AI is a big topic right now, and many businesses are trying to figure out if, when, and how they should use it. One common way AI is being used today is for predictive analytics. However, implementing AI isn’t cheap and it requires expensive data collection, model development, technology, and skilled experts. For a mid-sized company, building a custom AI model can cost anywhere from $150,000 to $600,000, not including ongoing maintenance.

For AI to work well, it needs a strong foundation of real-time data sharing between customers and suppliers. Even if AI isn’t in your plans, switching to Electronic Data Interchange (EDI) can save money while giving you the data needed to strengthen your supply chain. EDI helps reduce costs in several key areas.

1. Lower Transaction Costs – Companies can save $1-$3 per document or even more compared to manual processes. The higher the volume of documents (purchase orders, invoices, etc.) the quicker the savings add up.
2. Faster Transaction Processing – EDI reduces order-to-cash cycle times by up to 60% – 80% leading to quicker invoicing and payments.
3. Error Reduction – Automating data entry reduces errors. Error correction can cost anywhere from $50 – $200 per error depending on the complexity.
4. Inventory Management – Real-time data improves demand planning and reduces stockouts or overstock situations.
5. Compliance and Penalty Reduction – Many large retailers require EDI compliance to avoid chargebacks or penalties which can be substantial
6. IT and Operational Efficiencies – Onboarding new suppliers becomes faster and cheaper as the system scales.

By reducing errors, speeding up payments, and improving inventory management, a mid-sized company could save over $200,000–$300,000 annually. Don’t miss out on these cost-saving opportunities! Innovate can help you calculate the ROI of onboarding your customers and suppliers. Once you see the savings, we’ll guide you through the process seamlessly.

Click here to learn more about Innovate’s Services or email Innovate E-Commerceinfo@innovateec.com