A computer system comprises hardware and software components, aiming to offer a powerful computational tool. These systems play a crucial role across diverse domains, aiding us in numerous tasks. The prevalence of the internet has significantly bolstered the utilization of computers for information sharing and communication. Computer systems empower us to store, process, display, and transmit information. Even in a basic modern computer system, multiple programs are typically required to carry out various functions effectively.

Thursday, March 18, 2021

Electronic data interchange

Electronic data interchange (EDI) is a way of conducting inter-organizational transactions electronically. It is 'the inter-company computer-to-computer communication of standard business transactions in a standard format that permits the receiver to perform the intended transaction’.

There are many benefits of EDI for businesses of all sizes, operating in many sectors including retail, food, logistics, distribution, construction, manufacturing and many more.

Electronic transmission of data between trading partners is the only way to get rid of a bad synchronization between a fast goods flow and a slower document and data flow.

In an EDI environment the sending application generates a business transaction, transmits it to the receiver, and the receiver uses the data as input to the receiving application.

EDI is intended to allow the receiver to perform a 'standard, structured business transaction' automatically, e.g. accept and process a purchase order or bill a customer.

EDI enables the fast, accurate, reliable and automated exchange of business documents, removing the need for manual paper-based processes.
Electronic data interchange
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