EDI -- Electronic Data Interchange

• EDI is direct computer-to-computer^[1] exchange of data normally (or previously) provided on standard business paper documents.
• Can be implemented within a business, but normally used between companies for the following reasons:
  • Cost savings due to elimination of re-keying, printing, courier costs
  • Speed: communications can be essentially instantaneous
  • Reduction of errors
  • Security
  • Integration with other office automation applications
  • Just-in-time deliveries.
• Use of EDI is now regarded as essential in most large manufacturing companies, and is now common in many smaller companies.