The transmission of information between people can be fraught with delays, errors, misinterpretations, and security breaches. Electronic Data Interchange is the computer-to-computer exchange of documents, offering a secure, encrypted alternative to paper processing and supply chain tracking.
Electronic Data Interchange was created to ease the management and flow of transaction information. Accordingly, any data that is part of a business document can be transmitted using Electronic Data Interchange. Trade documents are some of the most frequently exchanged using Electronic Data Interchange. These include bills of lading, status reports, purchase orders, invoices, quotes and other more esoteric forms like residential mortgage insurance applications and healthcare claim payments.
Since Electronic Data Interchange is the exchange of information between systems, rather than between people, the information sent via Electronic Data Interchange is in a style that is only recognizable by a machine. Both the sending and receiving computer must have Electronic Data Interchange software that can interpret the data and transform it into a form usable by the business. There are two common forms of translation for Electronic Data Interchange - a machine to readable format, also known as "rip and read" that creates a printed report, and the automatic translation of Electronic Data Interchange into an ERP or accounting system, also known as Integrated Electronic Data Interchange.
Electronic Data Interchange can be used in a variety of information transactions, including but not limited to:
Founded in 2000, DiCentral is a leading global provider of EDI and supply chain solutions headquartered in Houston, Texas, with 10 offices worldwide supporting customers across multiple sectors in over 27 countries.
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