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What is EDI? Electronic Data Interchange (EDI)

What is Electronic Data Interchange?

What is EDI? EDI stands for Electronic Data Interchange and loosely defined, EDI is the structured transmission of electronic data such as purchase orders, invoices and shipping notices between organizations. More simply, it ensures that Company A’s systems can talk to Company B’s systems, and nothing will be lost in translation. The most common use case for this is when EDI compliance is required by a trading partner for a new supplier entering the market, or expanding their distribution channels.

Every day at B2BGateway, we enable thousands of trading partner relationships to exchange documents. Some trading partners you may recognize are Tesco, Wal-Mart, Amazon.com and Target. Electronic Data Interchange is not an out of the box solution. There are standards which need to be followed such as ANSIx12 UN/EDIFACT, Tradacoms, Eancom and Odette. There are also protocols which are set in place such as a VAN or Value Added Network, FTP and AS2. These standards and protocols must be followed in order to successfully exchange documents between our clients and trading partners.

Electronic Data Interchange saves you time and streamlines your business, in turn saving you money. It eliminates data entry errors and chargebacks and increases your efficiency and speed. There are large cost savings on labor, an excellent return on investments, it’s environmentally friendly by reducing paper transactions, there are improved tracking capabilities, supply chain management, and it reduces stationary and postal charges.

If you would like to see a demonstration video of how B2BGateway.Net’s EDI solutions work for a specific accounting package, please don’t hesitate to call your local office or send an email to Sales@B2BGateway.Net. For additional information, please view our brief video. Thank you.

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