Your Ultimate Guide to EDI (Electronic Data Interchange)

Electronic Data Interchange (EDI) is the digital backbone of global supply chains. It allows businesses to exchange key documents, like purchase orders and invoices, directly between systems in a standard format, without manual input.

From retail and logistics to healthcare and manufacturing, EDI reduces costs, speeds up processes, and improves accuracy across the board.

In this guide, we’ll break down what EDI is, how it works, why it matters, and how to choose the right solution for your business.

What is EDI?

Electronic Data Interchange (EDI) is a foundational technology for automating and streamlining business communications between companies.

What does EDI stand for, and how does it work?

EDI stands for Electronic Data Interchange, the digital exchange of structured business documents between systems, without the need for manual input. 

Instead of sending paper invoices, PDFs, or emails, businesses use EDI to transfer data like purchase orders, shipping notifications, and invoices directly between trading partners’ systems. This can include ERP systems, warehouse management systems, or standalone EDI platforms.

In most cases, EDI is integrated with internal systems like your ERP (Enterprise Resource Planning) or WMS (Warehouse Management System) to automate processes, also known as EDI integration, which we’ll cover in more detail below. 

By removing manual handling and enabling system-to-system communication, EDI makes business transactions faster, more accurate, and easier to manage at scale.

What problems does EDI solve?

Before EDI, managing orders and invoices meant a lot of paper, emails, phone calls, and manual data entry, which are all prone to errors, delays, and high administrative costs. 

EDI replaces manual processes with automated, standardized data exchange, helping businesses:

• Eliminate duplicate data entry across systems
• Reduce human error and costly mistakes
• Speed up order and invoice processing
• Improve visibility into transactions
• Strengthen partner relationships through faster, more reliable communication

The type of documents exchanged via EDI also matters. For example, a purchase order might be sent as an EDI 850 (ANSI X12) or an ORDERS message (EDIFACT). Invoices might be formatted as EDI 810 (X12) or INVOIC (EDIFACT), and shipping notices as EDI 856 or DESADV. Each format plays a role in automating business workflows. 

If you’re new to these document types, you can learn more in our guide to EDI documents and EDIFACT messages and their uses to learn more.

EDI Integration: What It Is and How It Works

EDI integration is essential for unlocking the full value of EDI. Below, we explore what integration means, how it works, and why it’s essential.

What is EDI integration?

For EDI to deliver maximum value, it needs to connect with the systems you already use, whether that’s your ERP, WMS, or supply chain platform.

That connection is what we call EDI integration. 

It ensures that the documents exchanged via EDI, like purchase orders, shipping notices, and invoices, are automatically processed into your internal systems without manual data entry or delays.

Type of EDI Integration

There are several ways to integrate EDI, depending on your systems, partners, and business goals.

Direct integration

EDI connects directly to your internal systems (like an ERP or WMS) using protocols such as AS2 or FTP. This setup gives you more control and speed but may require more in-house IT support.

Indirect integration

This involves a Value-Added Network (VAN) or a managed service provider, which handles the exchange and translation of EDI messages on your behalf. If your company wants a simplified, outsourced approach, this is the ideal integration solution for you.

Hybrid integration

Many businesses use a mix of both direct connections for key trading partners, and indirect integration for broader network coverage and scalability.

At TrueCommerce, we offer fully managed, cloud-based EDI integrations that work with all leading ERP systems, including SAP, Microsoft Dynamics, NetSuite, Sage, and more. Our ERP-specific accreditations mean we can support native workflows and real-time sync, without heavy custom development. 

If you’re comparing approaches, check out our guide to EDI and ERP integration for best practices and tips.

How EDI integration works step by step

Here’s how EDI integration typically works under the hood:

1. Data extraction: Business data is pulled from your internal system (ERP, WMS, etc.).

2. EDI translation: The data is converted into the correct EDI format (e.g. ANSI X12, EDIFACT).

3. Message transmission: The EDI document is securely transmitted to your trading partner using protocols like AS2, FTP, or through a Value-Added Network (VAN).

4. Data integration: Your partner’s system receives the EDI file and integrates it into their internal systems.

5. Acknowledgment: A confirmation message (such as a functional acknowledgment) lets you know the document was received and processed.

