EDI stands for Electronic Data Interchange, a concept that enables the automated transfer of business documents between companies in an agreed digital format. This can include invoices, orders, delivery schedules, purchase orders, notifications, bills of lading, price catalogs, or other types of business documents.
EDI systems translate a company’s business documents into a standardized technical format before the documents are sent electronically to the recipient. When the recipient receives the documents, the information can be processed in other systems and in the correct format through the translation done within EDI.
In short, this allows companies to exchange information directly between their business systems without manual intervention.
