What is EDI? Electronic Data Interchange

EDI 101: The Basics and the Business Benefits for Retailers, Grocers, Vendors, Distributors, 3PLs and Others

What is EDI, how does EDI work and why do companies within the retail supply chain industry use it? Explore the benefits of electronic data interchange (EDI) for your business, discover industry specific EDI programs or browse types of EDI documents. 

What is EDI?

EDI is an abbreviation for electronic data interchange.

Using EDI, companies send information digitally from one business system to another, using a standardized format. Some of the types of business systems to which EDI can connect include e-commerce solutions, ERP, WMS, CMS, accounting software and more.

EDI replaces order processes, transactions and communications that were done with paper or fax in the past. It’s an important component for automation in business processes.

With EDI, you can exchange digital information and transactions with other businesses for greater accuracy and speed of communication. For example, purchase orders, invoices, advanced ship notices and other documents can be digitally transmitted via EDI.

What is an EDI program?

An EDI program is technology that syncs with tens, hundreds or even thousands of other company’s business processes and rules. All trading partners have different business rules for required EDI documents, EDI testing, connection methods and other requirements. EDI can readily be outsourced to a third party, often called EDI services or EDI providers.

To get more insights on selecting the right EDI program, as well as a complete list of questions to us for evaluation, download:
Evaluating Your EDI Options: Seven Building Blocks of Full-Service EDI.

Looking for an EDI program for your business?

Click on your business type below to see how electronic data interchange and EDI automation could benefit your company. You can also take a look to see how other businesses are implementing EDI programs within their companies.

Achieve EDI compliance with your trading partners

“Spencer’s wanted to create an environment for all of our domestic and international vendors to adopt EDI quickly. SPS Commerce helped us to achieve extremely high EDI compliance with our suppliers. Today more than 96% of all our orders are processed via EDI.”

Ann Arena, Director of Merchandise Management Systems, Spencer’s

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