Electronic Data Interchange (EDI) is a standardised communication method for exchanging business information electronically.
EDI aims to replace post, fax and email. Rather than requiring a human to handle documents, as is required through email, EDI documents can simply be sent directly to the application on the recipient’s computer.
It does this by using a standard format for the documents that can be read and understood by a computer. This includes what each piece of information is and what format it is in.