EDI stands for electronic data interchange and is defined as computer-to-computer exchange of business information in a standard and structured format. Organizations are moving to electronic data interchange to streamline and improve operational efficiency of business processes and communications by exchanging data electronically.
Businesses adopt EDI to enhance efficiency, improve communication and accuracy of data exchanged, strengthen partnerships, and drive down costs. EDI eliminates the need to re-key information, reduces error-prone data entry and speeds up the process of exchanging business documents with customers and other trading partners. As seen in the following example, common EDI transactions such as (EDI 850) Purchase Order and (EDI 810) Invoice, EDI simplifies and streamlines the entire transaction process.
infographic by: datatrans-inc.com