EDI (Electronic Data Interchange)

Electronic Data Interchange (EDI) is Computer to Computer exchange of business documents in Standard Electronic Format between business partners.

Examples for Business Documents

EDI replaces mails ,fax and paper documents. Even Mail is Electronic Message. its need people to involve to attach documents. EDI reducing to involve people in the process.

Without EDI  vs EDI

Exchange of purchase Orders Without EDI

• ·         The inventory system automatically notifies the buyer to place an order or after querying the inventory system, the buyer determines that an order needs to be created
• ·         The buyer enters data onto the screen of a purchasing system to create the PO, prints and mails it
• ·         After several days, the vendor receives the PO and manually enters it into the sales order system
• ·         The vendor prints an invoice and encloses it with the shipment and/or sends it separately by mail
• ·         The buyer manually enters the invoice into the Accounts Payable system

The exchange of paper documents can add a week to the process. If there are errors caused by manual data entry, the time can be greatly increased.

Exchange of purchase Orders With EDI

• ·         The buyer's procurement system, which utilizes EDI software, automatically generates and sends an EDI-formatted PO when inventory reaches the critical level
• ·         Within minutes the vendor’s sales order system, utilizing EDI software, receives the EDI PO, notifies the shipping department to ship the goods and generates an EDI invoice to be transmitted directly to the buyer’s accounts payable system

The EDI process can be completed within hours.

With EDI  We are reducing the Human involvement and no paper.

Benefits of Electronic Data Interchange

• ·         Cost Saving
• ·         Speed and Accuracy
• ·         Efficiency