Electronic Data Interchange is the type of electronic communication of business transactions, like a confirmations, orders or invoices, between companies. During the transmission of data system using an electronic communication network that uses translation software to convert transactions from  company’s initial format to  EDI standard form.

Electronic Data Interchange enables organizations with different equipment to connect.  This way of communication is used in variety of industries. More than 160 000 companies have made switch to  Electronic Data Interchange. It is co common solution because it have many important advantages.

This method saves money and time because all transactions can be transmitted from one companies to other without the printing and handling of paper. In addition the inputting of data to c information system is not necessary.  Electronic Data Interchange also make easier for customers to order and contact. This solution enables companies to reschedule information flows and reengineer  business process.

In addition,  EDI reduce labor costs. A manual processing is required for document storage and data keying  in non Electronic Data Interchange systems. Labor costs for document processing is an important proportion of costs overhead in companies without EDI.  With this tool much less labor time is required. Furthermore, fewer errors occur because computer systems process the documents rather than processing by hand.