of labor, lost time, and more.

    EDI AS400 system unlocks the pathway for automation, reducing the need for human intervention and sparing you from playing Sherlock Holmes with messy paperwork.

    EDI Solutions Pave the Way for Productivity & Efficiency

    To your surprise, the EDI transactions can reduce the order-to-shipment cycle by up to 50-60%.

    Since the transaction process takes as less as a few minutes, as opposed to hours, days, and weeks.

    Electronic Data Interchange technology facilitates the exchange of data and transactions in a few minutes, with better accuracy, leading to faster completion, better productivity, and improved efficiency to focus on other crucial business challenges.

    EDI System Brightens Reporting and Traceability

    AS400 (Application System/400) EDI technology takes you toward effective data collection, enhanced visibility, and in-depth analysis. As e-documents can be stored, shared, and processed in various IT systems, they unlock a seamless flow of information.

    Moreover, the AS400 systems in-built robust security features allow you to go worry-free with the confidentiality, integrity, and availability of your EDI data.

    AS400 EDI Boosts your Business To a 5-Star Rated Customer-Experience

    Service quality plays a crucial role in customer satisfaction in the competitive B2B space.

    With slower, error-prone, and inefficient business processes, you are shooing away your hard-earned clients into the welcoming arms of your competitors.

    With the EDI system, you not only enable efficient transaction execution but also reliable service delivery, raising your customer experience to a 5-star level.

    Now we have a question for you:

    Would you rather have your crew spend time typing in numbers, creating invoices, or fueling their efficiency with the game changing AS400 EDI?

    While EDI offers a bunch of perks, it does come with its share of challenges.

    Let’s explore the challenges associated with the EDI AS 400 system.

    What are the Challenges of AS400 System and EDI Integration?

    • Inability to justify the high cost of integration and ROI
    • AS-400 compliance challenge with evolving EDI standards
    • Missing compatibility between AS400 legacy system and EDI
    • The sensitive nature of business transactions poses a security concern
    • Scarcity of expert IT professionals with expertise in both AS400 and EDI

    Many business leaders, in the latter stage of EDI development, realize that the challenges of Electronic Data Interchange are outweighing their perks.

    Let’s look at its challenges and their potential solution

    Inability to Justify the High Cost of Integration and ROI

    Better AS400 EDI system integration indicates better ROI.

    The EDI technology investment includes the cost of integration, data security, ongoing maintenance and support, and beyond.

    The solution may fail to offer the desired Return on Investment initially, boiling the doubt about the investment in your mind.

    AS-400 Compliance Challenge with Evolving EDI Standards

    It is crucial to stay up to date with the evolving technology standards as it maintains secure protection, stable performance, and regulatory compliance, and continues to offer efficiency gains.

    With the inability to meet the constantly changing EDI standards, you are left with the unsupported, outdated version that not only rips you off the benefits but also restricts your competitiveness.

    Missing Compatibility Between AS400 Legacy System and EDI

    The AS400 system and EDI compatibility pose a serious challenge owing to their distinct natures.

    To name a few, EDI lacks built-in support, the integration is complex and requires constant maintenance and support, both AS-400 and EDI have unique data formats, and more.

    Although the integration is achievable with the right support, it may pose a serious challenge if not implemented effectively.

    The Sensitive Nature of Business Transactions Poses a Security Concern

    Security stands tall among the priorities for modern businesses.

    EDI AS400 solutions involve sensitive business data, requiring more than a one-way approach. With an inefficient security plan in action, the integrity and confidentiality of your EDI transactions are in doubt.

    Scarcity of Expert IT Professionals with Expertise in Both AS-400 and EDI

    You can wave goodbye to most of your EDI AS400 system challenges with the right IT professionals.

    But finding the qualified AS 400 & EDI experts is like finding a needle in a haystack. The right talent is hard to find and harder to sustain.

    Now, you may be curious about the potential solution.

    Say goodbye to all your EDI system challenges with a reliable AS400 EDI service provider.

    Yes, you heard us right!

    With the scarcity of qualified resources, your best bet is to outsource the integration to a reliable EDI software partner.

    Are you now curious about the cost factor? Let’s look at it.

    How Much Does AS400 EDI Software Cost?

    To figure out the actual cost of your AS-400 EDI system for your business, you have to count the factors involved. Such as,

    • Services charges
    • EDI software licensing options
    • AS400 hardware and infrastructure cost
    • Training services to the stakeholders, etc.
    • Regular support and maintenance services
    • Implementing the solution with your existing system
    • Subscription-based pricing for ongoing software updates and support

    Multiple factors decide the final cost of your AS400 EDI software cost. Additionally, the cost can vary for a small-scale business and an enterprise-level organization.

