Answer.
Electronic data
interchange (EDI) is the electronic transfer of a standardized business
transaction between a sender and receiver computer over some kind of private
network or Value Added Network (VAN). EDI system requires EDI standards, EDI
software, EDI networks and trading community.
Benefits of EDI
1. Shorten order
processing and delivery time.
2. Considerable
cost saving
3. No paper work
required
4. Improved cash
flow
5. Reduced
postage and paper handling costs
6. Eliminates
data entry errors. Accuracy of data ensures efficient supply chain.
7. Fast response
and real – time claim processing.
8. Increased
business efficiency.
