Electronic Data Interchange (EDI)
EDI (Electronic Data Interchange) is the computer-to-computer exchange of business documents in a standard electronic format between business partners.
At its core, Electronic Data Interchange, or EDI, refers to the electronic exchange of business documents between organizations. Moreover, it facilitates the transfer of data in a structured format, making it easy to understand and process by both the sending and receiving systems. Thus, instead of relying on paper-based methods or manual data entry, Electronic Data Interchange enables a seamless flow of information between trading partners.
Furthermore, Electronic Data Interchange documents use standardized formats like X12 or EDIFACT for seamless reading and processing by computers on both ends of the transaction, enabling efficient information exchange and streamlined business processes.
Communication Protocols for Electronic Data Interchange:
- AS2 (Applicability Statement 2): Often used for high-value transactions like invoices and purchase orders.
- OFTP2 (Odette File Transfer Protocol 2): Commonly used for exchanging shipping manifests and time-sensitive documents.
- FTP (File Transfer Protocol): Suitable for businesses with lower security or volume needs.
- SFTP (Secure File Transfer Protocol): A good option for businesses needing more security than FTP, but without the high-volume requirements of OFTP2.
- HTTPS (Hypertext Transfer Protocol Secure): Not as secure as AS2 but a suitable choice for businesses without the need for AS2’s high-level security.