EDI Editor

Electronic data interchange (EDI) is a method for transmitting data between different computer systems or computer networks. It is commonly used by organizations for activities especially related to e-commerce, such as sending orders to warehouses or tracking their order.

Electronic Data Interchange is basically a computer-to-computer exchange of routine business data between trading partners in standard data formats. This definition consists of 3 key concepts pertaining to EDI:

1. Computer-to-computer: EDI in its most efficient form flows first out of a sender’s computer system directly into a receiver’s computer system without any human interference; however, it is not always possible for EDI to flow in such a flawless manner.

2. Routing business data: EDI is used for creating routine business documents like Purchase Orders and Invoices. It is not used for creating non-routine business documents like complicated contracts or information meant for humans to read and analyze.

3. Standard data formats: A standard definition of the location and structure of the data is provided. We have to also understand that unstructured text is not EDI.

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