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What is EDI

EDI Basics

What is EDI? EDI stands for Electronic Data Interchange. Companies that do business with each other are called trading partners. EDI is used to exchange business documents in electronic format between these partners. For example, these documents include purchase orders, invoices, ASNs, BOL and more.

Manual data entry and document exchange can be prone to errors and slow down processes. But through EDI, companies exchange electronic documents from computer to computer. As a result, companies replace emails, phone calls and paper-based exchanges like faxes. This makes their business processes more efficient. Also, it saves time and cost associated with manual data entry. 
 
EDI standard formats allow computers to understand the information sent between trading partners. For instance, many standards are being used today. These include EDIFACT, ANSI X12, TRADACOMS, Odette, and ebXML.
 

These standards are also called communications protocols. Also, there are several different versions for each standard. In fact, businesses must agree on the standard and version before exchanging EDI documents.

 
Businesses use an special software to translate the EDI format. Then the companies’ internal applications, business system or ERP uses that information.

What are the Benefits of EDI?

EDI translator software is used to solve a variety of industry-specific issues. For instance, from Retail and Healthcare to Automotive, EDI has evolved to address complicated challenges.

It helps companies meet industry, government and customer requirements. Plus, companies using EDI realize significant cost savings, faster order processing and increased customer satisfaction, over paper processing methods.

With flexible deployment options, managed services, and easy-to-use supplier web portals, solutions abound. Is your customer asking you to use EDI? Or have you heard of it but aren’t sure how it would benefit your business?

Radley has completed successful EDI implementations in many industries for customers around the world. Let us put our 40 years’ experience to work for you! Are you wondering ‘What is EDI?’ To learn more about how it can work for you, request a free consultation today.

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Continue reading about What is EDI and the benefits of Electronic Data Interchange (EDI) on Radley’s Blog

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