What is EDI?
EDI stands for Electronic Data Interchange — a standardised method for exchanging business documents electronically between organisations, without manual intervention. This includes orders, dispatch notes, invoices and delivery information.
EDI = doing business automatically, system-to-system, without email or paper.
It is widely used in sectors such as retail, logistics, industry, pharmaceuticals and food.
🎯 What does EDI do?
With EDI, organisations can:
- Automatically send and receive orders
- Process invoices digitally
- Share dispatch information (SSCC, tracking codes)
- Share stock levels, returns and goods-receipt confirmations
- Drastically reduce human errors and processing time
📦 Common EDI messages
| EDI message | Meaning | Purpose |
|---|---|---|
| ORDERS | Order message | Order for goods or services |
| DESADV | Dispatch Advice | Dispatch message with details such as SSCC, quantities, pallet structure |
| INVOIC | Invoice message | Electronic invoice with VAT, prices, quantities |
| RECADV | Receiving Advice | Goods-receipt confirmation with differences or damage |
| ORDRSP | Order Response | Confirmation or amendment of an order |
| IFTMIN | Transport order | Instructing the logistics service provider |
🔗 EDI and system integration
| System | Role in EDI exchange |
|---|---|
| ERP | Sends and receives EDI messages, processes them automatically |
| WMS | Processes dispatch information (SSCC, pallet data) |
| MES | Links production orders with delivery data |
| TMS | Processes transport and delivery information |
EDI messages are typically transmitted via protocols such as AS2, SFTP or via VANs (Value Added Networks).
✅ Benefits of EDI
- Faster processing of orders and deliveries
- Fewer errors through automated data processing
- Lower costs through less manual work
- Better collaboration between suppliers, customers and logistics
- Traceability and compliance (e.g. GS1, SSCC, GMP)
📌 In summary
EDI is the digital backbone of modern supply chain collaboration. Through EDI, organisations can automatically and reliably exchange information about orders, shipments and invoices.
Looking to get started with EDI, integrate it with your ERP or implement a GS1 dispatch message such as DESADV? Request an EDI integration scan or message template!