EDI stands for electronic data intercharge. It is a techincal term for a standardized excharge of digital information between two parts. E-invoice is the most common form of EDI, but it also works with replaceable orders or receipets and more.

EDI is handled in different ways in different parts of the world as it is not a global format. In Europe, a standard deceloped by the United Nations called Edifact is used. Edifacts stands for Electronic Data Intercharge For Administration, Commerce and Transport.

It is a set of internationally agreed standards, catalogs and guidelines for the electronic exchange of structured data between independent data system. That is, how e.g. an e-invoice should be handled.

Adventages of Edifact

There is a lot of advantages of using EDI for electronic data exchange between companies and organizations.

  1. Standardized format: Edifact defines standardized formats for business documents, facilitating the exchange of information between different computerized systems. This reduces the risk of mistakes and inaccuracies that can occur when exchanging information manually.
  2. Automated data exchange: Using Edifact, companies and organizations can automate the exchange of business documents, saving time and reducing manual work. This leads to higher efficieny and lower costs.
  3. Increased flexibility: Edifacts designed to be used in different industries and for different types of business documents. This allows companies and organizations to adapt the standard to their specific needs and increase their flexibility.
  4. Globally accapted standard: Edifact is a globally accapted standard for electronic data exchange and is used by companies and organizations worldwide. This makes it easy to communicate with business partners regardless of geographic location and increases the opportunities for international trade.
  5. Improved customer service: By automating the exchange of business documents, companies and organizations can improve their customer service by quickly and easily managing customer orders, invoicing and delivery processes. This leads to more satisfied customers and increased loyalty.