Each of these steps needs to happen quickly and securely to avoid delays or errors in your supply chain.

4 common EDI integration challenges

Even with the right strategy, EDI integration can hit roadblocks, especially with legacy systems or manual processes still in place. 

Four signs that your integration might be falling short include:

1. Frequent manual workarounds or data re-entry
2. Delays in order processing or partner communications
3. Script or mapping failures during data exchange
4. Lack of visibility into document status or errors

With TrueCommerce, these challenges are avoided by design. Our platform uses a unified, cloud-based approach with built-in monitoring, alerts, and real-time visibility. 

That means fewer support tickets, faster resolution times, and smoother day-to-day operations for your team.

Typical use cases: ERP, WMS, and cloud SaaS

EDI integration supports a wide range of business workflows, including:

• EDI-to-ERP: Automatically syncing orders, invoices, and shipping updates with your core business system.

• EDI-to-WMS: Driving warehouse operations with accurate, up-to-date inventory and fulfillment data.

• EDI-to-cloud SaaS: Connecting with eCommerce platforms, marketplaces, and trading networks through flexible, scalable integrations.

How Does EDI Work? Understand the Basics

At a high level, EDI allows two business systems to exchange structured documents, like orders, invoices, and shipping notices, without human intervention. 

But what enables this seamless communication is a set of global standards, transmission protocols, and a step-by-step process that ensures accuracy and interoperability between different platforms.

What are EDI standards and protocols?

EDI relies on standardized formats to ensure different systems speak the same language. These formats define how data should be structured and what fields are required for each type of document.

Some of the most widely used EDI standards include:

• ANSI X12: Commonly used in North America for everything from retail to healthcare
• EDIFACT: Widely adopted across Europe and global supply chains
• TRADACOMS: Used primarily in UK retail
• Peppol: Emerging as a key framework for eInvoicing and procurement across the EU

By following these standards, your business can confidently exchange documents even if you use different software, platforms, or internal formats. 

You can learn more in our detailed guide to EDI standards like ANSI, EDIFACT, and more.

How data is exchanged between trading partners

The process of exchanging EDI data involves several secure steps that happen behind the scenes, often in seconds:

1. A business system (like an ERP) generates a document, such as a purchase order.

2. That document is translated into the correct EDI format using mapping and data transformation tools.

3. The EDI file is then transmitted securely using protocols like:
   • AS2: Direct, encrypted connection over the internet
   • FTP/SFTP: File transfer over a secure channel
   • VAN (Value-Added Network): A third-party network that manages delivery and routing

4. The trading partner receives and processes the file in their own system, often triggering automated actions like order fulfillment or invoice generation.

Example of EDI document flow in 4 steps

To understand it in action, here’s a typical EDI flow between a buyer and a supplier – shown with both ANSI X12 and EDIFACT message types:

1. Purchase Order (EDI 850) / EDIFACT ORDERS: The buyer places an order electronically
2. Advance Shipping Notice (EDI 856) / EDIFACT DESADV: The supplier confirms shipment and provides tracking info
3. Invoice (EDI 810) / EDIFACT INVOIC: The supplier sends the billing document
4. Functional Acknowledgment (EDI 997) / EDIFACT CONTRL: The buyer confirms receipt and validity of the EDI messages

This standardized, automated flow reduces delays, improves visibility, and keeps all parties aligned throughout the transaction lifecycle.

Why Use EDI? 3 Business Benefits of EDI Explained

For many businesses, EDI is a requirement for staying competitive, compliant, and connected in a digital-first supply chain. Whether you’re a retailer, supplier, or manufacturer, the benefits of EDI reach far beyond just going paperless. 

Below, we explore the benefits of EDI and how it helps streamline operations, reduce costs, and unlock long-term growth.

1. Cost and time savings

One of the biggest drivers of EDI adoption is efficiency. By automating the exchange of documents like orders, invoices, and shipping notices, EDI helps companies:

• Speed up transactions by eliminating manual input and approvals
• Reduce administrative workload, freeing teams to focus on higher-value tasks
• Minimize errors and rework caused by manual data entry
• Lower operational costs by replacing paper, postage, and phone-based communication

In short, EDI removes friction from day-to-day workflows, saving you time and money at every stage.

