What is the Full form of EDI?
The EDI full form is the Electronic Data Interchange. EDI is the movement of business documents between company partners in a common electronic format from computer to computer. By converting from a paper-based to an electronic transfer of business documents, firms receive considerable benefits, such as lower costs, increased processing speed, fewer errors, and improved relationships with business partners.
Read Other Full Forms
Many business documents can be transmitted with EDI, but sales orders and invoices are the most common. EDI eliminates the sorting and processing of mail required by conventional company communication. EDI’s primary ability is to standardize the information communicated in business records, enabling paperless transactions.
A Brief Overview of EDI
- Many early information technologies, including EDI, were influenced by developments in military logistics.
- The difficulties of the Berlin airlift in 1948 included the development of methods and procedures for communicating huge quantities of data and information on carried goods, frequently through a 300-baud teletype modem.
- Such basic concepts eventually became the first TDCC (Transportation Data Coordinating Committee) guidelines in the United States. Freight Control Systems was one of the earliest integrated systems that use Electronic Data Interchange (EDI).
- One of these real-time systems was LACES (London Airport Cargo EDP Scheme) at Heathrow Airport in London, UK, in 1971.
- Implementing the DTI (Direct Trader Input) mechanism allowed forwarding agents to submit data directly into the customs processing system, hence lowering processing time.
- In the 1980s, increasing maritime traffic and customs-like challenges comparable to those encountered at Heathrow Airport contributed to the implementation of DTI systems in individual ports and port groups.
The benefits of EDI
- Instead of weeks or days, the transmission of knowledge and data occurs in mere seconds.
- It eliminates tedious duties such as printing, storing, filing, and paper delivery.
- In EDI, human intervention reduces human errors such as sloppy handwriting and improper document handling.
- It helps firms save money by eliminating paper development and distribution expenses.
- EDI facilitates the maintenance of client connections by allowing businesses to respond more swiftly to changing customer requirements.
- Real-time data transmission enables speedier and better decision-making.
