Following on from my first blog, today I am going to talk about Electronic Data Interchange (EDI). As I have mentioned previously, EDI is an important trend in information systems. This blog will focus on the basics of EDI.
EDI can be defined as the ‘computer-to-computer change of business documents in a standard electronic format between business partners’ (http://www.edibasics.co.uk/what-is-edi/).
Exchanging business documents manually involves many people and lots of paper. Having people involved slows down the processing of the documents and also introduces errors:
EDI is a much simpler process because it cuts out many of these elements. No paper or people are involved in EDI. Due to this, EDI replaces post, fax and e-mail. EDI documents can flow straight through to the appropriate application on the receiver’s computer and processing can begin immediately making the transfer of documents much easier:
The most common business documents exchanged via EDI include:
• Purchase Orders
• Advanced Shipping Notices
• Customs Documents
• Inventory Documents
My next blog will focus on the benefit of EDI to business.