EDI - All You Need Know About Electronic Data Interchange

1. Article2: Datatrans-inc.com EDI - All You Need Know About Electronic Data Interchange As a business owner, you must have often come across the word EDI or e-commerce these days and must be wondering what it means? To put it simply e-commerce is nothing but an exchange of information about the trading of goods, services and money from one computer to other. Few examples of it are buying a widget over internet, receiving a paycheck electronically or paying a bill. In the past data was exchanged by businesses through fax machines or delivery mails. With the advancement of technology now most of the business owners have opted for electronic data interchange (EDI) for transferring documents between companies. EDI system is more efficient and quicker way of transferring data from one location to another. Imagine you are an owner of the company that is repeating the same transactions thousands of times in a day. This is where EDI comes into the scene. EDI is message standard that can exchange information with a computer application to another without much human intervention. It is done with special EDI software via email using the internet or through customized connections. EDI goes beyond just buying goods or submitting invoices. By using EDI software a company can get information about inventory levels from its suppliers, receive the status of an order; and transfer funds electronically with automatic notification that an invoice was paid. These are just a few amongst the many forms of automated transactions that an EDI system supports. You simply have to install an EDI software program on your computer and you can easily make your transactions with other computers using the same EDI system across the globe. All you need is a computer and internet connection for transferring the date from one location to another. The EDI software program has special security features to prevent leakage of date and ensure that it reaches the right recipient. While installing EDI system on your computer just ensure that it puts a priority on security. EDI systems offer great benefits to its users by providing efficient means to exchange information that can reduce cost. To name a few like reduced workloads, streamline the flow of information and business processes, increased speed of service and delivery, increased productivity resulting in increased profits With all these advantages the EDI system also has some drawbacks the biggest being that EDI systems are applicable only if the trading partner with whom you want to interact also uses the same method. In the case of new companies trying to reach more established businesses, this can be a big problem. They may not be on the same level due to budget constraints. Inspire of few drawbacks EDI has proved to be a powerful tool that supports modern day’s e-commerce. Companies across the world are using EDI system’s adaptability and flexibility to communicate with one another. With the web offering low connectivity costs and simpler software, the doors of EDI have opened to smaller companies as well.

2. Article2: Datatrans-inc.com ABOUT THE AUTHOR Gabriel Martin has written many articles and blogs about the EDI, e-commerce and data management solutions. He recommends DataTrans Solutions, Inc. for providing quality, timely, and accurate EDI and B2B outsourcing solutions for to its customers.