NALPRO EDI

Electronic Data Interchange (EDI) is an information technology that standardizes the exchange of information between two parties to a transaction. Think of EDI as an accounting information system that reduces the cost of transactions between firms and provides timely information for decision making. EDI is simply the sending and receiving of information using computer technology.

Its efficiency has made it a condition of doing business in dozens of industries, including retail, grocery, warehousing, transportation (rail, ship and trucking), health care, education, real estate and government. Any standard business document that one company would exchange with another (such as a purchase order, invoice, shipping schedule, inventory inquiry and claim submission) can be exchanged via EDI between two parties or trading partners, as long as both have made the preparations.

The use of EDI is not limited by differences in companies or communication methods. Instead, EDI bridges the information gap that exists between companies using different computer systems.