A lot of organizations that are part of a supply chain are using EDI. Here is a quick primer on EDI, and why it should be a part of your long-term IT strategy from the experts.

Electronic data interchange (EDI) is a common term used to refer to the unambiguous exchange of data between two trading partners. EDI involves the electronic interchange of business information in a machine supported format as opposed to the use of paper. The business entities involved- that is from the supplier side and the buyer end, are referred to as trading partners.

The evolution of EDI technology has greatly revolutionized the ways businesses operate today. Besides allowing businesses to transact through computer networks and fast document transfers, EDI systems reduce administrative costs and minimize errors associated with business transactions. For efficiency, every business needs a system that reduces complexity in business operations, EDI serves this purpose.

Why implement EDI? Above and beyond administrative benefits, from a financial perspective, there are impressive reasons for implementing EDI in business. With EDI many businesses across the globe have recorded a total reduction in their order costs, many businesses have shown that EDI provides a clear return on investment.

There are a lot of benefits in implementing EDI, with a good EDI service bureau you get a complete solution for nearly every business retail or supplier in the modern marketplace.