What is EDI?
EDI lets companies exchange orders, packing slips and invoices automatically, without retyping or emailing. Below you can read how it works, which standards exist and when it pays off.
EDI (Electronic Data Interchange) is the automated exchange of business documents such as orders, packing slips and invoices between companies, in a fixed message format. Systems process those messages without intervention, removing manual work and errors from the trade chain.
How does EDI work?
With EDI, two companies do not send their documents as a PDF or email, but as a structured message both systems understand automatically. A sales order from one ERP thus comes in directly as a purchase order in the other ERP, with the correct item numbers, quantities and prices.
Because the messages have a fixed structure, no person is needed to enter them. That saves time and removes typing errors from the trade chain. The messages travel via a secure channel, for example AS2, SFTP or an EDI service provider.
Which EDI standards are there?
An EDI message always follows an agreed standard, so parties worldwide understand each other's data. The best known are:
- EDIFACT, the international UN standard, widely used in Europe (orders via ORDERS, packing slips via DESADV, invoices via INVOIC).
- ANSI X12, the North American counterpart.
- PEPPOL and other XML formats for e-invoicing to governments and companies.
When is EDI worthwhile?
EDI pays off as soon as you structurally exchange many messages with the same trading partners: retailers, carriers, suppliers or wholesalers. Setting it up properly once means years of orders and invoices that process themselves, even at high volumes.
Frequently asked questions.
What is the difference between EDI and an API?
EDI is about standardised batch messages between trading partners and has existed for decades; APIs are more modern, real time and more flexible. In practice we often use both: EDI towards partners who expect it, APIs towards webshops and modern systems.
Do I need an EDI service provider?
Not necessarily. Sometimes we connect directly via AS2 or SFTP, sometimes via an existing EDI provider or VAN. In the process scan, we determine which route is most stable and cost-effective for your partners.
How we help you with this.
From concept to a working solution. This is what connects to it.
Connect or build something?
In a free one-hour process scan, we look at your systems and the manual work between them. After that, a fixed-fee quote. No surprises afterwards.