What is EDI Technology?

Written by: Stephen Case on April 24, 2014

What is EDI technology

EDI technology or Electronic Data Interchange is the standard used to exchange business documents and information electronically, from one computer to another. It is commonly used by businesses to communicate and send business documents, such as invoices, purchase orders and bills of lading, to and from their business partners, trading relations and customers.

The use of the EDI technology standard provides a platform for commercial communications between two or more companies. It establishes the entire data interchange process, including the software used, the transmission procedure, the message flow and the document format. EDI generally describes the overall electronic communication activity.

EDI (Electronic Data Interchange) technology can be implemented using any approach agreed upon by the data sender and receiver, which includes various modern technologies , like E-mail, FTP, AS1, AS2, HTTP and others.

Benefits of EDI Technology

Using EDI in processing business document for your company provides tremendous benefits for your company. The following are examples of what EDI can offer:

Reduced Operational Cost

EDI eliminates the use of document handling and other manual processes, which will reduce labor cost and will save money used for buying materials, like paper and ink.

Improved Data Accuracy

EDI improves data accuracy by eliminating the redundancy of manually encoding data.

Enhanced Data Security

EDI enhances data security by using multiple data encryption methods that ensure the safety and reliability of business information and data. It can also integrate higher levels of security measure to guarantee the security of critical documents.

Greater Data Accessibility

EDI offers better data accessibility to management and staff. Data are stored electronically, which can be access instantly to provide employees with information that can be used to make crucial business decisions.

Faster Business Transactions

Data are sent and received electronically, saving precious time and resources for your company, your business partners and your customers.

Higher Business Efficiency

EDI facilitates the sharing of important business information, such as product inventory status, sales data and demand forecast with you and your suppliers, creating a more efficient inventory and business management progression.

To learn more about what EDI Technology is or find out how EDI Associates can help you with your EDI Solution, Call Us at 503-608-4334.