What is EDI?
EDI stands for Electronic Data Interchange. EDI is the secure, automated exchange of electronic documents, such as purchase orders, invoices and delivery notes, between businesses or trading partners using a standardised format that allows different computer systems to communicate with each other.
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There are many efficiency and cost saving benefits of EDI for businesses of all sizes, operating in diverse sectors including retail, food, logistics, distribution, construction, manufacturing and many more.
Further information on EDI can be found in the following FAQโs, which may be particularly useful if you are just starting to trade via EDI or alternatively if you are looking to change EDI providers.
In terms ofย how EDI works, there are three main steps in the Electronic Data Interchange (EDI) process โ preparation and organisation of data, translation to the agreed EDI format, and the transmission of the EDI documents.
EDI is for anyย business that exchanges business documentsย with other businesses as part of their trading relationships.
There are a few things to think through whenย adopting EDI, depending on the demands of your business needs. Transaction volume, resources and support are all important factors of consideration when choosing the right solution.
Using EDI can transform the fortunes of businesses, large and small, withย benefitsย including reduced costs and improved cash flow to name just a few. EDI is a game changer for many businesses.
Aย Value Added Networkย โ or VAN โ is a secure private network which acts as an intermediary to enable EDI connectivity between trading partners and other VANs.
EDI integrationย is the electronic communication of business messages, such as orders and invoices, credit notes and ASNโs, internally between your own EDI system and your own back office accounts, warehouse or ERP systems, removing the need for manual re-keying of information. Businesses can useย EDI integration toolsย to manage their EDI activity from their business system and remove manual rekeying processes from their organization.
Anย EDI mailboxย is a file storage area within a computer which can be uniquely identified from connected mailboxes and VANs in other locations, and whereย EDI messagesย are consolidated and stored for retrieval by a vendor or supplier.
Anย EDI hubย is usually an organisation that buys multiple products and services and does so by sending orders electronically to its suppliers, and receiving electronic invoices in return.
EDI transactions, documents and files refer to the EDI messages that are exchanged between trading partners.
The TrueCommerce EDI managed service has been designed to meet the EDI requirements of small, emerging, mid-market and enterprise businesses, with an EDI solution that provides all of the key EDI elements required for a complete end-to-end EDI solution.
- A web-based EDI tool that translates your documents into the EDI format.
- EDI mapping to synchronise your system with your trading partnersโ systems.
- The EDI network that sends and receives electronic documents.
- Ongoing EDI support and maintenance services
A full range of support packages are available, tailored specifically for your requirements, to ensure that you maximise the benefits of TrueCommerce EDI.
For further informationย downloadย the TrueCommerceย โWhat is EDI?โ datasheetย orย access the recording of our webinar on the topic ofย โWhat is EDI?โ.
Key Takeaways
- EDI is the electronic exchange of business documents, automating processes and eliminating manual entry.
- EDI streamlines the exchange of orders, invoices, and more, reducing reliance on paper and manual processes.
- EDI is widely used across sectors like retail, manufacturing, and wholesale, optimizing business processes.