Electronic Data Interchange

Electronic data interchange is basically a process of computer to computer exchange of documents used by companies. Each organization uses flexibility provided by the standards in its own unique way according to the necessary business needs. Nowadays, EDI is being used by wide varieties of industries. Everybody knows that computer-to-computer data transfer is far comfortable than managing paper documents. Fast transactions leads to reduction in inventory, better utilization of warehouse space, low freight costs and many more. It has replaced the traditional system of mailing and faxing of paper documents. EDI uses specific record formats which are based on lots of wide standards.

There are lots of benefits of using Electronic Data Interchange Software as less labor time is needed. Paper purchase orders may take up-to 8-9 days by the time buyers prepare orders and suppliers ship it. Users may also save money and time with the use of electronic data interchange to submit their tax information. It is especially designed for businesses which are reporting huge number of authorities, outlets, schedules and leases. EDI relies on standard system which has been developed under ANSI guidelines. Chances of errors gets minimized as computer systems efficiently processes documents as compared to processing by hand. Whole business transactions flow in a better way.