What is EDI?

Electronic Data Interchange (EDI) is the computer-to-computer exchange of structured information, by agreed message standards, from one computer application to another by electronic means and with a minimum of human intervention. In common usage, EDI is understood to mean specific interchange methods agreed upon by national or international standards body for the transfer of business transaction data, with one typical application being the automated purchase of goods and services.

Companies looking to implement EDI are doing so to reduce paper and communication costs and to achieve faster communication with partners. One question often asked is why choose a standard or EDI in particular. While it is true that a single connection with a particular customer could be implemented faster and simpler without learning and embracing any specific standard as the trading community begins to grow the implementation and supports costs of a standardized processes show their benefits. EDI is one of the oldest business to business communication standards and had proven itself in many industries and business situations.