Electronic Data Interchange (EDI)

What is Electronic Data Interchange (EDI)?

Operations

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

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MOQ

What is MOQ?

MOQ stands for Minimum Order Quantity, which refers to the smallest quantity of goods or products that a supplier or manufacturer is willing to sell to a buyer in a single order.

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Cart Abandonment Rate

What is Cart Abandonment Rate?

The shopping cart abandonment rate is a metric that reviews the percentage of online shoppers who add an item to a cart or bag without buying those items.

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Comma Separated Values (CSV)

What is Comma Separated Values (CSV)?

Comma Separated Values (CSV) is a file format commonly used for storing and exchanging tabular data between different software applications.