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Explain Electronic Data Interchange or EDI

Electronic Data Interchange (EDI): The predecessor to electronic commerce, EDI has been appropriate only for big North American and European corporations and banks. Firms employing EDI are interconnected via a global computer network, independent of internet however attempts are underway to integrate two networks. This facilitates computer-to-computer exchange of electronic documents (like purchase orders, advance shipment notices & invoices) without human intervention or human readable (that is, paper or electronic) documents. EDI removes manual re-keying of data, cuts order processing costs, raises data accuracy, enhances cycle time, and makes just-in-time deliveries probable. Similar to internet it is standards based system self-governing of the kind of computer hardware and software utilized.

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