What is a key benefit of electronic data interchange (EDI) for businesses?

Faster processing of business documents is a key benefit of electronic data interchange (EDI) for businesses. EDI streamlines the communication process between organizations by allowing them to exchange business documents such as purchase orders, invoices, and shipping notices electronically, rather than relying on traditional paper methods. This digital format significantly reduces the time needed for document processing, as EDI eliminates the delays associated with printing, mailing, and manually entering data from paper documents. By automating these transactions, businesses can improve efficiency, reduce errors, and enhance overall productivity, which leads to quicker response times and better service delivery to customers and suppliers.

In contrast, increased manual data entry, enhanced physical paper usage, and reduction in automated systems do not align with the purpose or benefits of EDI. Instead, EDI aims to reduce manual processes and dependence on paper, facilitating a more streamlined and efficient workflow.