Cut costs and save time with EDI in B2B commerce

Find out how EDI works and why this tool can become a driving force in B2B business to improve the efficiency and accuracy of customer interaction. EDI saves time and money and creates a competitive advantage to reach new milestones. Talk to us today to learn how Contentstack can help transform your business processes.
Highlights
You’ll learn about:
Understanding EDI B2B commerce:
EDI or Electronic Data Interchange, transfers business documents in a standard electronic format.
Benefits:
- Removes paper-based processes, reducing errors and speeding up transactions.
- Reduces costs associated with printing, storage and postage.
- Enhances efficiency, positioning your businesses better in the e-commerce market.
Challenges:
- Scaling EDI for international operations is challenging
- Requires investment in the right EDI solution and IT support
- Necessitates security measures
To transform your business operations, start using EDI in your business operations.
Keep reading to learn more!
In B2B digital commerce, outdated technology, solutions and even manual business processes are not acceptable. Relying only on an old-school system of reaching and attracting customers makes reaching your audience challenging. This is why many business-to-business (B2B) commerce companies consider electronic data interchange (EDI).
But, will EDI replace B2B commerce and will it be the right option for their business? EDI and B2B commerce are different solutions to solving different types of business problems. So, does that mean if EDI worked for your competitor, it will work for you as well? Yes or no—it depends on the problem you want to solve
Let's explore everything about EDI and understand the benefits and challenges of using EDI in B2B commerce.
What is EDI in B2B commerce?
Electronic data interchange (EDI) is a B2B commerce method that focuses on the computer-to-computer exchange of different business documents, like invoices and purchase orders, in a standard electronic format. EDI connects your communication channels, helping you exchange information between customers and business partners.
Using EDI, your systems digitally receive documents from your system, helping customers view invoices, exchange orders and other documents in the format they want. Industries that use EDI include retail, banking, finance, manufacturing, civil engineering and construction industries, technologies and services industries.
Let’s understand EDI in B2B commerce with an example:
If company A buys a headless content management system (CMS) from Contentstack, both companies will create shareable documents. Company A prepares a purchase order to send to Contentstack and Contentstack creates a sales order and invoice in return. When employees create purchase orders, sales orders and invoices, mistakes are likely to happen, but when computers create the document, the chances of errors are negligible.
Computers can talk to each other in a suitable format or architecture, so they rely on their confidence in EDI.
EDI vs B2B e-commerce
Aspect | EDI | B2B E-commerce |
Definition | Electronic exchange of business documents in a standard format between trading partners. | Online commercial transactions are conducted over web platforms. |
Communication | Directly between businesses through a secure, standardized protocol. | Through web-based platforms accessible to multiple users. |
Data format | Standardized (e.g., ANSI X12, EDIFACT) | Varied (e.g., XML, JSON, HTML) |
Speed and efficiency | High speed and efficiency due to automation. | Depends on web infrastructure; can be slower than EDI. |
Implementation complexity | Requires specialized software and expertise. | Generally easier with user-friendly e-commerce platforms. |
Security | Highly secure with encryption and compliance standards. | Security depends on the platform and can vary widely. |
Scalability | Scalable but can be complex with large networks. | Easily scalable with modern e-commerce solutions. |
Order size | Handles large and recurring orders. | Ad-hoc ordering and inventory accounting and management have more complex processes |
Benefits of using EDI in B2B commerce
Increased efficiency
Electronic commerce removes the need for paper-based documents, manual data entry and errors, improving your business’s efficiency.
Case study: How did Contentstack help Wavin reduce its order processing time?
Wavin, traditionally slow to adopt digital transformation in the infrastructure and construction industries, seized the opportunity to innovate amidst the COVID-19 pandemic by launching an online webshop for plastic face masks. Partnering with Valtech, Wavin moved to a MACH-based, headless CMS approach with Contentstack. They drastically reduced order processing time by integrating e-commerce with Contentstack’s headless CMS and accelerated customer acquisition by streamlining commerce operations.
After using Contentstack, Stephanie Devine, Global Product Owner for E-commerce at Wavin, said:
“We have been able to add technology into the existing relationships quite easily to improve the service delivered, as well as make Wavin more attractive in new markets.”
Read the complete case study here.
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Improved accuracy
EDI reduces the risk of errors associated with manual data entry, enhancing data accuracy.
Enhanced customer service
With EDI, you can process your invoices, shipping notices, and orders faster. As a result, your businesses provide better customer service and improved customer satisfaction.
Increased business cycle
As EDI standardizes documents in a computer-friendly format, you and existing customers no longer have to wait for days to receive postal services or complete transactions. With EDI, you improve your business's order-to-cash cycle.
