Home > Knowledge Base > What Does EDI Mean in Different Industries?

What Does EDI Mean in Different Industries?

Historically, EDI was introduced in 1960s as a form of electronic communication in the U.S. transportation industry but it took until the early 90s to fully accept the concept within the companies globally.

Since the standardization, EDI has become the norm for companies across several industries for exchanging documents electronically.

The Retail Industry

EDI is being widely used in the food and retail industry and is at the heart of the retail operations for any company. It has continued to be an effective technology for streamlining the order-to-cash cycle, making businesses cost-efficient and increasing profitabilityLearn more

The Transportation and Logistics Industry

EDI is an integral part of the trucking and logistics industry as there are many moving entitiesin this space including shippers, carriers, brokers, agents. To connect them all together so that data flows seamlessly between them could be a he challenge. But with EDI, exchange of all business documents becomes a breeze.

The Healthcare Industry

Data security and compliance is the most important aspect in the healthcare industry. Using EDI to transmit data between different suppliers, insurance companies, patients and medical institutions provides quick turnaround times, avoids delays in claims processing and ultimately provide high quality of care. There are standards called HIPAA that have to be complied by for all healthcare EDI transactions.

The Automotive Industry

The industry like the transportation industry has a lot of moving entities with a tiered supply chain structure and demands a lean manufacturing model to achieve low cost, high quality and eliminate waste. EDI ensures quick onboarding of trading partners, smooth communication and transparency in the product movement between them.

Read next

Learn about different EDI standards that are being used as a norm across industries