Electronic Data Interchange (EDI)
Electronic communication method

Electronic Data Interchange (EDI) is an electronic communication method that provides standards for c via any electronic means.

Many business documents can be exchanged using EDI, but the two most common are purchase orders and invoices. At a minimum, EDI replaces the mail preparation and handling associated with traditional business communication. However, the real power of EDI is that it standardizes the information communicated in business documents, which makes possible a “paperless” exchange.

Faster transactions support reduction in inventory levels, better use of warehouse space, fewer out-of-stock occurrences and lower freight costs through fewer emergency expedites.

Highlightss:

  • Much less labor time is required
  • Fewer errors occur because computer systems process the documents rather than processing by hand
  • Business transactions flow faster.

 

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