How does EDI work?
EDI stands for Electronic Data Interchange. Basically, it’s a network established between two physical computers that can exchange data using messages with a data transmission protocol. In the modern world, EDI systems can use internet connection and modern data exchange protocols like HTTP.
EDI systems are used to exchange different sorts of standardized documents between two computers. The documents are formed by the computer itself, so human involvement is minimized. Traditionally, document types generated by EDI are purchase orders, invoices, bills, or shipping statuses. Those are generated in a standardized form to avoid language barriers or other human factors making its possible for two agents understand each other. EDI is actively used in transportation and logistics for shipment document exchange.