The advantages of using EDI

EDI stands for Electronic Data Interchange, and refers to the inter-organizational exchange of business documents in a structured and machine-processable form. EDI has one great advantage. This is that because the time delays are reduced, there is greater certainty in the flow of information. Another main advantage is that due to the use of EDI, there is a generation of functional acknowledgement whenever an EDI message is received and is electronically transmitted to the sender. This message states that the message has been duly received. So the main concept of EDI is that the data is transferred electronically, in a machine-processable form. EDI is ideal for the following situations – a high number of repetitive standard actions, operational time constraints, very tight operating margins, and strong competition requiring significant productivity improvements.