What is EDI? Electronic Data Interchange Meaning

The largest retail network with pre-wired EDI connections for your business

What is EDI and why do companies within the retail supply chain industry use it? SPS Commerce is the largest retail network, with more than 115,000 retail supply chain partners to connect and collaborate. Explore the benefits of electronic data interchange (EDI) for your business, discover industry specific EDI programs or browse types of EDI documents.

How does EDI work and why do companies within the retail supply chain industry use it? SPS Commerce is the largest retail network, with more than 95,000 retail supply chain partners to connect and collaborate. Explore the benefits of electronic data interchange (EDI) for your business, discover industry specific EDI programs or browse types of EDI documents.

What does EDI stand for?

EDI is an acronym 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 eCommerce 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 companies’ 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.

The three most common EDI programs our customers choose are:

System EDI Integrations

Need EDI added to an ERP, TMS or other software system? Explore our 200+ pre-built solutions that can automate your order documents.

Our EDI Product

SPS is the only full-service EDI solution on the market. Find out why so many rely on SPS Commerce Fulfillment.

EDI Testing & Certification

Make sure your technology meets your customer’s exact requirements. Get tested & certified by the industry’s leading experts in compliance.

Explore our retail network of businesses who connect through EDI.

Gain instant access to the largest network of up-to-date, mapped, EDI connections and more than 115,000 players in the retail space without having to configure or update any specs yourself.

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. See how other businesses are implementing EDI programs within their companies.

Supplier automates purchase order process with SPS Commerce

“If we didn’t have SPS Commerce to facilitate the transmission of these orders, we would have to hire a temp agency or at least new employees to help with managing the orders.”

– Paige Parker, Co-President, Vibrant Health

Want to learn more about the benefits of EDI? Schedule a consultation for your business today!

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