• EDI stands for Electronic Data Interchange.
  • EDI has been in use since the 1960s and has evolved over time to support various communication protocols, data formats, and message standards.
  • EDI is an important tool for businesses that want to streamline their operations and improve their supply chain management.   


  • EDI refers to the electronic exchange of structured business documents between two or more trading partners using a standardized format that enables businesses to exchange information quickly and accurately, reducing errors and processing time.

Characteristics Features

  • EDI is typically used by businesses to exchange documents such as purchase orders, invoices, shipping notices, and other similar transactional data/documents.
  • EDI allows for a faster, more accurate, and more efficient exchange of information between trading partners, leading to reduced costs and increased productivity.
  • EDI can be integrated into a company’s existing software systems, such as Enterprise Resource Planning (ERP) systems, to streamline business processes and improve efficiency.
  • EDI is particularly useful for businesses that engage in high-volume transactions with multiple partners.
  • EDI allows businesses to send and receive information electronically, eliminating the need for paper-based documents and manual data entry.
  • EDI automates the exchange of data, businesses can reduce costs, improve accuracy, and increase productivity.

Advantages of EDI

There are several advantages to using EDI for electronic data interchange between trading partners:-

  1. Increased efficiency:

    • EDI eliminates the need for manual data entry, reducing errors and speeding up the processing of documents. This can lead to faster and more accurate transactions, saving time and resources for both parties.

  2. Cost savings:

    • By reducing manual processes and errors, EDI can lead to cost savings for businesses. Additionally, EDI can reduce or eliminate the need for paper-based processes, such as printing and mailing documents, which can save on postage and storage costs.

  3. Improved accuracy:

    • EDI eliminates the need for manual data entry, which can reduce errors caused by typos or other mistakes. This can lead to more accurate data and fewer disputes between trading partners.

  4. Increased visibility:

    • EDI provides real-time tracking and visibility into the status of documents, allowing businesses to quickly identify and address any issues or delays in the process.

  5. Increased productivity:

    • By automating processes and reducing errors, EDI can increase productivity and free up staff time for more valuable tasks.

  6. Improved customer service:

    • EDI can help businesses provide faster and more accurate responses to customer requests, improving customer satisfaction and loyalty.


Categories: E-Commerce


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