1. What is EDI?

EDI (Electronic Data Interchange) is a method of exchanging business data electronically between companies in a standardized format. Instead of handling information manually, EDI allows documents like purchase orders and invoices to be transferred quickly and accurately, reducing errors.

2. Differences Between EDI and Traditional Methods

• Traditional (paper-based): The ordering process takes 3-5 days, requiring printing, mailing, and manual data entry, which increases errors.
• EDI: Processes orders in less than an hour, automatically transmitting and confirming transactions between systems, saving time and costs.
  
  
  
  

3. Benefits of EDI

• Cost savings: Reduces expenses related to paperwork, labor, and data entry errors.
• Faster processing: Speeds up transactions and minimizes waiting time.
• Improved efficiency: Automates business processes, increasing competitiveness.
• Global connectivity: Widely used in B2B e-commerce, logistics, and retail industries.
  
  
  
  
  
  

4. Applications of EDI

• Logistics and supply chain: Supports managing shipping documents, customs declarations, and reduces manual tasks.
• Retail: Big C applies EDI to optimize order exchanges with suppliers, replacing inefficient fax and portal systems.
  
  

5. Common EDI Standards

• UN/EDIFACT: Widely used in Europe and Asia.
• ANSI ASC X12: Popular in North America.
• Other standards: TRADACOMS (UK), VDA (European automotive), EBICS (France), etc.
  
  
  
  
  
  

Conclusion

EDI is a crucial technology that helps businesses optimize operations, increase efficiency, and reduce costs. Its adoption is becoming more common, especially in logistics, retail, and e-commerce.