What is EDI?

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Q&A Pro › Category: eCommerce › What is EDI?
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Victoria Neira asked 5 years ago
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Dani Avitz Staff answered 5 years ago
EDI (=Electronic Data Interchange) is the digital exchange of documents between business partners in a standard electronic format. One essential advantage of EDI is that there are nor humans neither paper involved in a process. Consequently, the benefits of EDI include:
  • A decrease in lead time
  • The basis for Efficient Consumer Response (ECR)
  • Decreased costs due to process optimization
  • Shorter business cycles
  • Decreased administrative costs
  • Elimination of redundant manual data input
EDI Business documents include orders, invoices, shipping notices or inventory documents, among many more. There are several standards in use today including ANSI, EDIFACT, TRADACOMS, and ebXM standards. Therefore, it’s essential for businesses to find an agreement on the specific EDI standard when forming a relationship with another company and when necessary, to make use of an EDI translator.