How does EDI work?

Your company's computer system may already serve as a repository for data related to business functions such as purchasing, marketing, inventory management, logistics, and accounting. EDI extends the value of the investment you've made in business application software. Creating, sending, receiving, and processing EDI business documents can be automated and integrated with your existing internal computer applications.

EDI extracts information from your applications and transmits paperless, computer-readable business documents via telephone lines and other telecommunications devices. At the receiving end, the data can be fed directly into the trading partner's computer system, where it can be automatically processed and interfaced with the receiver's internal applications. All of this is accomplished in minutes, without the rekeying and paper shuffling of manual document processing.

Why use EDI?

By using EDI, your company can send business documents directly from your internal computer applications to your trading partner's computer system - without human intervention. EDI can thus minimize staff involvement and reduce the delays and errors that accompany the manual processing of business documents. By simplifying and streamlining business procedures, EDI can help your organization control costs, increase efficiency, and improve customer service levels. At the same time, EDI may save your company money through decreased safety-stock inventory levels and diminished administrative requirements.

What is EDI ?

What is EDI?

EDI (electronic data interchange) is the direct, application-to-application transmission of business documents such as purchase orders, invoices, and remittance advice. By itself, EDI does not create any new processes or strategies, it simply speeds the existing ones. EDI compresses the timeline from initial order to shipment to final payment by sending actionable information without the need for rekeying at any step along the way.

If you're a retailer, EDI helps you respond to consumer demand faster. Reorders can be sent automatically in response to sales. If you're a manufacturer, EDI gets you the order faster and speeds the manufacturing process. At every stage of the supply chain, EDI is a tool that eliminates waste, delay and human error. It should be apparent why more and more business customers are favoring suppliers who can do business with them electronically.