MFT Gateway is a hosted Software as a Service (SaaS) solution that enables file exchange over the AS2 or SFTP protocol, without the need to install or maintain.
EDI
How Manufacturers Can Reduce Operational Costs with EDI Automation
Discover how EDI automation cuts manufacturing costs by reducing errors and speeding processes.
Rusiri Samarakoon
Published: 19 Jun 2025
With the manufacturing industry more competitive than ever, operational efficiency is no longer optional—it’s essential. From procurement to shipping, every delay, manual error, or paper-based process adds cost and complexity. Enter EDI automation—a proven solution that helps manufacturers eliminate inefficiencies, reduce errors, and drive down operational costs.
In this blog, we’ll break down how EDI (Electronic Data Interchange) automation delivers measurable cost savings across the manufacturing workflow.
What is EDI Automation
EDI automation involves the digital exchange of business documents such as purchase order (850), invoices (810), and shipping notices (856) between systems without human intervention. Instead of manually entering data, EDI enables machine-to-machine communication using standardized formats, such as X12 or EDIFACT.
Key ways to reduce operational costs
1. Eliminate manual data entry
Manual entry of orders, invoices, or shipping information is not only time-consuming—it’s error-prone. With EDI, data flows directly between systems, reducing the risk of costly mistakes like duplicate orders, incorrect quantities, or billing discrepancies.
2. Lower labor costs
Automating data exchange reduces reliance on clerical staff for routine tasks. Instead, teams can focus on high-value activities like strategic sourcing, production planning and customer service.
3. Improved inventory management
Real-time updates from EDI documents like the 856 (Advance Ship Notice) and 940 (Warehouse Shipping Order) help manufacturers maintain accurate inventory levels. This reduces overstocking, stockouts, and costly expedited shipping.
4. Faster order processing
Automated EDI transactions accelerate order cycles. Manufacturers can process more orders in less time, improve cash flow with faster invoicing, and reduce delays that impact production timelines.
5. Fewer chargebacks and penalties
Large retailers and OEMs often impose fines for late, incorrect, or non-compliant documents. EDI ensures documents are sent accurately and on time, helping manufacturers avoid these penalties.
6. Lower paper and printing costs
EDI replaces paper-based processes with digital transactions, reducing costs associated with printing, mailing, and document storage—while also supporting your sustainability goals.
Secure and Scalable with AS2
For manufacturers exchanging sensitive data with trading partners, protocols like AS2 ensure secure, encrypted transmission. This adds an extra layer of data integrity and compliance—especially in regulated industries.
Ready to cut costs with EDI
Implementing EDI automation isn’t just a tech upgrade—it’s a strategic move toward operational excellence. Manufacturers that invest in EDI position themselves to grow faster, adapt quicker, and serve customers better—all while keeping costs under control.
EDI Generator
If you’re looking for a cloud-based EDI solution with a secure AS2 connection, our EDI Generator has you covered. Our platform enables you to receive EDI documents, read or print them, create shipments and invoices, and send the generated EDI documents back over AS2.
Looking to automate EDI for your manufacturing operation? Contact us or explore our EDI solutions to learn more.
Rusiri is a Digital Marketing Manager at Aayu Technologies with over 10 years of experience in the digital marketing industry. She is skilled in planning, managing, and scaling various performance-based digital activities. She loves to learn new things and has a passion for creativity.
Talk to an EDI Expert
Stay Compliant. Stay Connected. Powered by AS2.
Join hundreds of organizations already taking full control of their B2B AS2 communications with our trusted solutions. Contact us today to tailor a solution that fits your specific AS2 EDI needs.
Request a demo and take a live look at all the features of our AS2 EDI solutions.
Get answers to your questions and explore customizations that we can offer tailored specifically for you.
Get to know the dedicated deployment option available for your specific use cases.
Related Articles
View All BlogsExplore our product stack
Try before you buy with a 30-day Free Trial
No commitment, all value. Try the AS2 Solution Risk-Free and discover how our solutions can transform your business workflows. No credit card required.
Driving Innovation, Simplifying Connections.
EDI via AS2
30-day Free Trial
Secure and Compliant
