Electronic Data Interchange (EDI) is a set of standards that collectively provide a common protocol or syntax for transacting business documents electronically.

Without the use of EDI or some other form of electronic commerce, companies must use a paper-based system for transacting business – meaning paper documents are mailed or faxed between companies to exchange information. Inherent in this process is the inefficiency associated with waiting for large volumes of business data to be transferred, processed and verified, and the potential for errors as the information is manually transcribed.

 The costs associated with data entry errors include: 

• Lost revenue due to incorrect billing
• Chargebacks assessed by trading partners
• Added expenditures required to correct mistakes
• Delays in orders being processed
• Damage to reputation/client relations

Companies that are EDI enabled can send and receive business documents electronically with their trading partners. Read this guide to learn more about EDI and how it applies to the TrueCommerce solution.