Electronic Data Interchange (EDI) allows computer-to-computer communication, data exchange, and electronic communication between parties using different networks or computer systems. EDI unification is the only method that allows users and systems to communicate efficiently and can meet most of their needs.
E-commerce uses electronic data interchange. For example, business trading partners that need to exchange data or business documents can use EDI to transfer files faster and manipulate data electronically.
EDI has many benefits and advantages. It can help reduce administrative workload, improve information flow and business processes, increase service speed, delivery and profit, and provide efficient information exchange that can lower costs.
Trading partners are required to ensure compliance to maximize the use of EDI. This has been an ideal way for companies to trade, buy and sell. Three major steps are required to fully experience EDI.
- Mapping is essential for the transformation of messages
- Translating is necessary to extract and process data in a standard EDI format for sending and receiving.
- Use the appropriate communication protocol
These three main processes are involved in the exchange of EDI data. They can be done using EDI software, a cloud-based EDI platform, or a web-based EDI program. One can also outsource with an EDI provider.
There are many other EDI vendors and providers that offer software and consulting. Regardless of whom a business turns to, it is important to choose someone trustworthy and who can provide support for either a business-to-business (B2B) or application-to-application (A2A) integration.