What
is EDI?
EDI stands for Electronic Data Interchange and is the electronic
exchange of routine business transactions. Typical transactions
include such documents as purchase orders, invoices, advance
shipping notification, payments, etc.
Who uses EDI?
A lot of different industries are currently using EDI. For
example, most of the U.S. Government facilities have implemented
EDI in one fashion or another. Other business industries using
EDI range from manufacturing to retail.
What makes EDI work?
EDI allows several unrelated companies to communicate and
process business transactions electronically. EDI relies on
a standard system that supports many platforms. The EDI Standard
used in the United States is ANSI X12 and was developed under
the guidelines of the (ANSI) American National Standards Institute.
The ANSI committee ensures that everyone using a process such
as EDI follows the same rules and methods, making the program
nationally accessible. As a result, all businesses share a
common interchange language, which minimizes the need to reprogram
their internal data processing systems.
What is a Trading Partner?
A Trading Partner is anyone who trades business documents
with another party using ANSI X12 or EDIFACT standards.
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