What is EDI?

Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard business documents between companies. Instead of paper or PDF attachments, EDI messages are sent in a structured format that can be read automatically by both the sender’s and receiver’s systems.

This means faster, more accurate, and more secure transactions across the supply chain. Watch the video below for a simple explanation of how it works.

How Does EDI Work?

EDI works by translating everyday business documents, such as purchase orders or invoices, into a standard EDI format like EDIFACT or ANSI X12. These documents are then transmitted securely using channels such as AS2, FTP, or a Value-Added Network (VAN).

Because EDI uses a standardised format, trading partners’ systems can receive and process the information automatically, with no manual input.

Want to dive deeper? Explore our Ultimate Guide to EDI for a full step-by-step breakdown.

EDI Transaction Code List – Common EDI Documents

Some of the most widely used ANSI X12 EDI transactions include:

EDI 850 – Purchase Order

EDI 810 – Invoice

EDI 856 – Advance Shipping Notice (ASN)

Some of the most widely used EDIFACT EDI transactions include:

INVOIC Invoice

ORDERS Purchase Order

DESADV Despatch Advice

These are just a few examples – learn more in our EDI Transaction Codes guide, where we have the full EDI Transaction code list.

How EDI Can Help Your Business

From retail and manufacturing to healthcare and logistics, companies across industries rely on EDI to exchange business-critical data efficiently.

To learn more about how EDI can support your business, explore our EDI solutions page.