Electronic data interchange is the structured exchange of business documents between organizations’ computer systems using agreed formats.
How it works in retail
Retailers and suppliers can exchange purchase orders, shipment notices and invoices without manually re-entering each document. Partners must align document standards and required fields.
A retail example
A supplier receives an electronic purchase order and sends a structured shipment notice before the goods arrive.
What to keep in mind
Sending an invoice as an ordinary email attachment is not the same as structured EDI. Accurate partner mapping and exception handling remain necessary.
Sources & further reading
IBM: Electronic data interchange
Examples are illustrative. Terminology and measurement conventions can vary by business and market.