Electronic Data Interchange
Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents between companies. EDI proves to be fast, reliable and a cost saving business practice that can reduce your companies carbon footprint.
In EDI, information is organized according to a standard format (ASC X12) published by the American National Standards Institute (ANSI). International EDI standards are known as EDIFACT standards. Each year these standards are reviewed and updated to accommodate new business and ensure accuracy. Versions of these standards are published by The Data Interchange Standards Association (DISA). Typically new versions are adopted by Hubs every few years.
The process of using EDI is very straight forward, a standard document (agreed upon by both parties,) is translated into a specific format and sent (or received) via a secure communication (data transport) method. The data is broken into small segments ie: Ship To - Name and Address or Product Identifiers depending on the type of business you are involved with. X12 covers all industries with approximately 500 different document types.