Cost saving
Storing paperwork and records as files is unproductive and expensive. EDI is cost-effective since it reduces the expenses related to printing documents, storage, and even postage, which causes monetary loss to the company.
Competitive advantage
Businesses that employ EDI are much better positioned to compete in e-commerce markets because they operate more efficiently. You respond to customer demands and reduce costs.
Challenges of using electronic data interchange
Scaling your EDI
While standard EDIs bring numerous benefits, it’s challenging for companies to scale their business. Search for a scalable EDI solution if you cater to an international audience. Know about the EDI solution’s scalable nature. Otherwise, you might face issues later on.
Cost of EDI
Implementing EDI contributes to significant cost savings because it improves your business cycle. It can be very costly if you choose the wrong EDI. You might need a dedicated IT team to maintain it.
Data security concerns
Protecting sensitive data exchanged using EDI channels requires security measures. This includes implementing encryption protocols and regular security audits to prevent data integrity breaches and ensure compliance.
Integration challenges
Making sure the new software works with existing systems like content management systems (CMS), enterprise resource portals (ERP) and CRM may be challenging. This requires:
- Custom development
- Extensive testing
- Collaboration with IT team
How does EDI work?
1. Prepare your documents
An internal application or ERP system prepares business documents like purchase orders, invoices and shipping notices. The software formats these documents into an internal data structure for easy interpretation.
2. Convert your data to EDI format
Next, convert your data into a standard EDI format, like ANSI X12 or EDIFACT. With conversion, the sender and receiver can understand the data.
3. Transmit your EDI documents
EDI documents are securely sent to new trading partners through AS2, FTP, VAN or web services, helping you meet customer requirements and security policies.
4. Receive and process documents
The receiving partner's EDI system:
- Captures and interprets the data
- Converts it from the EDI format into a compatible format
You can easily manage documents in the recipient's ERP or management system. This helps you make quick business decisions without needing to manually input data.
Why do EDI-focused companies use B2B integration in their sales and marketing strategies?
Integrating the EDI and B2B digital commerce process is a boon for your businesses, including your sales and marketing strategies. Through automation, sales and marketing activities no longer require manual, time-consuming tasks.
B2B e-commerce solutions come with data analytics features and customer relation management (CRM) tools, giving you insights into the customer’s behavior, trends and other buying habits. With these tools, you can segment the market, develop a targeted selling campaign and interact with customers more easily. When you combine the traditional EDI with the dynamic, customer-focused features of B2B digital commerce, you:
- React swiftly to market trends
- Predict customer demand,
- See an increase in sales and market presence
- Sync up with other business systems like ERP and supply chain management (SCM)
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FAQs
What is EDI in B2B?
EDI in B2B is the way of electronically sharing business data with partners through pre-defined templates.
What is EDI in commerce?
EDI in commerce is the exchange of business messages that conform to pre-established message formats between partners. You no longer have to manage critical business documents such as purchase orders, invoices, shipping notices, and payment confirmations manually.
Is B2B the same as EDI?
No, the two are distinct. B2B implies a business undertaking with another business enterprise, while EDI is the technology used to organize real-time interaction and data exchanges in business-to-business transactions.
Why does EDI still have a big role in B2B e-commerce?
B2B EDI integration remains crucial in B2B digital commerce because it automates workflows, reduces errors and enhances communication.
Learn more
To taste success in digital commerce, you must provide B2B customers with a seamless digital experience—that’s possible with a B2B EDI integration. EDI is already a widely used and popular go-to for many B2B transactions. You achieve sustainable growth, streamline operations and enhance customer satisfaction using EDI integration solutions.
Take the next step towards optimizing your B2B processes—talk to us today.
About Contentstack
The Contentstack team comprises highly skilled professionals specializing in product marketing, customer acquisition and retention, and digital marketing strategy. With extensive experience holding senior positions at renowned technology companies across Fortune 500, mid-size, and start-up sectors, our team offers impactful solutions based on diverse backgrounds and extensive industry knowledge.
Contentstack is on a mission to deliver the world’s best digital experiences through a fusion of cutting-edge content management, customer data, personalization, and AI technology. Iconic brands, such as AirFrance KLM, ASICS, Burberry, Mattel, Mitsubishi, and Walmart, depend on the platform to rise above the noise in today's crowded digital markets and gain their competitive edge.
In January 2025, Contentstack proudly secured its first-ever position as a Visionary in the 2025 Gartner® Magic Quadrant™ for Digital Experience Platforms (DXP). Further solidifying its prominent standing, Contentstack was recognized as a Leader in the Forrester Research, Inc. March 2025 report, “The Forrester Wave™: Content Management Systems (CMS), Q1 2025.” Contentstack was the only pure headless provider named as a Leader in the report, which evaluated 13 top CMS providers on 19 criteria for current offering and strategy.
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