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Technology & Integration

Electronic Data Interchange (EDI)

Also known as: EDI

Electronic data interchange (EDI) is the computer-to-computer exchange of business documents, such as purchase orders and invoices, in a standard electronic format.

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EDI replaces paper and email documents with structured electronic messages that flow automatically between a buyer's and supplier's systems. Common documents include purchase orders, order acknowledgements, dispatch advices and invoices, all in agreed standard formats so each side's software can read them without manual entry.

By removing re-keying, EDI cuts errors, speeds transactions and lowers processing cost, which is why large buyers often require it of key suppliers. Newer web-based integrations and marketplace platforms offer similar automation without the traditional EDI setup, making system-to-system trading accessible to smaller suppliers too.

Frequently asked questions

What is electronic data interchange?
Electronic data interchange (EDI) is the automated computer-to-computer exchange of business documents like purchase orders and invoices in a standard format, removing manual re-keying between trading partners.
What are the benefits of EDI?
EDI reduces manual data entry and errors, speeds up transactions, lowers processing costs, and creates a reliable electronic trail between buyer and supplier systems.

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