Electronic data transmission makes it unnecessary to copy data from one paper-based document to another or to manually have to type in data from a paper-based document. Manual data entry is always a possible source of errors in the document management process. Under paper-based document management manual data entry has to be performed at least once, when transferring data onto a computer. The use of EDI brings a significant improvement in the reliability of data, since electronic data generally come from databases and were checked properly before being entered there.
If several partners are involved in the management of electronic documents, with each partner adding data to those, then none of them can change the data recorded previously by others.
The electronic transmission of EDI documents between partners speeds up significantly. This speed helps shorten planning periods, which allows more accurate scheduling of goods and cash flow.