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Function and advantages of EDI
Electronic Data Interchange
EDI is a process for structured electronic data exchange. Communication is telecommunicated via VAN, ISDN+OFTP or SMTP. Not only is this efficient; it also integrates business processes, thereby providing for long-term customer/supplier relationships in a true spirit of partnership. What’s more, business messages – delivery call-offs, orders, delivery notes or invoices – can be automatically forwarded. That, too, makes processes faster, leaner and more efficient.
The advantages in detail:
- Fewer interfaces
- Optimized processes
- Higher degree of automation
- Reduced costs
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Fast placement of orders, ensuring that deadlines
for cash discounts are adhered to
How it works:
EDI messages are always generated and processed in several phases. In the first phase, the data needed for the message (e.g. an order) is automatically retrieved from an internal application and converted into a standard EDI message. The message is then telecommunicated to the business partner, where it is received and converted into a specific in-house format.
How EDI communication works:

