What are EDI formats?
Because EDI documents are processed by computers rather than humans, a standard format must be used so that the computer can read and understand the documents. EDI has several standard formats and versions in use, with the two most primary formats being ANSI and EDIFACT.
Think of each format as a different language. For businesses to exchange documents, they must agree upon a specific EDI standard to communicate effectively. For this reason, companies rely on an EDI translator. An EDI translator can be implemented via software or a third-party EDI provider to process the documents accurately.