Electronic Data Interchange (EDI) is the computer-to-computer
exchange of business data in standard formats. In EDI, information is
organized according to a specified format set by both parties,
allowing a "hands-off" computer transaction that requires no
human intervention or rekeying on either end. All information
contained in an EDI transaction set is, for the most part, the same as
on a conventionally printed document.
Organizations have adopted EDI for the same reasons they have
embraced much of today's modern technology-enhanced efficiency and
increased profits.
The EDI standards are developed and maintained by the Accredited
Standards Committee (ASC) X12. The standards are designed to work
across industry and company boundaries. Changes and updates to the
standards are made by consensus, reflecting the needs of the entire
base of standards users, rather than those of a single organization or
business sector. Today, more than 300,000 organizations use the 300+
EDI transaction sets to conduct business