EDI is a technology for automated exchange of electronic messages in standardized formats between business partners.
The technology guarantees both the correctness of data conversion, and the very delivery of messages to recipients and the sequence of message delivery. This ensures the accuracy and confidentiality of the transmitted information.
To switch to the use of EDI technology, partners need to connect to a specialized commercial messaging platform (e-commerce platform), use message conversion tools in a standard format and send standardized messages to the addressee. This interaction scheme allows you to connect to EDI once and exchange messages uniformly with all partners, rather than creating and setting up a way to exchange documents with each counterparty.
Integration of systems, transformation and transfer of messages between partners is carried out by specialized companies, that are authorized providers of EDI. Customer are provided with a reliable channel for the transmission of messages to all counterparties (access to their commercial messaging platform) and maintains a specified level of service.
Initially, messages were transmitted over specialized (private) networks and communication channels that only large companies could afford. The emergence of the Internet and the possibility of using it as a channel for transmitting EDI messages has revolutionized and EDI has become available to small businesses and individual entrepreneurs.