Electronic data interchange

Electronic data interchange (EDI) is the computer-to-computer exchange of structured business documents in standardized electronic formats between organizations. It replaces or supplements paper-based business documents such as purchase orders, invoices, shipping notices, and payment advice, allowing them to be exchanged and processed automatically between computer systems.

EDI relies on standardized document formats that are independent of particular communication technologies. Major standards include UN/EDIFACT, ANSI ASC X12, GS1 EDI, TRADACOMS, ODETTE, and HL7. EDI is used across a wide range of industries. EDI documents can be transmitted using a variety of communication protocols, including Internet-based protocols, either directly between trading partners or through value-added networks.

By reducing paper handling and manual data entry, EDI can reduce costs and improve the speed and accuracy of business transactions, although implementation may require significant changes to existing business processes and information systems.