What Is EDI (Electronic Data Interchange)?

EDI, or Electronic Data Interchange, enables the computer system from one company to “talk” to the computer system of another company and digitally exchange data.

Because the digital exchange of data is facilitated using computers, most, if not all of the associated business processes can be automated so they occur with little or no manual data entry. This enables companies to electronically send and receive business documents like purchase orders and invoices using EDI transaction codes.

Learning about EDI is important for having a productive dialogue with customers that require it. While utilizing EDI maybe a result of a mandate by your customer, it can certainly bring significant benefits to your operations. Watch the video to learn more about it's history and how it works to help your business grow as you expand your distribution base.


What Is EDI Video
What is Electronic Data
Interchange (EDI)?

Key Benefits of EDI:

  • Reduces or eliminates manual data entry errors
  • Streamlines transaction processing
  • Increases productivity without increasing staff

Four required components for Electronic Data Interchange:

A complete system for exchanging transactions electronically requires the following components, preferably from one vendor that can provide an end-to-end solution.

  • EDI software translates information from your accounting system into the EDI format
  • EDI mapping allows your accounting system to sync with your customer’s system
  • EDI VAN - Transaction Network needed to send and receive transactions (supports AS1, AS2 and other connections)
  • Ongoing EDI support and maintenance services

Using the right EDI solution helps you improve your vendor scorecard with retailers. TrueCommerce EDI Solutions liberates businesses by connecting them with their greatest opportunities for growth with new customers, or trading partners. We make EDI painless by delivering easy-to-use, robust and affordable EDI solutions.

To learn more about electronic data interchange, Contact an EDI specialist today.

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