Question

Write a short note on EDI?

Answer 1

1. The Electronic Data Interchange (EDI) is the exchange of business documents between one trade partner and another electronically.
2. It is transferred through a dedicated channel or through the Internet in a predefined format without much human intervention.
3. It is used to transfer documents such as delivery notes, invoices, purchase orders, advance ship notice, functional acknowledgements etc.
4. These documents are transferred directly from the computer of the issuing company to that of the receiving company, with great time saving and avoiding many errors of traditional “on paper” communications.