What is Electronic Data Interchange and How Does It Work in Business Today?

Technology has long been a crucial part of human development.  While we tend to think about this as electronic and digital, simple tools like wheels and hammers were among the very first things humans invented to simplify or improve society.  Even among today’s vast digital technology, it is the simplicity of it that continues to make the best improvements.

Take, for example, computers in the workplace, and particularly those which contribute to the electronic data interchange of the global economy.  In fact, EDI might be the most important functions of computers in today’s world. EDI is just a system that sets a standard form of communication between all the computers that might be connected across the globe for the purposes of conducting any type of international business.  

Why EDI is Important

EDI is important, of course, because it allows for people who speak different languages to communicate and do business without having to concern themselves with the language barrier. Of course, computers don’t speak “human” languages, but there are different types of computer languages and there are many different types of data, and all of this need standardization.  EDI, then, capitalizes on the present international trend that is making the transition to fully digitized systems which can more quickly and consistently employ simultaneous automated enterprise exchanges.


When you rely on EDI standards, you can easily see how traditional post mail is now archaic: e-mail has become the new standard.  Well, EDI has far more functionality than just e-mail! With Meade Willis supply chain management software, for example, you can send and share all of your pertinent information across the internet: and all without postal mail or even a fax machine!  


No matter what type of business you do, it is going to require business documentation.  These documents get traded back and forth between all the different parties involved with any business transaction.  The bigger your company is, of course, the more relationships you might have and the more documentation you may need to process.  

These days, though, EDI has removed the physical aspect of this documentation, moving everything to the web for electronic exchange.  By moving to the web, you can avoid many of the problems associated with traditional post; and by relying in computer software, you also reduce the risk of human error.