What is EDI?
EDI- an Electronic Data Interchange (EDI) is invented in the early 70s. There are many EDI standards like X12, EDIFACT and so on. That is used to transit document from computer-to-computer to exchange the business documents in a standard electronic format. Mostly it is used by the business partners, dealers, distributors, manufacturers or traders who frequently practices documents sharing for business purpose.
What comprises an EDI Document?
An EDI document is comprised of data elements, segments, and envelopes that are formatted according to the rules of a particular EDI standard. EDI technique is used to transfer specific format of document at desired digital space. It may be a purchase order, invoice, shipping note or any other business document. It follows the standard format for relevant document.
See the below example how purchase order is coded to transit between the sender & receiver of PO. There is a difference of method in ANSI EDI & EDIFACT EDI but both work the same.
There are 3 steps to sending EDI documents – Prepare the documents, Translate the documents into EDI format, Transmit the EDI documents to your partner. Let us have some more basic information about EDI. It will help you to adopt this technology.
Where EDI Used?
If you are dealing with any business operation and using electronic documents and web or Software application to manage your business, you must know that every single data of that document need to insert into the system manually. Then and then it will be possible to manage that data in the desired way. No system has such intelligence that interprets the text document with its specifications and fills it into the system. For that human resource is required. Same at any stage of business when we want to keep traceability of the data, it is mandatory to do a perfect data entry.
Here EDI comes in the picture. With using it we can send any of business document in a standard format to the receiver’s computer. And not only that this format is so simplified & unique as well that the receiver can directly store this data into their system. This saves the time, money and efforts from both sender & receiver end. It omits the traditional document emailing process in any business operation field.
Market Size and Growth of EDI
According to the dartconsulting business research & analytics, the market size of EDI was estimated to be US$916.5 million in 2013. And not only that with a compounded annual growth rate (CAGR) of 13.7%, the market can be estimated to touchUS$2.1 billion in 2020.
Many tech-savvy companies are happily using this while in some of the cases orthodox have to upgrade to this EDI format as their partners & co businesses had enforced them. It is widely used by eCommerce companies. From the small scale to large enterprises all of the tech savvy are using EDI because of its usefulness.
If you are also interested in upgrading your system EDI compatible or wanted to add innovations into your business operations consult HorizonCore for a best IT support & services. We have the industry’s well-experienced professionals that would consult with you and help you to get a perfect technology or system for your business. To get a free consultation contact us or drop a mail.
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