2. Strategic business outcomes

Beyond basic efficiency, EDI also supports bigger-picture business goals:

• Improved data accuracy for better decision-making
• Real-time communication with partners and platforms
• Stronger supplier and customer relationships, built on speed and reliability
• Regulatory compliance, including audit trails and data standards

With the right EDI setup, your business is better positioned to scale operations, reduce supply chain risk, and meet rising customer expectations.

3. Industry-specific benefits

EDI delivers unique advantages depending on the industry, and in many cases, it’s not optional. 

Retail

Large retailers often require EDI compliance from suppliers to streamline ordering and inventory processes. For retailers, EDI reduces out-of-stocks, improves delivery accuracy, and supports omnichannel fulfillment.

Manufacturing

In the manufacturing industry, EDI enables just-in-time (JIT) production, real-time inventory updates, and coordination across global supply chains. It reduces downtime and keeps production lines running smoothly.

Food and beverage

In grocery and foodservice, EDI is often mandatory for supplier onboarding, especially with major chains. It improves traceability, supports freshness and recall protocols, and ensures timely deliveries.

eCommerce and Logistics

EDI supports real-time order tracking, automated fulfillment, and faster shipping, all essential for today’s online buying environment.

Healthcare

EDI improves data security and compliance in the healthcare industry while enabling faster processing of patient records, prescriptions, and supply orders.

For a deeper look at how EDI drives value in specific industries, check out our guides on EDI in eCommerce, healthcare, and logistics, supply chain efficiency, and the order-to-cash cycle.

EDI Across Industries

While the core function of EDI is the same everywhere, automating business document exchange, the use cases and value vary by industry. 

From real-time visibility in logistics to mandatory compliance in retail and food, EDI adapts to the needs of each sector.

Retail: Omnichannel, supplier sync, inventory flow

In retail, EDI plays a critical role in enabling omnichannel operations, syncing supplier data, and automating inventory flows. It’s often a prerequisite for doing business with large chains, especially in grocery, where suppliers are required to send purchase orders, shipping notices, and invoices electronically. 

These capabilities help retailers maintain availability while reducing manual workload and stockouts, as covered in our guide to EDI in Retail.

Food and beverage: Compliance, freshness, and recall readiness

In food and beverage, EDI is essential for complying with retailer mandates, managing shelf life, and enabling fast response in case of recalls. 

It supports real-time order processing, shipment tracking, and batch-level traceability, all key to maintaining freshness and meeting regulatory expectations.

Manufacturing: Inventory control and global supply chain sync

Manufacturers use EDI to automate order-to-delivery workflows and sync operations across global supply chains. 

From raw material procurement to finished goods distribution, EDI reduces manual coordination and enables smarter inventory control, helping teams operate lean without sacrificing responsiveness.

Healthcare: Speed, compliance, and patient safety

In the healthcare sector, EDI improves transaction speed, ensures regulatory compliance, and contributes to patient safety. 

It supports HIPAA-compliant exchanges of invoices, prescriptions, and claims between hospitals, insurers, and pharmacies. Learn more in our overview of The Role of EDI in the Healthcare Industry.

Automotive: Streamlined manufacturing and JIT

Automotive supply chains depend on EDI for just-in-time (JIT) production, seamless supplier coordination, and precision logistics. EDI reduces ordering errors and keeps production lines running efficiently, a topic we explore in our guide to EDI in the UK Automotive Industry.

Logistics and eCommerce: Faster fulfilment

Whether you’re managing a fulfilment centre or shipping direct to consumers, EDI helps you move faster. It automates order flow between eCommerce platforms, 3PLs, and carriers, speeding up shipping and improving visibility. 

You’ll find more examples in our overview of the benefits of EDI in eCommerce, healthcare, and logistics.

Types of EDI Documents and Transaction Codes

EDI is powered by structured document types known as EDI transaction codes or sets. These allow different systems, across industries and regions, to exchange standardized information quickly and accurately. 

The exact formats vary depending on the region and the trading partners involved, but the function remains the same: efficient, automated communication.

Common EDI transaction codes

In North America, the most widely used EDI standards follow the ANSI X12 format. These include:

• EDI 850: Purchase Order
• EDI 810: Invoice
• EDI 856: Advance Shipping Notice (ASN)

These documents are core to retail, logistics, and manufacturing workflows, and help eliminate manual data entry across your supply chain.

