Electronic Data
Interchange (EDI): can be formally defined as the transfer
of structured data, by agreed message standards, from one
computer system to another without human intervention.
This is not the normal electronic data transmission
such as email.
This is a different system devised to transmit data in a
very specific way.
EDI is the standard way in which large businesses
exchange business documents (invoices, purchase orders,
Request for Quotes, Advanced Ship Notices, bill of lading,
etc.) in a standard electronic format
with their
vendors/suppliers.
EDI allows
companies with different document standards and different
languages to receive, understand and transmit documents in
standard formats.
There are different EDI standards such as ANSI,
EDIFAC, TRADACOMS and XML.
Each standard also have different versions.
Hence, when two businesses decide to exchange EDI
documents, they must agree on the specific EDI standard and
version.
EDI is a
process that is provided as a service by 3rd
party vendors.
If you are required to use EDI as a requirement to become a
vendor/supplier to a major retailer you should find a
company that provide EDI as a cloud service ( and subscribe
to it) so that it minimizes your out of pocket up-front
cost.
Below is a list
directories that provide listings of companies that provides
EDI services.
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