Efficient EDI integration in Dynamics 365 – automate processes and reduce costs

What does EDI actually do? 

Electronic Data Interchange, or EDI for short, is the automated, standardised exchange of business documents between the IT systems of two companies. This includes orders, invoices, delivery notes and many other types of documents. Unlike manual transfer methods such as email, this information is transferred directly from system to system – without human intervention and without media breaks.  

Standardised data formats are used to ensure that EDI works. They define how the information is structured so that the systems of all partners involved can understand and process it. This degree of standardisation is the key to smooth, error-free and fast business processes – especially when there are a large number of partners involved.   

Why EDI is indispensable today 

The volume of business transactions is constantly increasing. Supply chains are becoming more complex, customer demands are rising, and companies are working with a growing number of international partners.  

With EDI, companies can speed up processes, reduce costs and eliminate sources of error. Orders that used to take several hours or even days to process can now arrive in the ERP system within seconds. Typos, duplicate entries or incorrect item numbers are virtually eliminated through automation.  

In addition, many large trading partners now require EDI-enabled interfaces. Those who cannot offer this risk additional costs for manual processing or even exclusion from projects and tenders. In short, EDI is not only an efficiency issue for many industries, but also a ticket to the market. 

How an EDI system works 

An EDI system is essentially a translator and intermediary between internal applications (e.g. ERP, CRM or warehouse management system) and the systems of business partners. The process can be divided into four main steps: 

• Data capture: The internal system generates a document, e.g. an order.  

• Conversion (mapping): The internal data is translated into the standardised EDI format.  

• Secure transmission: The message is sent to the partner via a communication protocol such as AS2, SFTP or a value-added network (VAN).  

• Integration at the recipient: The receiving system translates the message into the internal format and processes it automatically.  

Modern EDI systems also offer monitoring, error management, archiving and partner management. 

EDI integration: The decisive step 

The introduction of an EDI system is only the beginning. EDI can only unfold its full potential through seamless integration into the company's core systems – above all, the ERP.  

 EDI integration involves the creation of bidirectional interfaces: Incoming EDI documents are automatically posted to the ERP system, while outgoing documents are converted from the ERP system to EDI format and sent. This requires consideration not only of technical aspects, but also of business logic, validations and special cases. This is the only way to avoid media discontinuity and achieve a fully automated process. 

How we support you with EDI projects!  

We accompany you from analysis to implementation to operation of complete EDI solutions – with a special focus on integration into Microsoft Dynamics 365 Finance & Supply Chain Management.  

1. Analysis & strategy development: 

We start by mapping the existing system landscape, current business processes and business partner requirements. This information is used to develop an integration strategy that takes short- and long-term goals into account. 

2. Technical implementation: 

We create the necessary data mappings, set up converters and secure communication channels, and seamlessly integrate the EDI system into the ERP. Special attention is paid to automated error checks, escalation mechanisms and monitoring that immediately detects malfunctions. 

3. Operation & further development: 

Even after go-live, we remain your active partner. Changes to formats, partner requirements or regulatory specifications are reliably implemented. In addition, we offer training, support and managed services to keep EDI processes stable in the long term. 

Practical example: Greater efficiency through automated ordering 

processes 

A medium-sized supplier in the mechanical engineering sector received orders from over 30 different partners – all with slightly different formats. Manual entry into the ERP system regularly led to delays and errors.  

An EDI solution that automatically recognises incoming orders, converts them into the internal format and creates them in the ERP system greatly simplifies this process. At the same time, an order confirmation is generated and sent back to the partner. The result: 80% less processing time, significantly fewer errors and a marked increase in customer satisfaction. 

EDI as a strategic competitive advantage 

EDI integration is much more than a technical project – it is a decisive step towards process automation, increased efficiency and competitiveness. Companies that invest in a stable EDI infrastructure at an early stage benefit not only from lower costs, but also from a better position in the market.  

Do you want to accelerate your business processes and eliminate media breaks? Contact us for a no-obligation EDI audit and find out how we can make your processes future-proof.