What is EDI?

EDI – electronic communication

• Do you need to communicate quickly, efficiently and cheaply with your business partners?
• Do you need information to arrive quickly and without errors into your information system?
• Do you still print, copy and issue invoice and then lose track in all the documentation?

We have an effective solution for you – electronic communication.

About EDI

EDI – or electronic data interchange – is a modern electronic way of communication between two independent subjects, through which those subjects exchange standard structured business and other documentation.

Fundamentals of EDI

It can be easily described with an example:

An order made in the customer's information system is automatically transferred into the supplier's information system.

This example precisely describes the main idea behind EDI. Customer made an order in their information system. Receipt exists in an electronic form. Why shouldn't we allow the supplier to work with this very receipt also in an electronic form? When you print the order out from your system, and then send it via post, fax or type it up and send through an email the supplier has no choice but reinsert the order into their system manually again. Whereas when you use an electronic receipt it becomes possible to automatize the order processing.

Electronic data interchange is not only faster but also much cheaper.

Therefore the purpose of EDI is to replace progressively paper documentation with the electronic one and thereby lower the data interchange expenses and enhance efficiency and quality of administered processes. EDI documentation is legally as valid as typical "paper" documentation. With the help of EDI you can interconnect information systems both from within and outside your company.

EDI communication capability

To this day there have been many national and departmental modifications of EDI communication standards, such as ODETTE in the car industry or SWIFT in banking. These standards are however mutually incompatible and therefore new, sole international standard has been developed for electronic data interchange - UN/EDIFACT.

Data security

There are several ways of securing data transferred via EDI: data is protected by the software itself in EDI systems, cryptographic methods (encryption, electronic signature) are employed in communication between individual systems, and last but not least by insertion of the electronic signature and encryption into EDIFACT messages.

You will find more information on our specialized website: www.edizone.cz