Electronic Data Interchange (EDI)

What is Electronic Data Interchange (EDI)?


Electronic Data Interchange (EDI) is a computer-to-computer communication method used by businesses to exchange electronic documents in a standardized format. EDI allows businesses to automate the exchange of information, such as purchase orders, invoices, and shipment notices, without the need for manual data entry or paper-based documents.

EDI uses a standardized format for electronic documents, which enables different computer systems to communicate with each other seamlessly. This format typically includes a set of data elements and codes that represent specific pieces of information, such as product codes, shipping addresses, and order quantities.

EDI can help businesses to streamline their operations and reduce costs by eliminating manual data entry and reducing errors. It also enables faster processing times and increased accuracy, which can help businesses to improve their supply chain management and customer service.

EDI is commonly used in industries such as manufacturing, retail, and healthcare, where the exchange of electronic documents is critical to business operations. While EDI was traditionally transmitted over private networks, it can now be transmitted over the internet using secure protocols and encryption.

More Terms

You Might Also Like

This is some text inside of a div block.

Universal Product Code (UPC)

What is Universal Product Code (UPC)?

A Universal Product Code (UPC) is a graphic and numerical code printed on retail packages and is often referred to as a barcode.

This is some text inside of a div block.

Brick and Mortar

What is Brick and Mortar?

Brick and mortar refers to a physical retail store or business location, as opposed to an online or virtual presence.

This is some text inside of a div block.

Conversion Rate

What is Conversion Rate?

The conversion rate is the percentage of your total website traffic that purchases from your store.