What is Electronic Data Interchange (EDI)?

What does EDI stand for?

Electronic Data intercHange (EDI) is the Digital transmission of dependent inFormation by means of agreed message requirements from one pc machine to another with out human intervention. It is a Device for exchanging commercial enterprise documents with external entities.

EDI refers to a circle of relatives of standards and does not specify transmission Methods, which can be Freely agreed upon with the aid of the trading companions.

The extensive adoption of EDI within the enterprise global enables efficiency and price Discount. EDI is used in such diverse enterprise-to-Business Relationships as:

• Interchanges among fitness care Carriers and insurers
• Travel and inn bookings
• Education
• Supply chain control
• Administration
• Tax rePorting

What Does Electronic Data Interchange Mean?

EDI is a series of messages between buying and selling partners, both of which may additionally Function the originator or recipient. The messages are transmitted and acquired without human intervention. Each message is composed in keePing with a standardized Syntax from a sequence of standardized Records factors. It is this standardization that Makes message assembling, diSASsembling and processing with the aid of the Computer viable.

EDI is considered to be a technical illustration of a commercial enterprise verbal exchange among two entities, both Internal or outside. The EDI standards had been designed to be unbiased of communication and Software technology. EDI may be transmitted the usage of any technique agreed to by way of the sender and recipient.

There are 4 principal uNits of EDI standards:

• The UN/EDIFACT Standard: The most effective international and UN-advocated fashionable
• The US Standard ANSI ASC X12 (X12):The foremost general in North America
• The TRADACOM Standard: The fundamental general within the U.K. Retail enterprise
• The ODETTE Standard: The trendy used within the European car industry

XML and EDI are complementary technology. ASC X12 is working diligently to decorate communications around the arena through participating at the electronic enterprise XML (ebXML) initiative, a worldwide effort to develop a common Framework for XML commercial enterprise messages.

Value-Added Networks are the interMediate agencies presenting steady and reliable transmission and garage of EDI messages. Web-based EDI (webEDI) lets in a organization to interact with its suppliers with out imposing a complex EDI infrastructure. WebEDI offerings simplest require an Internet connection; as a result, EDI has eMerge as on hand and lower priced to even small- and medium-sized organizations.

EDI has been criticized for its high set-up and VAN expenses in addition to complicated standards. However, its blessings include:

• Time: Reduced cycle time and more desirable Customer Support
• Cost: Enhanced inventory management and minimized paper use and Storage
• Quality: Improved commercial enterprise Relationships and accuracy
• Profit: Reduced expenses, accelerated turnover and elevated cash glide
• Efficiency: Increased productiveness