EDI Technology as a powerful instrument for modern business
EDI technology was initially designed to reduce a huge amount of electronic documents’ formats and standards. The main purpose of EDI is to standardize data within a separate internal process of exchange that makes this process run faster and more efficiently. Due to the rapid development of Internet technologies, EDI became more applicable and therefore has changed traditional business models. EDI together with Internet create an integrated partner union that is controlled and coordinated as a single entity.
Paperless virtual marketplace is what both sellers and buyers search for. No paper documents, no schedules and enormous supply schemes, no delays and manual failures. Instead of this, parties get faster, automatically organized trading processes.
As both parties involved in EDI must “understand” the rules of electronic data interchange and therefore stick to them, special EDI standards were developed. The most known are ANSI ASC X12, EDIFACT or TRADACOMS, HIPAA. Starting business cooperation, both parties define what types of transaction sets and documents they will be using for trading. Also, they define the common “language” for electronic communication – this is done by using a definite EDI standard.
Another task that EDI successfully does is reducing manual intervention. EDI allows sending data in a correct form according to the set standard and receive it in the same standardized format. Computer applications play the role of “entrepreneurs” that translate data according to the standard. So the used software must operate according to the defined standards in order to exclude mistakes and failures.
EDI is constantly driving major changes in e-commerce and B2B approach. This method may seem difficult and expensive to implement, but after some time of using EDI, its benefits fully compensate the investments. The speed and flexibility of EDI technology still make it a primary method of business communications.