What is Electronic Data Interchange?

A definition of Electronic Data Interchange

“Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents in a standard electronic format between business partners.”

Electronic Data Interchange in Business Glossary - What is an Electronic Data Interchange?

Business Glossary > What is Electronic Data Interchange?


Examples of Electronic Data Interchange in a Sentence:

The company uses Electronic Data Interchange to streamline order processing.

By implementing EDI, trading partners can reduce paperwork significantly.

Electronic Data Interchange helps businesses exchange data quickly and accurately.

Why is Electronic Data Interchange Important in Business?

Understanding Electronic Data Interchange is key to improving efficiency in business transactions. EDI reduces errors, speeds up processing times, and enhances partner relationships by ensuring seamless data exchange.

Know Your Niche Inside Out by Tomorrow: Learn everything you need to know about a niche from a report rushed to you in 24 hours, (or spend the next 3 weeks researching).

Associated Terms

Here are some associated business terms and synonyms for “Electronic Data Interchange”:

  • EDI
  • Data Exchange
  • Automated Data Handling

Walmart’s Use of Electronic Data Interchange

Walmart has been a leader in utilizing EDI to connect with suppliers efficiently. Through EDI, they coordinate inventory levels, process purchase orders, and streamline the supply chain, which has been crucial for maintaining their competitive edge.

Final Notes on Electronic Data Interchange

When implementing Electronic Data Interchange, businesses should consider the compatibility of EDI systems, the costs involved in setup and maintenance, and the potential for increased operational efficiency.


This has been a definition of Electronic Data Interchange meaning.

Explore more from our Business Term Glossary for Entrepreneurs