Electronic Data Interchange (EDI) involves the swapping of business documents in a standard format from computer-to-computer. It presents the capability as well as the practice of exchanging information between two companies electronically rather than the traditional form of mail, courier, & fax.
The major advantages of EDI are as follows:
• Instant processing of information
• Improvised customer service
• Limited paperwork
• High productivity
• Advanced tracing and expediting
• Cost efficiency
• Competitive benefit
• Advanced billing
The application of EDI supply chain partners can overcome the deformity and falsehood in supply and demand information by remodelling technologies to support real-time sharing of actual demand and supply information.