EDI stands for Electronic Data Interchange
Electronic Data Interchange is used to exchange business documents in electronic format—purchase orders, invoices, ASNs, BOL and more—between companies that do business with each other, called trading partners.
Electronic Date Interchange documents are exchanged from one company to another, from computer to computer. EDI replaces emails, phone calls and paper-based exchanges like faxes and mail, eliminating the manual data entry which can be prone to errors and slow down processes.
EDI format standards were put in place to allow computers to understand the information being sent back and forth between trading partners. Numerous standards are being used including EDIFACT, ANSI X12, TRADACOMS, Odette, and ebXML. And for each standard, there are many different versions.
In fact, when two businesses decide to exchange EDI documents, they must agree on the specific EDI standard and version to communicate. Businesses use an EDI translator software to translate the EDI format so the information can be used by the companies’ internal applications, business system or ERP.
Electronic Data Interchange technology is used to solve a variety of industry-specific issues. From Retail and Healthcare to the Automotive industry, EDI has evolved over the years to address complicated business process challenges helping organizations meet industry, government and customer mandated requirements. EDI has never been more accessible for businesses of all sizes with flexible deployment options, managed services, and easy-to-use supplier web portals.
Is your customer asking you to implement EDI? Have you heard of EDI but aren’t sure how it would benefit your business? Radley has over 40 years’ experience implementing EDI in multiple industries for customers around the world. Contact us for your free consultation with a Product Specialist to learn how to make EDI work for you.