What EDI is and when it helps
EDI = Electronic Data Interchange
Short definition
EDI is the electronic exchange of business documents (orders, invoices, dispatch advices) between companies' systems in a standardised format. It replaces emails and PDFs - documents flow straight from system to system, without manual re-entry.
EDI (Electronic Data Interchange) is a standard for exchanging business documents between companies' systems. Instead of sending an order by email or an invoice as a PDF, partners send them in a structured format (e.g. EDIFACT, GS1 XML) that their systems read automatically. Large retail chains and retail buyers most often require it.
Typical EDI documents are the order (ORDERS), confirmation, dispatch advice (DESADV) and invoice (INVOIC). For a supplier, EDI means fewer errors and faster processing, but also a requirement that its ERP can generate and receive these messages. It is often a condition for working with a large retailer.
In practice we usually connect EDI with the accounting system (Comarch Optima, Symfonia, enova365) and sales channels via Open Mercato as a hub: EDI messages from retail chains are turned into orders and invoices in the ERP, and return data is sent back in the required format. This way you do not maintain separate, expensive EDI software.
Key facts about EDI
- EDI replaces emails and PDFs with structured messages.
- Large retail chains most often require it.
- It works best connected to the ERP through an integration hub.
Frequently asked questions
Do I need a separate EDI system?
Not always. EDI messages can be handled through an integration layer connected to the ERP - we turn them into orders and invoices, without maintaining a separate, expensive system.
How is EDI different from a regular ERP integration?
EDI is an integration based on rigid, industry-standard message formats required by a trading partner. A regular ERP integration is more flexible and more often involves channels like marketplaces.
Related terms
A retail chain requires EDI from you? We connect it to your ERP. Let's talk.
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