EDI: A Boon For The Communication System

1. Blog2: Datatrans-inc.com EDI: A Boon For The Communication System Communication system has always been the key to successful commerce. From telegraphs to telephones and now EDI! But the question is what is EDI? Electronic Data Interchange (EDI) helps in quick, accurate and reliable interchange of electronic data between the computer systems of organizations that are business partners. The computer systems exchange invoices. EDI provides accuracy and efficiency to the business. Without EDI, transferring data can be time consuming and inefficient. EDI increases speed and accuracy. It should always be done with a single EDI provider. There are four options for Electronic Data Interchange (EDI) clients to transmit electronic commerce data: Value Added Network (VAN) Third Party Service Provider Custom Internet Gateway Direct Connect to the CBSA One of these must be followed to transmit data through EDI. EDI is basically computer-to-computer interchange of formatted business transactions in a standard format. It is just like other devices such as fax machines, which allow you to send data publicly or in private communication links. EDI has its unique advantage that it automatically processes the data and transmits it. So, that excludes all the noise signals that come along. EDI is easily processed by the computer so that the exchange can be automated without any human interference. Pros of EDI include managing huge volumes of transactions, minimum- operating cost, it also eliminates delay and data entry errors. There are two processes in EDI, first is the outbound process and second is the inbound one. Electronic Data Interchange is implemented by EDI software that is available on the Internet or can be customized by a developer. EDI software increases profitability, helps to maximize efficiency and minimize errors.