what is Electronic data interchange (EDI)?

 Electronic data exchange(EDI) -  EDI is the electronic exchange of structured business information, in standard formats, between computer. It is technology that allows businesses and organizations to exchange structured data electronically, methods such as mail or fax. It reduces data entry tasks and improves business cycle times.  It is used to automate business processes such as purchasing, invoicing, and shipping. It is quite different from generic correspondence  like e-mail and involves the exchange of specific documents with management and tracking procedures designed to efficiency.  EDI passes information electronically from one computer to another over a network without having to be read, retyped or printed. any company or organization which uses EDI is called a trading partner the computers the different trading partner use do not have to be from the same manufacturer. Any type of business document can be send through Edi provided it confirms to current industry, national and international format standards

Components of EDI

There are three main components of Edi

1. Application services :- EDI application services help organizations to improve their operational efficiency, increase the accuracy of their business data, and achieve greater visibility and control over their supply chain and business processes.

2. Translation services :- translation service of Edi provides the help to change the internal format standards into external format standard and the external format standard into internal format standard. 

3.communication services: - communication service help to send a different document on the different network. 

Benefits or advantages of EDI Technology

There are many benefits of implementation Edi, it benefits both the sender and the receiver it is a mutual effort and its benefit our maximized by sharing information in the timely manner. 

1. Increased efficiency:- 
2. Reduced errors :- 
3. Improved data security:- 
4. Enhanced accessibility and collaboration:- 
5. Automated data processing :- 
6. Lower costs and faster transactions:- 
7. Better business process :- 

Disadvantages of EDI 

1. High  cost for software and hardware.
2. Need for trained personnel to manage and use system. 
3. Limited flexibility and customization options.
4. Compatibility issues between systems of different companies.
5. Less transparent. 
6. Limited accessibility.