In Europe and many international markets, the equivalent standards typically follow the UN/EDIFACT format, such as:

• ORDERS: Purchase Order
• INVOIC: Invoice
• DESADV: Dispatch Advice / ASN

While ANSI X12 messages remain relevant globally (especially when trading with US-based partners), EDIFACT is the more common framework in the EU. 

Most global EDI platforms, including TrueCommerce, support both ANSI and EDIFACT standards, enabling smooth cross-border trade and compliance.

For a full list of common documents, see our guide on types of EDI documents and their uses.

How businesses use EDI documents in daily operations

EDI documents drive core business cycles such as:

• Order-to-Cash (O2C): Automates everything from order receipt to invoicing and payment collection
• Procure-to-Pay (P2P): Streamlines purchasing, goods receipt, and invoice reconciliation
• Ship-to-Receive: Coordinates dispatch, shipment status, and warehouse intake

By automating these processes through EDI, your business can reduce lead times, increase accuracy, and improve your overall supply chain agility.

EDI vs API: What’s the Difference and When to Use Which

While EDI and APIs both facilitate digital communication between systems, they serve different purposes, and choosing between them isn’t always an either-or decision. 

Understanding where each shines helps businesses build more responsive, scalable integration strategies.

Strengths of EDI for standardization 

EDI has been the backbone of B2B communication for decades.. 

It’s built around global standards (like ANSI X12 and EDIFACT), which means businesses across industries and regions can rely on structured, repeatable, and validated document exchanges.

• Standardization: EDI formats are universally recognised across supply chains

• Reliability: Documents are processed in batch, with built-in acknowledgment and error handling

• Partner mandates: Many large retailers, manufacturers, and logistics providers still require EDI compliance, especially in grocery, healthcare, and automotive sectors

If your business operates in a regulated or compliance-heavy industry, EDI remains essential for day-to-day operations.

When to consider API integration

APIs (Application Programming Interfaces) offer a more flexible, real-time way to connect systems. Instead of waiting for batch updates, APIs let platforms exchange data instantly, ideal for modern eCommerce, customer portals, and cloud-based workflows.

Use cases where APIs excel include:

• Real-time order status updates or stock levels
• Integrations with customer-specific platforms or mobile apps
• Dynamic pricing or shipping calculations
• Lightweight, event-driven interactions across cloud services

TrueCommerce supports both EDI and modern API integration, so you can connect with customers and partners however they prefer..

When modern businesses often need both 

Increasingly, businesses aren’t choosing between EDI and APIs, they’re combining them. This hybrid approach allows your organization to:

• Support long-established EDI partners while also
• Integrating with cloud apps, ERPs, or eCommerce platforms via APIs

For example, a supplier might send invoices via EDI to a major retailer while pulling live order data from their ERP through an API. Or a 3PL might transmit shipping confirmations via EDI while updating tracking portals through API endpoints.

For more on how these technologies can work together, read our guide to Understanding EDI and API Integration: When and Why to Use Both.

Choosing the Right EDI Solution

Whether you’re starting from scratch or replacing a legacy system, choosing the right EDI provider can have a lasting impact on your operations, scalability, and customer relationships. 

Below are the key factors to consider as you evaluate EDI solutions, and how TrueCommerce helps businesses make the right choice.

5 things to look for in a provider

Not all EDI platforms offer the same level of support or functionality. As you assess vendors, focus on capabilities that ensure long-term value and operational resilience:

1. Automation: Look for tools that reduce manual intervention across order, shipping, and invoicing workflows

2. Scalability: Your EDI solution should grow with your business and adapt to new trading partners or regions

3. Partner onboarding: Fast, supported onboarding is critical for time-to-value

4. Compliance: Ensure support for global standards like ANSI, EDIFACT, and sector-specific regulations

5. Customer support: Choose a provider with responsive, in-house support and industry-specific expertise

These are all key criteria we cover in Choosing the Best EDI Solution: Features, Benefits and Migration Considerations.

