An Introduction To EDI

Getting started with EDI can seem like a daunting proposition. At first sight it can be difficult, highly technical, and even obscure. Once you dig a little deeper, however, you quickly see that EDI can be a great deal of help to small and midsized businesses that are seeking to automate their order processing and invoicing systems. From reduced workforce costs to increased accuracy, EDI can deliver the promise of E-Commerce to small and mid-sized businesses around the world. With this free E-Book you will get an in-depth introduction to EDI along with a primer on getting the most out of your EDI investment.

Electronic Data Interchange (EDI) is the computer-to-computer movement of routine business data in an approved standard format (e.g., ANSI ASC X12, EDIFACT or TRADACOMS). Companies that decide to trade business data with each other using EDI are called trading partners. The trading partners must decide which transaction sets (EDI business documents) will be exchanged electronically, what information will be included (i.e., what segments and data elements within the transaction set should be sent and received), and what method of communications will be used (e.g. asynchronous communications via a Value Added Network or bisynchronous direct communications).

The EDI Standard data format can be thought of as a common language that allows all companies to communicate with each other. That is, if all companies were able to accept or send data not only in their company's internal format(s), but also in an EDI standard format (ANSI ASC X12, EDIFACT or TRADACOMS), then all companies would have one data format in common for trading EDI mail.