EDI Full Form
What is EDI ?
EDI is a standardized method for transferring data between different computer systems and computer networks. It is most commonly used for e-commerce purposes, such as sending orders to warehouses, tracking shipments and invoicing.
EDI Full Form
The full-form of EDI is “Electronic Data Interchange.” Since many online retailers sell their products and they do not even have physical stock, Therefore, it is necessary that there should be an easy way to send the transfer order information to the location where the goods are stored. EDI Full Form
Electronic :-In general terms, electronics are taken from electrical conducting components. Here the word electronic has been meant only for electrically operated devices. An electronic communication is a device through which information is sent. Only online information can be sent through these electrical devices.
We try to understand this through example. We all have a computer, laptop and mobile phone to see. We keep chatting everyday on Whatsapp, Facebook, Twitter, Instagram by sending messages to our friends and family members. In this, the device or device from which we send the message, that device is called electronic device. These are known as electrical devices, our home’s dish TV machine, computer, fan all come under the category of electronic devices. EDI Full Form
Only online information can be exchanged on an electronic device. The cost of exchanging information from electronic devices is much cheaper, faster, and accessible than exchanging offline information. EDI Full Form
Data :- The data is used for customer information. It may also contain business information of a customer, and may also contain information about the customer’s documents. If we try to understand in easy language, then the information that is recognized by electronic devices through mailing, messages, calls etc. is known as data in Edi technology. With the help of Edi, the Ecommerce platform sends the information of the customer’s product to the product manufacturing companies. Some people also know it by the name of Edi Electronic Data Transfer. EDI Full Form
Interchange :- Interchange is used for exchanging information in banking, finance, e-commerce companies. When data is transferred from one medium to another with the help of electronic device, the process of transfer of data from one medium to another is known as intercharge.
What are the benefits of EDI?
Speed – The exchange of data or information occurs in a matter of seconds instead of days or weeks.
Time-Saving − It eliminates time-consuming activities like printing, handling, filing and distributing documents.
Accuracy − EDI reduces human intervention which reduces human errors such as illegal handwriting, document misunderstanding etc.
Low Cost – It helps companies save money as expenses related to producing and delivering documents are eliminated.
CRM − It helps in managing relationships with customers so that companies can respond quickly to changing customer needs. EDI Full Form
Real-time Transactions − Information is exchanged in real time which allows faster and better decision making.
What is EDI How does it work?
All your company information is stored in your ERP system, such as details related to purchases, inventory levels, invoicing and billing, shipping etc. EDI solutions like Mapdoc or Edisoft integrate with your ERP system, accessing and using the information needed to create the documents needed to do business with other companies.
Also Read :- Full Form Of IFSC
Your supplier and your customer both have specific requirements for how they do business. Things like ship-to-address, unique pricing, etc., are determined when the deal is done and are taken into account when the transaction takes place. This is the data that is used by EDI Solutions to facilitate trade between businesses.
EDI uses the standard of data (ANSI or EDIFACT) to ensure that a request from a party is compatible with the supplier’s information system so that the supplier can fulfill orders placed. It helps companies to do business with each other, especially suppliers who like retailers and distributors can consistently meet the needs and conditions of their customers.
All of this is conducted during the implementation of the EDI software, when the fields are mapped to each other so that the corresponding data is used. When a request is received, the data is transformed to fit the recipient’s system and the information critical to the transaction is used to generate all incoming and outgoing documents.