EDI briefly explained

EDI stands for "Electronic Data Interchange" and is therefore almost self-explanatory.

When software systems communicate

However, the correspondents here are two software systems and the messages that are transmitted include orders. This exchange of information is automated. In addition to time, errors are also saved, which are made when, for example. bills entered manually into the system. In addition to customers, the exchange with suppliers is also particularly obligatory. Especially for larger companies, the EDI capability of suppliers is necessary.

EDI defined

Electronic Data Interchange, better known as EDI, is the process by which structured business documents are transferred between companies, in a standardised, digital format. These documents include orders, invoices, delivery notes or payment notices. EDI enables companies to speed up their processes and reduce the error-proneness that can occur with manual data entry.

Especially for manufacturing companies

Especially in manufacturing companies, EDI has long been an integral part of the workflow. For example, if certain parts of a production are delivered, the system can determine where and how the part will be further processed by scanning it upon delivery. This means that the goods do not have to be stored temporarily until they are registered in the ERP system, but can be assembled straight away. This saves time, storage space and thus also money. EDI is also already being used in state institutions. For example in the project MAGPIE, the electronic tax return.
EDI is thus definitely a pioneer of Industry 4.0 and has also found its place in widespread use (e.g. e-invoices).

Standards in the EDI area

Various EDI standards exist for efficient communication between various companies and ERP systems. Among them, UN/EDIFACT (United Nations Electronic Data Interchange for Administration, Commerce, and Transport), ANSI ASC X12 (American National Standards Institute Accredited Standards Committee X12) and ODETTE (Organisation for Data Exchange by Tele Transmission in Europe) are the most prominent. These standards define how business documents must be structured and formatted to ensure problem-free data exchange.

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