On-premise vs. cloud vs. managed EDI

When selecting a solution, it’s also important to consider how the EDI system is delivered and maintained:

On-premise EDI	Offers control and customisation but requires internal IT resources for setup and ongoing maintenance.
Cloud-based EDI	Allows for easier updates, remote access, and faster scaling, ideal for businesses with limited internal IT support.
Managed EDI services	Take care of everything for you, including mapping, partner onboarding, updates, and error resolution, so your team can stay focused on operations.

TrueCommerce offers fully managed, cloud-based EDI solutions to give you enterprise-grade reliability with hands-off simplicity.

Budget and team considerations

When budgeting for EDI, consider both upfront implementation costs and ongoing support or maintenance fees. Managed services may seem more expensive upfront, but they often deliver higher ROI by reducing internal workload, downtime, and compliance risks. 

Also consider your team’s technical resources. If you’re operating without dedicated integration staff or IT developers, a managed EDI provider can bridge that gap.

For small and growing businesses, we’ve outlined affordable, right-sized options in our guide to EDI Solutions for Small Businesses.

When ERP migration is the perfect time to re-asses 

If your business is planning a move to a new ERP system, it’s the ideal opportunity to evaluate your current EDI setup. ERP migrations are complex, and outdated EDI tools can introduce unnecessary friction, costs, and delays.

TrueCommerce is officially accredited by leading ERP platforms including Microsoft Dynamics, NetSuite, Sage, SAP, and more. 

Our deep integration experience makes it easier to implement EDI alongside your ERP rollout with support for both pre-built and custom workflows.

Implementing EDI in Your Organization

Successful EDI implementation isn’t just about choosing a provider, it’s about aligning people, processes, and systems around a shared goal: streamlined, automated communication with your trading partners. 

Whether you’re adopting EDI for the first time or upgrading a legacy solution, understanding the implementation process is key.

5 key stages of EDI implementation

Most EDI projects follow a structured roadmap to reduce risk and ensure a smooth rollout:

1. Planning: Define your business goals, assess internal readiness, and identify key trading partners.

2. Provider selection: Evaluate EDI vendors based on features, industry fit, support, and integration capabilities.

3. Onboarding: Set up users, workflows, and connections with your ERP or accounting systems.

4. Testing: Validate document exchange with internal systems and external partners.

5. Go-live: Deploy in production and monitor performance closely.

Internal alignment matters just as much as technology. Ensure all departments, from IT and finance to customer service and operations, are part of the implementation journey. Securing stakeholder buy-in early will reduce delays and help you avoid costly surprises later on.

You can explore a more detailed breakdown in our guide to implementing EDI in your organization.

Integration with internal back-end systems (ERP, WMS, etc.)

One of the most complex aspects of implementation is integrating EDI with your back-end systems, typically your ERP, WMS, or accounting software. 

Common challenges of EDI integration	Best practices of EDI integration
Mapping EDI documents to internal data structures	Working with an EDI provider experienced in your ERP platform
Handling exceptions or validation rules	Starting with a phased rollout (e.g., prioritising key trading partners first)
Ensuring that updates in one system flow correctly to others	Ensuring clear communication between IT and business teams

TrueCommerce’s accredited ERP integrations make this process significantly easier, with prebuilt connectors and expert support tailored to your systems.

Testing and onboarding trading partners

Before going live, you need to test each trading partner for:

• Document format and standard compliance
• Communication protocols (e.g. AS2, FTP, VAN)
• End-to-end data flow across systems

Partner onboarding is often where EDI projects stall, especially if you’re managing it manually. 

That’s why many businesses choose a provider like TrueCommerce. We manage onboarding and testing on your behalf, ensuring a smoother launch and faster time to value.

EDI Compliance and Security

When it comes to EDI, accuracy and efficiency are only part of the picture. 

To protect your business and stay on the right side of regulations, your EDI solution must also meet strict compliance and security requirements, especially in regulated industries like healthcare, retail, or logistics.

Meeting regulatory requirements

As global regulations evolve, staying compliant means more than just exchanging the right data. You also need to manage how that data is handled, stored, and shared. 

Here are examples of EDI compliance areas:

• GDPR: Ensuring proper handling of personal data within EDI transmissions.
• UK and EU e-invoicing mandates: Aligning with government reporting standards for electronic business documents.
• Industry-specific rules: From healthcare (e.g. HL7) to automotive (e.g. ODETTE), different sectors enforce their own document standards and partner protocols.

