To stay competitive in today’s aggressive business environment, companies of all sizes strive to become more responsive and efficient, while trying to reduce the cost of operations. To achieve these goals, conducting business via Electronic Data Interchange (EDI) has become a necessity for many companies. EDI is the electronic exchange of machine-processible, content-standardized data between two companies. This type of exchange is characterized by the interchange of information without any human intervention. When using EDI, businesses benefit from:
 

• Reduced administrative expenses – Document handling, distribution and management expenses are reduced when everything is delivered electronically.

• Time savings – Information reaches trading partners faster and with improved accuracy when using electronic communications.
   
• Improved internal management – With electronic communications, clerical workloads decrease, fewer phone calls are received and there is a reduced chance of errors. Fewer errors mean more timely production and more accurate reporting. Cash management is more precise because the timing of banking transactions is easier to predict. Lower inventory levels are required, resulting in improved cash flow and better inventory management.
   
• Improved trading relationships – Using EDI, communication delays are eliminated, thus the transfer of business information (orders, invoices and so on) is accomplished quickly, resulting in better relationships with trading partners. Customer relations improve due to faster response time and reduced errors in processing orders.
   
• A competitive advantage over non-EDI companies – More companies are choosing to deal with suppliers who use EDI, which means that an increasing share of the market is controlled by companies that require EDI-enabled suppliers.