Paper purchase orders and invoices once clogged every logistics office. Electronic data interchange is the structured electronic exchange of standard business documents between trading partners’ computer systems.

Common transaction sets cover orders, advance ship notices, invoices, and inventory reports. Standards such as ANSI X12 and EDIFACT define message formats so that different systems can interoperate. Translation software maps internal data to the external standard and back again.

EDI reduces manual keying errors, accelerates cycle times, and provides an audit trail. Implementation requires agreement on versions, codes, and communication protocols. Despite newer API-based approaches, EDI remains deeply embedded in retail, manufacturing, and transportation networks.

• Structured electronic exchange of business documents
• Uses standard formats such as X12 or EDIFACT
• Covers orders, shipments, invoices, and more
• Reduces errors and speeds partner transactions