What is EDI? Electronic Data Interchange Explained
Electronic Data Interchange (EDI) is the automated, computer-to-computer exchange of business documents in a standard format. What it is and how it works.
Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) is the automated exchange of business documents between companies, computer to computer, in a standard electronic format. It replaces paper, email and rekeying for orders, invoices, despatch notes and the other documents trading partners send each other.
The right EDI solution will help improve supply chain operational efficiency and ensure a business maintains agility as markets change.
How EDI works
For decades, forward-thinking companies have harnessed EDI software to automate their inefficient manual processes across their business software and supply networks.
Now, cloud-based EDI gives organisations of all sizes the chance to replace their slow and expensive paper-based processes, in favour of automated and integrated digital systems.
By switching to digital, there’s no more searching around for the latest order, or head-scratching over the status of a credit note. EDI sorts all of this out by taking care of the admin in a fast and accurate way, without the need for manual intervention.
It is a secure, transparent and frictionless way of managing order data and accompanying documentation.
What does trading without EDI cost?
- Orders and other documents raised manually
- PDF's sent by email or post
- Re-keying of post and email orders
- Average cost of £14 to process an order
What changes when you use EDI?
- Orders, Invoices & ASN's raised automatically
- Documents sent and received digitally in seconds
- Digital entry directly into customers’ systems
- Average savings of 65% over paper-based systems
Can you build your own EDI setup?
Yes. You can start with a browser-based service and no integration at all, connect EDI directly into your own ERP or accounting system, or run a fully managed service across a large trading network. Most businesses begin with one and move as they grow, on the same connection.
What are the benefits of EDI?
Trading conditions are tough. Businesses like yours can’t afford to be held back by old, paper-based ways of sharing information.
You want your operations to be faster, more cost effective, more efficient and more accurate. You can achieve this by sharing data digitally and automatically.
How do you get started with EDI?
Whether you are a start-up producer, a mid-sized manufacturer to an online retailer – electronic data interchange (EDI) will save you time and help process your orders more accurately and efficiently. Transalis is an EDI specialists provider, who will make your life simpler.
Measuring the benefit of your investment in an EDI solution can be complex. To help establish a baseline we recommend you look at the time you and your team spend managing invoices, ASN’s and delivery notes. Two of the most common benefits of EDI is the removal of double keying of information and the reduction in data entry errors.
Transalis packages are fixed-cost, with no per-transaction charges, so the price does not climb as your trading volume does.
EDI Made Simple
Powered by Transalis eDI™
Choose the package you need today to enjoy unlimited digital trading with your trading network
| Component | When you pay | How it is priced |
|---|---|---|
| Initial setup and partner mapping | One-time | Priced on the number of trading partners you connect. Thousands of partner maps already exist, so most connections are covered at no extra cost. |
| Integration and workflow automation | One-time | Scoped to the systems and workflows you automate. |
| Subscription and managed services | Monthly | One flat monthly fee covering throughput, platform access, compliance monitoring and support. No metering and no volume tiers. |
Common questions about EDI
- What is EDI in simple terms?
EDI lets two companies' computer systems send each other business documents directly, without anyone typing them in. An order leaves the buyer's system and arrives in the supplier's system already readable, so nobody rekeys it and nothing is mistyped.
- What is EDI in the UK?
EDI in UK business means Electronic Data Interchange, and it is how most of the country's retail supply chain trades. UK retailers commonly require their suppliers to trade by EDI before they will place orders. Transalis is a UK provider connecting more than 15,000 organisations.
- What documents are sent by EDI?
The most common are the purchase order, the order acknowledgement, the despatch advice telling the buyer what is arriving and when, and the invoice. Credit notes, price and product catalogues and stock reports are also routinely exchanged this way.
- Is EDI still used, or has something replaced it?
EDI is still the standard for high-volume trading between businesses and nothing has replaced it. It now runs alongside eInvoicing, which governments are making mandatory in a growing number of countries, including the UK from April 2029.
