EDI
EDI is the standardized machine-to-machine exchange of business documents like purchase orders and shipping notices.
What EDI is
EDI, electronic data interchange, is the standardized machine-to-machine exchange of business documents: purchase orders, invoices, shipping notices, moving between company systems in agreed formats without email or rekeying.
Why EDI matters
Large retailers and distributors run their supply chains on it: winning a big retail account usually comes with EDI requirements attached, documents in their format, on their timelines, with chargebacks for misses. For suppliers, EDI capability is a door key.
Documents that flow over EDI
- Purchase orders arriving from the buyer
- Invoices and order acknowledgments going back
- Advance ship notices telling the receiver what’s coming
- Inventory and sales reports in ongoing programs
Frequently asked questions
How do small suppliers handle EDI requirements?
Through EDI service providers and web-EDI portals that translate between the retailer’s formats and your systems, rather than building integrations in-house. Cost scales with document volume.
Is EDI being replaced by APIs?
Slowly and partially: modern platforms speak APIs, but the retail and logistics backbone still runs on EDI standards, and the requirement in the vendor manual is what counts.