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What is EDI?

  • August 12, 2019
  • 11:26 AM
  • Ashley Christian
EDI-blogImg

What is EDI? It stands for Electronic Data Interchange and it refers to the electronic interchange of documents between businesses. The documents could be purchase orders, invoices, inventory levels, and shipping notices. This interchange is far more efficient and less time consuming than exchanging paper documents. With paper documents it would take more than a week to transfer. With EDI there are less data entry errors that could occur. Since EDI replaces manual processing with automated transfers. 

Some benefits of EDI: 

Time saving and speed improvements: Incoming orders are created automatically.

Accuracy and elimination of manual errors: Ensures that the information accessed and received is not only accurate but all the requirements are met. 

Security: EDI is only available to authorized users. There are confirmations to make sure that both parties receive the documents. 

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