Every transaction in a distribution channel requires a business document. Every transaction leaves a paper trail. Today that "paper trail" is most likely digital in nature.

Electronic Data Interchange (EDI) is the exchange of information using a standardized digital format. Companies that conduct business electronically are called trading partners. EDI standardizes the information found on trading partners' business documents (e.g., invoices, purchase orders, shipping notices, etc.). Information can be transferred seamlessly between trading partners' computers.

EDI reduces the amount of paperwork involved with order processing, and it reduces cycle times. The initial costs are high, but computerized systems can save money in the long term.
 
 

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