EDI Ordering vs. Traditional Methods: Which is Right for You?

When purchase orders are stuck in inboxes or manually entered from spreadsheets, growth slows down. Each manual step adds delays, errors, and frustrated customers. 

EDI ordering replaces this with automated, structured document flows directly into your ERP. It’s faster, more accurate, and scalable. But if you're considering EDI, it's probably because big box stores require it. The real question is: Is EDI integration worth the investment?

With EDI, companies experience faster processing, fewer errors, and better compliance. It can drive down operational costs and speed up your order-to-cash cycle, all while reducing the risk of costly mistakes.

However, the setup process can be costly and time-consuming, especially when using providers like SPS, which many retailers require. Should you stick to traditional methods, like email orders from smaller retailers, or take the plunge into EDI ordering to reach bigger stores and expand your business? 

In this guide, we’ll break down how EDI works, its pros and cons, and how solutions like OrderEase can simplify the process, ensuring your business scales without the typical headaches.

The Pain of Traditional EDI Software

Many businesses rely on EDI software that’s disconnected from their ERP systems, causing manual data entry, errors, and inefficiencies. Without proper integration, EDI transactions must be manually processed, resulting in delays and mistakes. Data doesn’t flow smoothly between systems, requiring extra work to reconcile discrepancies and update multiple platforms.

For businesses handling high volumes of orders, the lack of integration can create significant pain points. Customer service teams end up manually re-entering data, checking multiple inboxes, and reconciling discrepancies across systems, leading to wasted time, frustration, and errors.

What is EDI Ordering?

Definition of EDI

EDI is the direct, machine-to-machine exchange of documents, replacing manual methods like email, fax, or phone orders that require re-keying

In North America, the most popular standards are ANSI X12, and in the rest of the world, EDIFACT. In such frameworks, most of the EDI order flows are based on a few documents:

• 850 – Purchase Order
  
  
• 855 – Order Acknowledgment
  
  
• 856 – Advance Ship Notice (ASN)
  
  
• 810 – Invoice

Businesses exchange these documents using secure methods like AS2, SFTP, or VANs (Value-Added Networks), which are often required by large retailers and distributors.

These have the effect of enabling order processing with quicker, higher accuracy, with fewer errors,

Where EDI Delivers Business Value

EDI isn’t just a technical standard; it delivers measurable business impact. Companies using EDI consistently see:

• Faster order capture with fewer manual touches
  
  
• Reduced errors in pricing, quantities, and packaging
  
  
• Compliance  with retailer and distributor mandates

The advantages are indicated by GS1 and peer retailer surveys, including less manual labor, fewer entry charges, and shorter order-cash cycle times.

GS1, a global organization that sets standards for product identification and data exchange, helps businesses streamline their operations. By using identifiers like GTIN, GLN, and SSCC, companies improve supply chain visibility, enhance accuracy, and reduce errors across multiple systems and partners.

Although EDI is precise and fast, many companies still rely on email orders and spreadsheets due to legacy processes, a lack of integration, or resistance to adopting new technologies.

OrderEase brings all your disparate workflows into one streamlined process, ensuring a smooth integration with your ERP, WMS, or eCommerce systems. Depending on partner requirements, it supports connections via AS2, SFTP, VANs, or APIs. This means your documents flow directly into your operations, eliminating the need for manual data entry and reducing inefficiencies.

How EDI Differs from Traditional Ordering

Traditional ordering is people moving information between systems, reading emails, re-keying PDFs/CSVs, making calls, and filing attachments. EDI replaces those steps with system-to-system exchanges in pre-agreed formats, backed by confirmations and audit trails. The result: fewer touches, shorter cycle times, and consistent data.

Where Traditional Methods Fall Short

• Manual re-entry (PDFs/CSVs): Works at low volume, but doesn’t scale. It invites SKU, unit-of-measure, and price mismatches and depends on tribal knowledge.
  
  
• Phone & fax: Slow, hard to audit, and reliant on handwritten notes. Timestamps and ownership get lost, creating reconciliation work later.
  
  
• “Electronic” POs without EDI: Emailed spreadsheets or portal exports still need humans to ingest and validate. They lack standard envelopes, control numbers, and acknowledgments.

What EDI Adds

• Structure & validation: Orders arrive in standard formats. A 997 confirms receipt, and an 855 confirms whether the order is accepted or changed.
  
  
• End-to-end signals: Ship details flow via the 856 ASN; billing via the 810 invoice—creating a traceable chain instead of digging through email chains.
  
  

EDI delivers the structure and confirmations that traditional methods lack. But suppliers don’t live in an “EDI-only” world; orders also arrive by email, reps, and marketplaces. That’s where OrderEase goes further, unifying EDI and non-EDI orders into one queue.

OrderEase: The Complete Solution for EDI Ordering

When it comes to handling large volumes of orders, businesses need more than just a basic EDI system. OrderEase offers a comprehensive solution that not only automates the order process but also integrates seamlessly with your existing systems.

Whether you're managing inventory, shipments, or customer data, OrderEase simplifies and streamlines the entire workflow. Here's how:

• End-to-end automation: Manages the entire order lifecycle from processing to fulfillment, reducing manual intervention.
• Seamless integration: Connects effortlessly with your ERP, WMS, and eCommerce platforms for a unified workflow.
• Flexible connectivity: Works with various data transport methods like AS2, SFTP, VANs, and APIs to fit partner needs.
• Increased operational efficiency: Streamlines order processing, cutting down time spent on manual validation and data entry.
• Supports scalability: As your business grows, OrderEase adapts without requiring additional resources, ensuring smooth expansion.

Comparing EDI Ordering with Traditional Methods