What is electronic data interchange (EDI)?
EDI, which stands for electronic data interchange, is the intercompany communication of business documents in a standard format. The simple definition of EDI is a standard electronic format that replaces paper-based documents such as purchase orders or invoices. By automating paper-based transactions, organizations can save time and eliminate costly errors caused by manual processing.
In EDI transactions, information moves directly from a computer application in one organization to a computer application in another. EDI standards define the location and order of information in a document format. With this automated capability, data can be shared rapidly instead of over the hours, days or weeks required when using paper documents or other methods.
Today, industries use EDI integration to share a range of document types — from purchase orders to invoices to requests for quotations to loan applications and more. In most instances, these organizations are trading partners that exchange goods and services frequently as part of their supply chains and business-to-business (B2B) networks.
DOCUMENT EXCHANGE WITHOUT EDI
DOCUMENT EXCHANGE WITH EDI
Benefits of EDI with Oliokraft Networks
- EDI standardizes the information communicated in business documents – improving document accuracy and enabling the paperless exchange.
- EDI eliminates the expenses of paper, printing, and postage, and manual data entry.
- EDI expedites your business cycles – enabling you to exchange business documents in minutes instead of the days or weeks of turnaround time via a postal service.
- EDI empowers real-time visibility into transaction status: promoting quicker decision-making and enhanced responsiveness to customer demands.
- EDI reduces the time it takes your business to exchange invoices, purchase orders, advanced shipping noticies, and any other business documents. This exchange is computer to computer instead of manual!
EDI is simple and easy with Oliokraft Networks
EDI is easy with Oliokraft Networks. With over 30 years of experience, our EDI solutions have grown into the industry standard.
Our dedicated team of EDI experts know how to deliver world-class, affordable, and reliable EDI solutions – because we’ve done just that for thousands of happy clients. You’re in good hands.
Which business documents are exchanged with EDI?
The most common business documents exchanged with EDI are Invoices (EDI 810), Purchase orders (EDI 850), and Advanced Shipping Notices (EDI 856). However, many other EDI Documents are used today such as routing instructions (EDI 754), inventory inquiries (EDI 846), and Product Activity Reports (EDI 852). Our experienced team of EDI experts have experience working with ANY document!
What is an EDI standard format?
Since EDI Documents are processed by computers, a standard format must be used to ensure that all computer systems can read, parse and understand the documents.
What EDI standards are used today?
The most common and well-known EDI standards are EDIFACT and ANSI. Additionally, for each standard there are many different versions (such as ANSI 5010 or EDIFACT version D12). When two businesses want to exchange EDI Documents, they must settle on the specific EDI standard and version. Our team has experience with virtually ANY EDI standard and version.
Who exchanges EDI Documents?
The exchange of EDI Documents is usually between two businesses (known as trading or business partners). For example, Walmart may buy goods from Joe’s Best Shoes. Walmart sends purchase orders to Joe’s Best Shoes computer system. Joe’s Best Shoes may then send invoices and advanced shipping notices to Walmart’s computer system. Walmart and Joe’s Best Shoes are EDI business partners. Our EDI solutions enable you to do business with ANY trading partner!