EDI Glossary
EDI stands for Electronic Data Interchange, a method of transporting all types of information, such as purchase orders, invoices, payments and even graphics, to another party electronically. EDI technology was introduced by Value Added Networks (VANs) in the 1970's as an alternative to modem banks, and essentially replaces paper-based communications with electronic equivalents. Since EDI is based on a standard developed by the American National Standards Institute (ANSI), it enables all businesses to share a common language.
The main purpose of EDI is to reduce the amount of data capture and transcription. Utilizing EDI results in decreased errors, less time spent on exception-handling, and fewer data-caused delays in the business process. Areas such as inventory management transport and distribution, administration and cash management all benefit from EDI.
Direct EDI can make your company EDI compliant without the hassle of installing or maintaining software. A computer with an internet connection is the only requirement to sign up for the
Direct EDI Web-Based System.
