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What is Electronic Data Interchange?

These days, it is very important to be able for computers to communicate with each other. As a matter of fact, we may have reached the point where it is more important for computers than it is for humans to communicate with each other.  Effectively, this type of communication often involves something called Electronic Data Interchange. It helps to standardize electronic formats as a means to improve efficiency and capitalize on various market trends in a way that reduces reliance on traditional print media. Employing Fencecore EDI, basically, helps to ensure you can minimize costs, increase processing speeds, cut back on errors, and to reduce redundancies all to improve the relationship between two business partners.


When you start to employ EDI it is quite likely that you will also start to get rid of archaic postal mail methods and other things like the fax, if you have not already moved on from them.  And if you have already moved on then you will likely agree that these ancient formats are a part of a far more passive communication that simply doesn’t work anymore.  Making the switch to EDI you will quickly learn just how much more efficient this is.  Every document you need to send, for example, no longer needs to pass through any human hands; instead, you can deliver these messages at the speed of the internet.


In the world of EDI, “business documents” are the collective paperwork involved in daily, traded operations between businesses.  Perhaps the most common type of EDI business document is the purchase order, followed by invoices and then, maybe, advance ship notices.  Of course, the most common types of documents are not the only ones you are going to come across, and their variety and frequency depends upon the type of business and your industry.


EDI documents are all processed by computers: that much should be obvious.  And yes, that should be an obviously good thing because it speeds up all processes and reduces the number of potential errors. When you use EDI to streamline this process it is called a “standard format.”  It creates consistency between machines—like speaking the same language—so that you can maximize efficiency. Of course, there is not a single kind of standard format; the term simply refers to whatever you establish as that “language”.