Everything You Need to Know About EDI Compliance

EDI software integration

If you’re seeing the term EDI compliance for the first time and wondering what it means, you’re not alone. Millions of people around the world are in the same boat, and businesses of all stripes, from retail chains, restaurants, and so many industries use it on a daily basis.

Here is everything you need to know about EDI and EDI compliance.

What is EDI?

To sum it up easily, EDI simply stands for Electronic Data Interchange. It is, at its core, the simple exchange of data crucial to business operations in a standard format, and completely electronically. Sending information completely electronically between businesses can save paper and help reduce waste.

Legally, businesses handling their information exchanges electronically are considered trading partners, and must be in line with EDI compliance.

So, What is EDI Compliance?

Being EDI compliant simply means that your business has a standardized format for handling digital communications with all of their trading partners, including vendors and other partners. EDI has become a huge part of business operations in the 21st century, and almost every industry uses it, especially retail and distributions chains.

Simply put, EDI helps to make sure that every system that is mission-critical to your business, as well as those of your partners, are exchanging data in the same format. EDI helps achieve a standard data format for your business and its partners to follow, and through smart setup of EDI software integration, can even allow for the great use of automation in several areas, such as management of inventory or processing orders.

Being EDI compliant can make your business run at peak efficiency. It can strengthen all sorts of operations, helping streamline your company’s supply chain management and ordering process, and can even help handle sales. EDI is just another example of how automation can help make running a business easier, allowing you to focus on bigger tasks.