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What Is Electronic Data Interchange (EDI)?

Understand how Electronic Data Interchange fits into the supply chain

Electronic Data Interchange (EDI) refers to the intercompany, computer-to-computer transmission of business information in a standard format. For EDI purists, "computer-to-computer" means direct transmission from the originating application program to the receiving or processing, application program. An EDI transmission consists only of business data, not any accompanying verbiage or free-form messages.