What is the main feature of Electronic Data Interchange (EDI)?

The main feature of Electronic Data Interchange (EDI) is to facilitate the computer-to-computer exchange of business documents. EDI streamlines the process of transferring data related to orders, invoices, shipping notices, and other essential business communications directly between the systems of trading partners. This automation increases efficiency by reducing the need for manual intervention, lowering the chances of human error, and speeding up the processing times. By using standardized formats for these exchanges, EDI enables different businesses, often using disparate systems, to communicate seamlessly and effectively.

This capability significantly enhances operational efficiency and accuracy, making it a crucial tool in supply chain management and various commercial transactions.