The Procurement Glossary » Electronic Data Interchange (EDI)

Electronic Data Interchange (EDI)

Technology & Systems

Also known as: EDI

Definition

A standardised format for exchanging business documents such as orders and invoices computer-to-computer.

Explanation

EDI predates web APIs but remains widely used for high-volume trading between large partners. Documents like purchase orders, advance shipping notices and invoices flow in agreed standard formats, removing manual entry and enabling straight-through processing.

Example

The retailer sends EDI purchase orders to its suppliers and receives EDI invoices back automatically.

Related terms

Frequently Asked Questions

What is Electronic Data Interchange (EDI)?

A standardised format for exchanging business documents such as orders and invoices computer-to-computer. EDI predates web APIs but remains widely used for high-volume trading between large partners. Documents like purchase orders, advance shipping notices and invoices flow in agreed standard formats, removing manual entry and enabling straight-through processing.

Can you give an example of Electronic Data Interchange (EDI)?

The retailer sends EDI purchase orders to its suppliers and receives EDI invoices back automatically.

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