What is EDI (Electronic Data Interchange)?
Here, we discuss about what is Electronic Data Interchange and its benefits in detail as follows.
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What is EDI (Electronic Data Interchange)?
- EDI is source of E-commerce. It was developed long back in 1960s to accelerate the movement of documents related to shipment and transportation.
- Means EDI is "Exchange of Business Documents by the medium of computer". EDI is considered as the safe system to send business documents like order, invoice and shipping notice.
- The International Data Exchange Association defines EDI as follows- "Electronic Data Interchange is the electronic transfer from one computer to another computer of processable data using agreed standard to structure the data".
- There is big difference between EDI and Internet. EDI is more useful than just a network. VAN (Value Added Network) is also a network but it is a limited circle (only for merchants doing transaction in limited circle) not available at every place like Internet.
- Now, with the changing time there is not a major difference between Internet and EDI, due to Internet security and protocols used in it, so that the use of new EDI with the Internet media is increased.
- With the use of EDI possible human errors can be avoided. Time is saved and work can be easily and speedily.
Advantages of EDI system:
EDI system helps an organisation in different ways. So that business organisatio get the benefits as below.
- Saving as stationary.
- Process becomes very easy.
- Reduced time for placing the order to receiving goods.
- Data entry and documents can be created accurately.
- Transactions becomes faster.
- Increased inventory supply and claim processing information for customers.
- Details of goods are not available to unauthorised person, so that privacy can be maintained.
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What is EDI?
Electronic Data Interchange
Reduced Inventory Cost
Decreased Errors
Increased Accuracy
Enhanced Visibility
EDI - Electronic Data Interchange
Kinnari
Tech writer at NewsandStory