EDI (Electronic Data Interchange)
EDI stands for Electronic Data Interchange, and it refers to the electronic exchange of business documents between two parties in a standardized format. Instead of sending orders, invoices, and delivery notes manually via email or paper, companies can send and receive them directly between their systems – quickly, securely, and fully automatically.
Rackbeat June 13, 2025
EDI in Practice
EDI allows companies to automate repetitive and business-critical workflows, especially those dealing with a high volume of documents on a daily basis. For example, when an order is placed by a customer, it can be transferred directly into the company’s WMS or inventory management system without any manual data entry.
This makes order management, purchasing management and document handling far more efficient – and more accurate. It reduces the risk of human error and ensures that all information stays up to date. As a result, EDI is widely used across industries with large product volumes and complex supply chains.
What Does EDI Mean for Your Inventory Management?
When EDI is integrated into your inventory management system, your workflows become significantly more automated. For example, you can:
- Receive and confirm orders directly in your system
- Automatically update stock levels based on goods received
- Get delivery notes and invoices without lifting a finger
For companies relying on an efficient WMS, EDI is a key factor in maintaining accuracy, traceability, and fast response times throughout the supply chain.
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