Paperless trading is done by Electronic Data Interchange (EDI). EDI is a very important Part of Modern Trade and Logistics. Evolution of data elements that can be transmitted electronically to interchange trading information such as invoice etc. have been part of this development.
Advantage of Paperless Trading :-
------ EDI saves on clerical costs by avoiding re-entering of data. It allows timely and error free transaction information be passed from one computer to another.
----- By improving information management and data exchange between organizations, EDI promotes introduction of new business strategies such as just in time manufacturing based on zero stock principle.
----- Providing error free information to the right place at the right time; thus quicker response to orders, shortening of delivery cycle.
----- Reducing stocks levels and thus increasing availability of working capital.
----- Quicker and safer processing of invoice brings speedy payments with improving cash flow .
----- EDI speeds up border control and other official interventions such as costumes clearance of goods .
----- EDI through computer oriented controls, improves the efficiency of controlling authorities.
----- Improves costumer service.
The main and very useful help from EDI is that it helps the uniform goods flow when goods are passing from border or carried in any other transit nation which is neither origin nor destination for that good. It simplifies all the customs processes and allow transit the goods without any disturbance. It also simplifies the documentary process, banking and payment solutions.