What is EDI?

Electronic Data Interchange (EDI) refers to the transmission of standard economic information between electronic computer systems of trading partners through communication networks, so that data can be exchanged and automatically processed according to a common standard format. Because the use of EDI can effectively reduce and eventually eliminate paper documents in the trade process, EDI is also commonly known as "paperless transaction".

This is a new way to handle business by computer. EDI exchanges and processes information in trade, transportation, insurance, banking, customs and other industries in an internationally recognized standard format through computer communication networks, and completes all trade-centered business processes.

The main advantages of using EDI are

(1) Reduce the consumption of paper documents.

(2) It reduces a lot of repetitive work and improves work efficiency.

(3) It enables both parties to conduct transactions in a faster and more effective way, greatly simplifying the ordering process or the inventory process, and enabling both parties to make full use of their human and material resources in time.

(4) It can improve the relationship between the two parties, manufacturers can accurately estimate the future demand for goods, freight forwarders can simplify a lot of export paperwork, and commercial users can improve inventory efficiency and enhance competitiveness.