    This was about the present of EDI technology. Moving on, let’s peep into the future of EDI AS400.

    What Does the Future of AS400 EDI Software Hold for You?

    Consider this scenario: A temperature-sensitive shipment of medicinal drugs is being shipped via a refrigerated ship. The shipper and the carrier have an agreement on maintaining the required temperature throughout the transportation process.

    However, during the shipment, occurs a temperature difference. The EDI 214 document — a Transportation Carrier Shipment Status Message that holds information about the required temperature confirms that the temperature is altered.

    It puts the medicinal drugs at risk, leading to degrading the quality of the product, and inviting potential claims for compensation for compromised goods by the shipper.

    In this scenario, the future of the EDI system looks promising. As- 

    IoT sensors are included in the packaging and connected to the periodic EDI 214 document to improve packaging conditions and provide real-time visibility.

    An AI agent routinely observes the connected events and quickly identifies a non-compliant event. It also determines the need for a new shipment, figures out the most efficient source of replacement, renews the order, and even accepts an authorized return, with little to zero manual intervention.

    Blockchain technology allows you to program a smart contract to control the temperature of the pharmaceuticals. Additionally, the stakeholders can access the blockchain to view the real-time temperature data of the shipment, enabling proactive decision-making.

    But hold on! You need a trusted AS400 EDI vendor to make the magic happen.

    Let’s now dive deep into how to spot the right solution partner for your EDI initiatives.

    Things to Weigh When Selecting an EDI Vendor: Beyond the Price Tag

    Are you a decision-maker looking for the best EDI service provider?

    We understand the need to avoid surprises like the ‘it wasn’t covered in our contract‘ conundrum, ensuring a smoother journey for both parties involved.

    Consider the Questions Before You Shortlist an AS400 EDI Solutions Partner:

    1. What is your EDI budget?

    2. What is their relevant industry experience?

    3. What are your EDI expertise and resources?

    4. What are the capabilities of your EDI partner?

    5. What is the security and scalability of your solution?

    6. What are your EDI system’s weak points & requirements?

    7. What reputation does your EDI partner hold in the market?

    Considering these factors helps you sort the wheat from the chaff, selecting the companies that provide dedicated support from those who might fall short of your expectations.

    If you are looking for an EDI AS400 system development partner, you can count on Integrative Systems.

    Integrative Systems: Your Go-To EDI Solutions Partner

    Based on our experience EDI solutions have the potential to boost your business efficiency cycle by 61%.

    With our 20+ years of AS-400 development experience and expertise, we promise you that outsourcing the AS400 EDI software would be your best decision.

    Our dedicated team of EDI AS400 system professionals has been involved in every level of the Electronic Data Interchange development process for our AS-400 and non-AS/400 clients from diverse industries.

    We are like the force that binds everything together. With our customized approach, we ensure you the business benefits from every aspect of the EDI technology.

    Frequently Asked Questions about Electronic Data Interchange

    1. Why is EDI still used?

    Ans: EDI AS400 system is beloved and adopted by millions of businesses for its tangible benefits such as faster commerce, data enrichment, elevated productivity, and not to forget cost efficiency. Unsurprisingly, it has witnessed a growth of 61% in the past years.

    With the future advancements in EDI through the blend of IoT, Blockchain technology, and AI, its use is set to reach newer heights.

    2. Is EDI an ERP system?

    Ans: EDI stands for Electronic Data Interchange and ERP stands for Enterprise Resource Planning.

    ERP is a software offering multiple modules for different business stacks such as Accounts Payable and receivable, Human resources, purchases and sales, etc.

    Whereas the EDI system focuses on the exchange of critical business information and documents such as invoices, shipping notices, and more between trading partners’ computer systems.

    3. Who Uses EDI Systems?

    Ans: EDI AS400 is used by 2 partners to exchange critical information in a standard format without the need for paper.

    It is highly loved by sectors such as finance, manufacturing, healthcare, retail, automotive, transportation, and many others.

    4. How Is EDI Used in Healthcare?

    Ans: EDI system is used in a variety of useful ways in the healthcare arena. From insurance claims processing, insurance eligibility verification, patient statements, laboratory and diagnostic orders, supply chain management, etc. It has provenly reduced the administrative burden of the lifesavers and improved patient care coordination.

    5.  What Is EDI In System Integration?

    Ans: The EDI integration enables the e-communication of business information such as tax documents, inventory data, invoices, HR documents, customer orders, and more to your own ERP system, CRM, or back-office operations for easier collaboration.

    This blog is brought to you by Integrative Systems. Feel free to share your business challenges, goals, and requirements at [email protected], and our team will get in touch with a detailed AS400 EDI strategy withing next 2 business days!

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