Without connecting your EDI system to your other business software, you'd have to assume manual control over document formatting and data exchange that would defeat the purpose of EDI software.
Helps users format EDI transactions and share data across other business areas, such as your accounting department or any other ERP module.ĮDI systems ensure all data transmitted between users is secure either through encrypted data, secure networks or both.įor stand-alone EDI systems, integration with existing enterprise resource planning (ERP) or supply chain management (SCM) software is essential. Takes the formatted EDI data and translates it into English (or whatever language the system user specifies) so that humans can read it. Here are a few of the functions EDI systems typically perform: EDI translation On the surface, it may not seem like EDI software does very much, but, while it's true that the focus of this technology is fairly narrow, the amount of work that goes into transferring documents this way is not small.
Businesses also have the option to use in-house EDI translators, a feature of EDI software we'll cover in the next section. There are a number of different EDI standards available to businesses today, so it's imperative that any companies attempting to exchange documents this way agree on which version to use beforehand to prevent confusion. For example, dates must all appear as mm/dd/yy, and percentages must all be written out to the. That is, all information must be input in universal ways to ensure computers can understand and interpret the data. What makes EDI reliable is the standardization of document formatting. EDI systems completely automate the process of sharing documents to reduce human error and speed up business processes dramatically. This technology eliminates the need for other, less reliable document transfer services such as postal mail, fax or even email. The kind of documents typically shared via EDI software include things such as:Įssentially, any document containing information pertinent to the business transaction at hand can be shared through electronic data interchange systems from one computer to another. It's most often used by business partners, but the specialized formats enable companies to transfer data safely to and from outside sources as well.ĮDI orchestration within Enterprise WMS Software In this Buyer's Guide, we'll go over exactly what this technology can do for you in the following sections:Įlectronic data interchange (EDI) is a process by which businesses can transfer or trade documents in specific, standardized formats, from computer to computer. It stands for electronic data interchange, and it's a pretty valuable piece of stand-alone or integrated technology for businesses that require a lot of document sharing between outside organizations. When researching enterprise, supply chain, warehouse or any other business software, you've probably come across the acronym EDI once or twice.