Electronic Data Interchange (EDI) is a set of standards for structuring information that is to be electronically exchanged between and within businesses, organizations, government entities and other groups. The standards describe structures that emulate documents, for example purchase orders to automate purchasing. The term EDI is also used to refer to the implementation and operation of systems and processes for creating, transmitting, and receiving EDI documents. Electronic Data Interchange (EDI) can be formally defined as the transfer of structured data, by agreed message standards, from one computer system to another without human intervention. Electronic data interchange (EDI) provides standards for inter-corporate transfer of purchase orders, invoices, shipping notices, and other frequently used business documents. Before the Internet, EDI required expensive dedicated value added networks (VANs). EDI is critical for implementing JIT manufacturing.
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