Whether you’re operating in the UK, EU, or across borders, your EDI provider must support region-specific compliance frameworks. 

Check out our guide to EDI Compliance and Security: Meeting UK and EU Regulations for more information.

Security data protocols, encryption, audit trails 

Beyond compliance, your EDI solution should also protect your data at every stage of its journey from sender to recipient and all systems in between.

Modern EDI systems safeguard your transactions through:

• Encryption protocols (e.g. HTTPS, TLS, AS2) to protect data in transit
• Authentication and access controls, including password policies and user roles
• Digital signatures for message integrity and non-repudiation
• Audit trails and logs for full traceability and compliance reporting

TrueCommerce is SOC 2 Type 2 certified and offers 99.9% platform uptime, giving you enterprise-grade security with full peace of mind.

EDI and Sustainability

While EDI is often associated with automation and efficiency, it also plays a powerful role in helping businesses meet their ESG (Environmental, Social, and Governance) and CSR (Corporate Social Responsibility) goals.

By digitizing document exchange, your organization can significantly cut down on waste, energy use, and operational overhead.

How EDI supports ESG and CSR goals and reduces environmental impact 

Replacing paper-based processes with electronic data interchange has clear sustainability advantages:

• Paper reduction: Eliminating physical purchase orders, invoices, and shipping notices drastically reduces paper use and printing requirements.

• Energy efficiency: Fewer manual steps means less office equipment usage and less reliance on mail or freight services.

• Smarter resource planning: Real-time visibility and automation support better demand forecasting, reducing overproduction and excess stock.

For many businesses, EDI adoption is an easy and impactful way to begin aligning with global sustainability framework and stakeholder expectations. 

You can explore more in our guide to EDI and sustainability, where we cover how electronic data exchange supports green business practices.

EDI and Forecasting: Smarter, Data-Driven Planning

Beyond streamlining transactions, EDI provides a valuable source of real-time operational data that can strengthen forecasting, planning, and decision-making across your supply chain.

When integrated effectively, EDI helps your organization shift from reactive processes to proactive, data-driven strategies.

Real-time data for better decision-making

EDI enables instant visibility into business-critical events – from incoming purchase orders to stock levels and supplier response times. This means:

• Faster response to sales trends and seasonal demand changes
• Automated inventory alerts when thresholds are met
• Insight into supplier lead times, helping you adjust procurement cycles

Instead of relying on manual updates or guesswork, you can make decisions based on live, accurate data flowing directly from your trading partners.

Demand planning and inventory optimisation

Accurate data fuels more efficient inventory management. By feeding EDI data into your planning systems, you can:

• Reduce overstock and stockouts
• Minimize waste from expired or excess goods
• Align purchasing cycles with real consumption patterns

This is particularly important in sectors like retail, manufacturing, and food and beverage, where tight margins and shifting demand make forecasting accuracy essential.

For a deeper dive into how EDI supports smarter planning, see How EDI Supports Better Demand Forecasting and Inventory Planning.

3 Trends in the Future of EDI 

As business landscapes evolve, so too does EDI. What began as a tool for basic document exchange has become a critical foundation for digital supply chains. 

Looking ahead, several trends are shaping the future of EDI – and influencing how businesses prepare for long-term success.

Trend 1: Cloud-first and managed services

The shift from on-premise to cloud-based EDI continues to accelerate. More organizations are embracing fully managed EDI services to offload the technical burden and focus on outcomes, not infrastructure.

Benefits include:

• Lower upfront IT costs
• Faster deployment and scalability
• Ongoing support and maintenance included

Outsourcing EDI to trusted providers like TrueCommerce gives businesses greater agility – especially as trading networks grow in size and complexity.

Trend 2: EDI + API convergence

While EDI remains essential for standardized, partner-driven transactions, many modern businesses also need real-time data exchange, which is where APIs come in.

The convergence of EDI and API technologies enables:

• Faster decision-making through instant data updates
• More flexible integration with cloud services and niche platforms
• Unified platforms that support both formats depending on the partner or use case

You can learn more about this hybrid model in our guide to understanding EDI and API integration, where we talk more about when and why to use both. 

