NAGASA - What is EDI?

What is EDI?

Electronic data interchange is the electronic exchange of routine business transactions in a standardized computer-readable format. Here's how it works: machine readable information is transmitted from one company's computer to another company's computer ñ without human intervention beyond the initial data entry ñ and in a standardized format. This automated business transaction workflow between companies replaces traditional paper documents such as purchase orders, order confirmations. Invoices, and manifests with computer-readable transmissions of files containing the information communicated using these documents.

Standard EDI does not use fax, e-mail, or messaging, These are all technologies encompassed with electronic commerce, of which EDI is a component. The internet is starting to be used for EDI transactions. In some cases the EDI document is sent over the internet as an e-mail attachment, and in other cases using Extensible Markup Language (XML). Transmitting EDI using either of these approaches also requires special software at each end of the transmission.

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