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    What Is EDI

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    Gaurav Kumar
    EDI is the electronic exchange of business documents between computer systems using a standardized format. It allows companies to communicate information needed for business transactions like orders, confirmations, and invoices in an automated way. The key aspects of EDI are the electronic transmission of structured data between trading partners using agreed standards to facilitate processes like ordering and billing with minimal manual intervention.

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    What Is EDI

    Uploaded by

    Gaurav Kumar
    780 views8 pages
    EDI is the electronic exchange of business documents between computer systems using a standardized format. It allows companies to communicate information needed for business transactions like orders, confirmations, and invoices in an automated way. The key aspects of EDI are the electronic transmission of structured data between trading partners using agreed standards to facilitate processes like ordering and billing with minimal manual intervention.

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    What is EDI

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    EDI is the electronic exchange of business documents between computer systems using a standardized format. It allows companies to communicate information needed for business transactions like orders, confirmations, and invoices in an automated way. The key aspects of EDI are the electronic transmission of structured data between trading partners using agreed standards to facilitate processes like ordering and billing with minimal manual intervention.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    780 views8 pages

    What Is EDI

    Uploaded by

    Gaurav Kumar
    EDI is the electronic exchange of business documents between computer systems using a standardized format. It allows companies to communicate information needed for business transactions like orders, confirmations, and invoices in an automated way. The key aspects of EDI are the electronic transmission of structured data between trading partners using agreed standards to facilitate processes like ordering and billing with minimal manual intervention.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    What is EDI

    Electronic Data Interchange (EDI) is defined as


    the inter-process communication (computer
    application to computer application) of
    business information in a standardized
    electronic form. In short, EDI communicates
    information pertinent for business transaction
    between the computer systems of companies,
    government organizations, small businesses,
    and banks.
     
    What is EDI

    • EDI refers to the exchange of data between


    one computer and another on a pre-
    defined structure where both have agreed
    upon the same message standard. This
    electronic communication helps in
    business transactions such as order,
    confirmation, shipping notices and so on
    between organizations.
    • The relationship is usually developed
    between a vendor and a customer. EDI
    implies computer to computer transaction
    into vendor databases and ordering
    systems. The EDI system co-ordinates
    transaction, initiates deliveries and
    generates invoices. Data is exchanged
    between different companies using a
    What is EDI
     However, due to the different approaches
    in the development and implementation of
    EDI, there is no consensus on definition of
    EDI. Some of the prevailing definitions are
    as follows.
    •  EDI is the transmission, in a standard
    syntax, of unambiguous information of
    business or strategic significance between
    computers of independent organizations
    (The Accredited Standards Committee for
    EDI of the American National Standards
    Institute)
    • EDI is the interchange of standard
    formatted data between computer
    application systems of trading partners
    with minimal manual intervention(UNI /
    EDIFACT Training Guide)
    What is EDI

    • EDI is the electronic transfer, from computer


    to computer, of commercial and
    administrative data using an agreed
    standard to structure an EDI
    message(Article 2.1 of the European
    Model EDI agreement)
    • EDI is the interchange is the electronic
    transfer from one computer to another of
    computer processable data using an
    agreed standard to structure the
    data(International Data Exchange
    Association, The EDI handbook: Trading in
    the 1990s)
    •  
    What is EDI
    • WHAT ARE THE ESSENTIAL ELEMENTS
    OF EDI?
     

    • Some of the essential elements of EDI are


    the use of an electronic transmission
    medium instead of physical storage such
    as magnetic tapes, and disks. The
    message is well structured and formatted.
    The exchange of documents from the
    sender to receiver speeds up. EDI enables
    direct communication between
    applications. It depends on a
    sophisticated information technology
    infrastructure that includes data
    processing, data management,
    networking capabilities that ensure
    efficient and reliable data transmission
    What is EDI
    • HOW DOES EDI BENEFIT INDUSTRY?
    • There are numerous advantages of using EDI. Some of
    them are increased business opportunities in
    various sectors and reduction of workforce
    requirements.
    • There is a quick data transfer.
    • Reduced paper-based systems
    • Improved problem resolution and customer service
    • Less time is wasted on exception handling.
    • It also saves time in unnecessary re-capture of data.
    • Expanded customer / supplier base(Many suppliers are
    forced to switch over to EDI by large manufacturers
    • It is also beneficial in areas such as inventory
    management, transportation and distribution,
    administration and cash management due to
    automatic existing process leading to cost
    reduction, improved speed and better quality of
    services.
    • EDI is being used by Federal Express, Eastman Kodak,
    What is EDI
    • How does EDI work?
    • EDI provides the electronic equivalent of
    common business documents—request for
    quotes, purchase orders and invoices—
    which are then transmitted electronically
    between computers of trading partners.
    Electronic documents are given
    standardized electronic format, as it is
    easy for everyone to correctly interpret
    information sent to them. Translation
    software is used by each partner to
    translate business data from ASCII
    (American Standard Code for Information
    Interchange) format or any other format
    to ANSI X12 form and vice versa.
    What is EDI
    • What’s the difference between e-
    commerce and EDI?
    • E-commerce and EDI differ. E-
    commerce is an aspect of doing
    electronic business, person to
    person interaction or collaboration,
    money transfer, data sharing and
    exchange, Web site merchant
    systems etc.
    • EDI is a subset of e-commerce. In
    EDI, users can exchange business
    information in a standardized

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