What is EDI?
Electronic Data Interchange (EDI) is the electronic exchange of structured data via standardized message formats from one application to another with minimum manual intervention. An EDI System sends data from an internal system within seconds to the system of a trading partner.
Every day tons of paper documents like Orders, Invoices, Item Catalogues, Market Data etc. are captured manually and exchanged using traditional methods (Mail, Fax, e-mail).These traditional methods of communications (manual creation, printing, enveloping, sending via mail, and manual capturing at the recipient) offer enormous potential for improvements. In these traditional ways, the information passes many interfaces and people, going from company A to company B. Looking at this process in detail, you can identify that the exchange of unstructured data is creating lots of manual efforts and is also very risky and error-prone.
A piece of software – called EDI Converter – converts the data from the internal application into a standardized message format, so that it can be sent to Trading Partners. Inbound messages in standardized formats are converted by the EDI Converter into the Inhouse format and processed by the internal application. Small or medium sized companies can communicate with any business partner in this way as well. By automating the information exchange, manual exchange or creation processes are avoided, reducing time and costs