It's "Electronic Data InterCHANGE". It's a 'standard' way of exchanging information between computer systems (as if we needed another standard eh?). All business documents are translated in a standard way (either X12 or EDIFACT standards) so that those documents can be automatically processed by the computers without human intervention. Except for acceptance/rejection or changes, etc.

Walmart no longer does business with companies that don't use EDI to exchange orders, invoices, status updates, repair work, etc. Many of the bigger companies are doing that because 1) They cut costs associated with handling paper and 2) Because they are trying to consolidate the number of companies they do business with and thereby decreasing costs associated with dealing with that many companies.

There's been talk of XML-based EDI rather than the standard EDI and should be ready for prime-time in a couple more decades.<g>

You usually transmit your docs thru a 3rd party (called a VAN=Value Added Network) like Harbinger or Kleinschmidt and they store them until your trading partners download them into their systems and vice-versa. *Some* companies will do EDI with you directly (thru a modem for example) and this can save you a TON of cash but it's more critical that you keep your end running!

- A Hilton



>Hi Andrew,
>
>Pardon my ignorance. But what is EDI?
>
>Thanks,
>
>Tim