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Electronic Data Interchange

Electronic Data Interchange (EDI) is defined as the exchange of business information between computer systems using an agreed upon international standard. EDI allows for fast and accurate data exchange by automatically translating and transferring information from one company's computer to another in an EDI format. This immediate transfer of error-free, easy to read information increases accuracy and saves time, especially for international trade where customs regulations are involved. EDI is commonly used by organizations with large supply chains and those with high international involvement to streamline operations and share information automatically without manual paperwork.

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17 views

Electronic Data Interchange

Electronic Data Interchange (EDI) is defined as the exchange of business information between computer systems using an agreed upon international standard. EDI allows for fast and accurate data exchange by automatically translating and transferring information from one company's computer to another in an EDI format. This immediate transfer of error-free, easy to read information increases accuracy and saves time, especially for international trade where customs regulations are involved. EDI is commonly used by organizations with large supply chains and those with high international involvement to streamline operations and share information automatically without manual paperwork.

Uploaded by

naxilo
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Electronic Data Interchange

Electronic Data Interchange (EDI) is deIined as the exchange oI business


inIormation Irom one computer system to another using a standard technology
which is agreed internationally.




nput of nformation Output of nformation

The inIormation is transIerred automatically Irom the company`s computer aIter
translating to EDI Iormat, where the decoder will decode and receive it as
inIormation. As this happens so Iast, the user can use the inIormation immediately.

* EDI represents replace on text and email
* Fast and accurate data interchange and exchange
* Error Iree
* Easy to read
* Operating convenience
* Cost eIIectiveness

EDI increases the accuracy and also saves a lot oI time when it comes to
international trade, where custom regulations are involved. Any business document
can be sent via Edi and all they require is a system that can decode EDI on the
other end.

Globally used EDI coding systems are TRADACOMS and EDIFACT.








In the international environment, EDI system is embraced by two types:

rganisations with large customer and supplier chain
&$NE$$ &NT &$NE$$ &NT A
ED ED

Organisations such as Toyota, IKEA and TESCO belong to this group. EDI is
responsible Ior a smoother operation by helping the company to share the
inIormation between warehouses, distribution points, branches and with all the
other suppliers.

rganisations with high international involvement

Organisations with high international involvement such as Philips, DuPont, Ford,
etc. will use EDI with their customers, so that the automatic ordering Irom
suppliers is done without any manual paperwork.

Also, banking sector, insurance sector and Ireight Iorwarding and transportation
industry (DHL, FedEx, and UPS) have inter-linked their database system so that
documentation is easy with custom and other related hubs.

However, the protection oI data when it is in the web and the quality and security
oI the product is lower on the internet and e-commerce.

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