Electronic Data Interchange (EDI) enables businesses to exchange documents electronically in a standardized format. A common application involves a retailer sending a purchase order to a supplier digitally, eliminating the need for paper documents and manual data entry.
The importance of EDI lies in its ability to streamline business processes, reduce errors, and accelerate transaction cycles. Historically, EDI provided a competitive advantage by improving efficiency. The benefits extended to cost savings through reduced paper usage, faster order processing, and improved data accuracy.
