Electronic Data Interchanged

Electronic Data Interchange * Electronic data interchange (EDI) is the structured transmission of data between organizations by electronic means, which is used to transfer electronic documents or business data from one computer system to another computer system, i.e. from one trading partner to another trading partner without human intervention. It is more than mere e-mail; for instance, organizations might replace bills of lading and even cheques with appropriate EDI messages. It also refers specifically to a family of standards. * Electronic data interchange (EDI) is the software or system used by companies to exchange information, files and documents. EDI has replaced the fax machine and mailing list when it comes to information sharing. Using EDI, sharing of data is much quicker and cost effective. * The computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media.

Advantages of EDI * EDI provides cost savings by reducing paper and eliminating paper processing. * Time savings and eliminating repetition are other benefits from the reduction in paper processing. * Documents can be transferred more quickly and processing errors can be decreased allowing business to be done more efficiently. * More efficient processing will likely lead to improved customer service which will ultimately expand the customer base.

Disadvantages of EDI * Contrasted to XML, which is not strictly standardized, many consider EDI to have too many standards. * There are various standards bodies that have developed 'standard document formats' for EDI which can cause problems with cross compatibility. * These