EDI is a challenging and complicated process used by many big-box stores in the US. If an e-commerce or 3PL business wants to do business with some of these stores, they will have to adapt to their protocols, which is more often than not, EDI.
EDI stands for 'Electronic Data Interchange' and is a (somewhat archaic) communication system used to transfer purchase orders, invoices, receipts, and more. Retailers choose to continue using EDI because it is fast, reliable, and standardized. This means any document that is sent or received via EDI is in the same format. Although this is great for ensuring all business partners are on the same page about their agreements, each member in the exchange of documents needs to understand how to interpret and create these documents first, which can take a skilled hand.
To optimize the use of EDI, a business must first master the basics of electronic data interchanges as well as the specific requirements set by their business partners' programs.
A good first step for starting out with EDI, or preparing for implementing EDI documents into your operations, is to familiarize yourself with some of the unique terms and phrases used in EDI protocols. Infoplus created an industry-standard EDI Glossary to help you and your team get started with this tool and ensure everyone is up-to-speed about the basics of EDI.
See More EDI Content on the Infoplus Blog!
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