Trend 3: The growing complexity of eCommerce

As eCommerce expands, so do the demands on back-end operations. EDI plays a critical role in keeping up with:

• Higher order volumes and faster fulfilment cycles
• Multi-channel inventory management
• Automated updates across multiple platforms and warehouses

Without solid EDI systems, your business can risk delays, stock issues, and poor customer experiences. If you’re curious, learn more about the benefits of EDI in eCommerce, healthcare, and logistics for examples across industries.

Is EDI Right for Your Business?

If you’re looking to scale operations, improve efficiency, or strengthen relationships with your partners, EDI is the right choice for you. 

For many industries, especially those working with large retailers or global supply chains, EDI is a requirement, not a nice-to-have.

Recap of 4 key benefits of EDI

When EDI is done right, it doesn’t just support your business, it helps drive it forward. Throughout this guide, we’ve seen how EDI can transform business operations. 

To recap, EDI helps you:

1. Automate manual processes and eliminate repetitive admin work
2. Reduce errors and delays through accurate, real-time data exchange
3. Strengthen trading partner relationships by meeting compliance and system expectations
4. Support strategic growth with scalable, integrated systems

When to adopt EDI

If you’re still relying on spreadsheets, email attachments, or manual data entry to communicate with customers or suppliers, you’re likely already feeling the friction. 

Whether you’re expanding into new markets or upgrading outdated systems, EDI is a natural step forward when:

• You’re experiencing growing transaction volumes and need efficiency
• Trading partners are requesting EDI as part of doing business
• You’re looking to integrate your systems (ERP, WMS, CRM) into one cohesive supply chain flow

If that sounds familiar, now’s the time to explore your options.

Next steps

At TrueCommerce, we help thousands of businesses around the world simplify EDI – no matter their size, sector, or tech stack. Our fully managed solutions integrate seamlessly with leading ERP platforms and offer end-to-end support, from setup to partner onboarding and beyond.

Here’s how to move forward:

1. Audit your current setup: Where are the bottlenecks? What would automation improve?

2. Talk to an expert: Our team can help you evaluate your needs, recommend the right solution, and even support ERP migration if you’re planning one.

3. Get started with a scalable solution: TrueCommerce adapts to your business and grows with it.

To learn more about implementation and internal alignment, check out our guide to implementing EDI in your organization. 

If you’re ready to take the next step, book a free demo or contact our expert team – we’re happy to help. 

FAQs about Electronic Data Interchange

EDI can seem complex at first, but it becomes much clearer once you understand the basics. Below are some frequently asked questions to help you get started.

What is Electronic Data Interchange (EDI)?

Electronic Data Interchange is the structured digital exchange of business documents between trading partners. It allows systems to ‘talk’ to each other directly, improving transaction speed, accuracy, and compliance across industries.

What is EDI in business?

In business, EDI (Electronic Data Interchange) is used to automate the exchange of documents like purchase orders, invoices, and shipping notices between systems. It helps improve speed, accuracy, and efficiency in supply chain and financial operations.

How does EDI work?

EDI works by converting business documents into standard formats, transmitting them securely (via AS2, FTP, or VAN), and integrating them with back-end systems like ERP or WMS. It replaces paper-based processes with fast, structured, digital communication.

What is EDI software?

EDI software enables businesses to send, receive, translate, and manage electronic business documents. It may be integrated directly with your ERP or operate as a standalone or cloud-based solution, often with built-in compliance and partner mapping features.

What is EDI payment?

An EDI payment refers to the electronic transfer of payment-related documents between trading partners, typically invoices (EDI 810), remittance advice, and payment confirmations. It streamlines accounts payable and receivable by reducing manual intervention.

What is EDI tracking?

EDI tracking refers to the real-time monitoring of EDI document flows, such as order status, shipment updates (via ASN/EDI 856), and acknowledgments. It provides visibility into where documents are in the exchange process and whether they’ve been received, accepted, or rejected by your trading partners.

What is EDI in healthcare?

EDI in healthcare is used to transmit medical and administrative data electronically, such as insurance claims, patient eligibility checks, and remittance advice. It ensures secure, standardized communication between providers, insurers, and regulatory bodies.