EDI basic concepts

EDI is the computer to computer exchange between two companies of standard business documents in electronic format. There are two key elements in basic EDI first electronic documents will replace paper documents and second exchange of documents takes place in standard format.Using these two basic concepts any business can enter the world of EDI and begin taking advantage of the speed and economy of electronic commerce
one company has automated a number of business documents like purchase orders and invoices, you may wish to integrate your EDI environment to other business systems. Implementing EDI first time can appear to be daunting challenge for many companies however there are no of ways to which EDI can be implmented across business. For companies that have internal resources to manage EDI infrastructure, EDI can be deployed by installing software which would allow EDI information sent via VAN (value added network) or point to point connection.
VAN are private networks where EDI related information can be exchanged between companies securely. trading partners will require account with EDI VAN provider which simply acts as electronic mail box to both send and receive electronic documents.
In today fast faced business world your business already moving in this direction,customers and suppliers may already approaching you to begin trading information electronically.
So what is document ? A document is any form of communication ,usually paper based sent between two companies
*purchase orders *Invoices * Shippinf Notices etc
EDI replaces human readable , paper or electronic based documents with machine readable, electronically coded documents with EDI sending computer will creates message and receive computer will interpret the message without human involvement.
There are many ways in which EDI environment can be implemented across trading partnet community.Whether you are looking to implement EDI for the first time or expand your EDI infrastructure to support trading partners in other regions in around the world.There are many EDI tools and connectvity options available to suit your needs.