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  • July 8, 2021

What Is EDI Inventory System And How It Works?

With modern technology, business processes and transactions have become faster and more convenient. This is especially useful for companies that need effective supply chain management. EDI or electronic data exchange is one of the many innovative solutions for companies today. Read on to find out more about it.

EDI is the process of exchanging business documents between companies using computers. In simpler terms, built-in EDI for retail vendors allows a company's computer systems to communicate and exchange data with other companies' computer systems. Although many companies still use traditional fax and mail machines, EDs can be exchanged more quickly.

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How does it work?

When people enter orders into their computers, their orders pass through a series of interface programs. These programs process orders and then send them to an intermediary EDI file.

At this stage, the order is translated into a standard EDI format that the software can understand. The translation software can work with some programs that allow the recipient's computer to read the order.

The order is already in the same format on the recipient's computer. The modem can then transfer the order over the value-added network. This network translates the original form of the sender so that the recipient can read and understand the received document.

Start searching for reputable EDI companies that can be your prospective partners for more efficient and convenient transactions. Learn to compare your options so you can get the best deals.