Understanding the Basics: What is Electronic Data Interchange (EDI)?

In today’s digital age, businesses are constantly looking for efficient and cost-effective ways to streamline their operations. Electronic Data Interchange (EDI) is a solution that has transformed the way companies exchange information. But what exactly is EDI?

EDI is the electronic interchange of business documents between trading partners in a standardized format. It enables businesses to send and receive data electronically, eliminating the need for paper-based transactions. By utilizing agreed-upon message standards, such as EDIFACT or ANSI X12, EDI facilitates the exchange of purchase orders, invoices, shipping notices, and other business documents seamlessly and securely.

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