Electronic data interchange is when one computer shares information with another computer by electronic means. It also refers to the exchange standards set up by those operating the computers. This usually does not involve much human interaction. Electronic data interchange is very important in the world of ecommerce.
Electronic data interchange can contain normal information found in a business’s paper documents. For example, a warehouse order could be sent by a manufacturer to ship a certain item to a retailer. Such an order will contain shipping address, bill to address, the UPC code, and quantities of items shipped. The electronic transmission of this information through electronic data interchange saves time and money for the company.
But Electronic data interchange is not limited only to businesses that manufacture products. In the case of medicine, electronic data interchange can be used to transmit patient records or laboratory results. It can also be used in the fields of transportation, engineering, and construction among others.
There must be standards in place so electronic data interchange works smoothly. The standards stipulate that certain formats, character sets, and data elements be used. Without these standards, electronic data interchange would not be possible. UN/EDIFACT is the only type of international standard of electronic data interchange that can be used. While UN/EDIFACT is used primarily outside of North America, ANSI ASC X12 is very popular in North America, but can also be used worldwide.
Sometimes however, specific descriptions of what should happen can be left out and that causes confusion. The two parties using electronic data interchange must work out all aspects of the transmission including what particular terms mean.
Electronic data interchange can be a great time saver for a company. It eliminates hand copies of information, which can be lost. It also allows for tracking of the information, which saves time if you have to research an order. |
