Electronic data interchange (EDI) software facilitates data exchange between two or more computers. This software is typically used to quickly transfer business documents within companies and between business partners, such as suppliers and customers. It is commonly used in supply chain management, procurement, logistics, invoicing, and various B2B transactions to streamline business processes and improve operational efficiency.
EDI software will typically translate diverse file types into a unified format and provide templates for a standard transfer format. IT teams typically implement these networks to simplify daily communications and document transfers. Companies adopt EDI tools to replace the need for email, fax, and postal mail in many situations. These programs are often used with a data integration platform that collects data from multiple sources, on-premise or in the cloud.
To qualify for inclusion in the Electronic Data Interchange (EDI) category, a product must:
Provide a secure data exchange between a defined network of computers
Offer document mapping and project planning tools to help automate and optimize data transfers
Offer robust security measures like encryption, digital signatures, and secure authentication to protect data during transmission.
Support automated workflows and business rules to streamline data exchange processes
Facilitate various communication protocols for transmitting data, such as AS2, FTP, SFTP, VAN, email