electronic data interchange (EDI)

  

Definition

The predecessor to electronic commerce, EDI has been suitable only for large North American and European corporations and banks. Firms using EDI are interconnected through a global computer network, independent of internet although attempts are underway to integrate the two networks. It facilitates computer-to-computer exchange of electronic documents (such as purchase orders, advance shipment notices, and invoices) without human intervention or human readable (paper or electronic) documents. EDI eliminates manual re-keying of data, cuts order processing costs, increases data accuracy, improves cycle time, and makes just-in-time deliveries possible. Like internet it is a standards based system independent of the type of computer hardware and software employed.

Use this term in a sentence

  • The electronic data interchange was a vital stepping stone in electronically and digitally communicated and transmitting vital information to one another.

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  • There was a large amount of electronic data interchange to go through that day and I had to get started now.

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  • You should figure out a away to use the electronic data interchange to your advantage so that you can get more out of it.

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