EDI Full Form is Electronic Data Interchange. It is a communication system in which data is transferred electronically from one computer to another computer. It does not require any human intervention, because there is no paperwork required in transferring data.
Nowadays EDI is most commonly used in B2B e-commerce. EDI transfers a lot of data, due to which the data is arranged in a bidirectional format.
- First of all, we prepare the document or data that needs to be transferred. Initially data is collected and organized.
- Then these documents are translated into EDI format by the translator software.
- When we translate documents into EDI format, the documents are ready to be exchanged. Then we connect with our business partner and exchange the documents. Documents are transferred via HTTP, HTTPS and FTP protocol communication methods.
- These documents remain in the recipient mailbox until they can view and process the documents from the mailbox.
Advantage Of EDI
- It takes very less time to transfer documents because the data is transferred in electronic form.
- Because the data entry is in the computer, there is very little scope for mistakes in it.
- It can easily exchange data, i.e technical complexity is reduced in it.
- In this, transfer of data takes place at a low cost.
- It does not have to do paperwork.
- In this data exchange is better and accuracy is high.