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Ecommerce
Articles >> What is EDI
EDI: Short for Electronic Data Interchange, the transfer of data between different companies using networks , such as the Internet . As more and more companies get connected to the Internet, EDI is becoming increasingly important as an easy mechanism for companies to buy, sell, and trade information. ANSI has approved a set of EDI standards known as the X12 standard.
What is EDI?
Electronic Data Interchange (EDI) is the computer-to-computer exchange of business data in standard formats. In EDI, information is organized according to a specified format set by both parties, allowing a "hands-off" computer transaction that requires no human intervention or re-keying on either end. All information contained in an EDI transaction set is the same as on a conventionally printed document.
Organizations have adopted EDI for the same reasons they have embraced much of today's modern technology-enhanced efficiency and increased profits.
Benefits of EDI include:
  Reduced cycle time
Better inventory management
Increased productivity
Reduced costs
Improved accuracy
Improved business relationships
Enhanced customer service
Increased sales
Minimized paper use and storage
Increased cash flow
The standards are designed to work across industry and company boundaries. Changes and updates to the standards are made by consensus, reflecting the needs of the entire base of standards users, rather than those of a single organization or business sector. Today, more than 300,000 organizations use the 300+ EDI transaction sets to conduct business.
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Information last updated: 8th May 2006.
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