HomeDefinitionsElectronic Data Interchange: Definition, Uses and Importance

Electronic Data Interchange: Definition, Uses and Importance

Automated exchange of data between heterogeneous information systems, respecting universally accepted rules which make it possible to structure the data into messages.

Electronic Data Interchange (EDI) is the generic term defining an electronic exchange of documents and information between a computer and another same type machine.

Indeed, EDI software allows documents to be sent directly to the desired application on the recipient’s computer, without any prior processing or human intervention. In other words, EDI replaces other means of exchange and communication such as emails, letters or faxes.

Thus, the processing of documents then becomes fully automated, playing a significant role in terms of information flow, costs and communication with the teams.

In addition, it significantly improves the speed of information processing thanks to the integration of an EDI engine. The documents exchanged via this engine are generally commercial documents. Such as invoices, purchase orders and many others.

Electronic data interchange (EDI) is a technique that replaces the physical exchange of documents between companies (orders, invoices, delivery notes, etc.) by exchanges.

According to a standardized format, between computers connected by specialized links or by a (private) value-added network (VAN). The data is structured according to international technical reference standards (eg Edifact).

For example, sending an order by fax and then entering it by an operator of the supplier company is replaced by the transmission of information which is routed to a computer of the supplier company capable of interpret the command.

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Mehmet is one of the administrator of Teknonel. As a software developer, he loves to share his knowledge in related topics. He is highly familiar with the editorial process from the inception of an article idea, through the iterative process, publishing, and performance analysis as well as product reviews.

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