So, ANSI committee was formed to define the standards. All this electronic data was exchanged using floppy disks and other secondary devices. This simple scenario requires the exchange of various documents between several business partners at different times. Figure 1.1: Typical business documents exchanged by business partners Now think how much of information needs to be transferred and tracked to run the business. Finally, funds are transferred from the customer’s account to the vendor’s account. The customer makes the payment by check, and the vendor deposits the check in the bank.
When the goods are shipped, the vendor invoices the customer. The carrier delivers the products to the customer. The vendor then ships the goods via a carrier. The vendor’s system generates a confirmation date that is sent back to the customer via fax or mail. The vendor receives the purchase order and manually keys in a sales order. A customer who wants to purchase an item creates a purchase order and then faxes or mails it to the vendor. Why EDI Evolved? Let us consider a simple business scenario. I will try my best to keep it in very simple words. The material here is particularly important for someone who is new to EDI technology. This article speaks about the general Terminology and helps you understand the high-level overview of the EDI process. This article is about EDI (Electronic Data Interchange) basics and also includes some of the basics doubts we get about EDI.
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