EDI is defined as Electronic Data Interchange. It is used to transfer electronic documents from one computer system to another. EDI put back the faxing and mailing of paper documents. These EDI documents use specific computer record arrangements that are based on widely accepted standards. EDI is used in a many of the industries and it also provides many benefits. EDI transactions between companies flow faster and more consistently than paper documents.
The advantages of EDI is Computer-to-computer exchange of information is very less expensive than handling paper documents. Both the buyer’s and the supplier’s of EDI applications can edit and check the documents for any correction. EDI provides an easily accessible device for companies to buy, sell, and trade information. EDI saves money and time because transactions can be transmitted from one information system to another through a telecommunications network. There main disadvantages of EDI are that it can only work if everyone the company has transaction through using the same method.
