EDI which stands for Electronic Data Interchange is the computer-to-computer communication of business documents between companies in a standard format.  It is a paperless way to send and receive Purchase Orders, Invoices, etc.  

EDI replaces human-readable documents with electronically coded documents.
The sending computer creates the document and the receiving computer interprets the document.  

Implementation of EDI streamlines the process of exchanging standard business transactions.  

Companies save by eliminating people cost as well as the cost due to errors and double entry of data.  

The transmissions are accomplished by connecting to a mailbox via a modem or the internet.   The most common mailbox is a Value Added Network's (VAN) electronic mailbox.  Each user, identified by a unique EDI ID, accesses his mailbox to send and receive all EDI transactions.  

To standardize the documents communicated between many companies, the Transportation Data Coordinating Committee, in 1975, published its first set of standards.  

EDI standards are formats and protocols that trading partners agree to use when sending and receiving business documents.   Around 1979, The American National Standards Institute (ANSI) designated an accredited standards committee for EDI.  

• More information can be found by visiting the ASCX12-Website.  
  

The standards continue to evolve to address the needs of the member companies.   The Uniform Communication Standard (UCS) is used by the grocery industry and other retail-oriented industry sectors. The UCS standards are a subset of the ANSI ASC X12 standards.  

• For more information, visit the UCSWebsite.
  

In the 1980's, the UN/EDIFACT standards were announced for international trade.   The ANSI standards, however, are still the most commonly used standards in North America.   The VICS (Voluntary Interindustry Commerce Standards Association) standards are used by some retailers and are a subset of the ANSI standards.

• The VICS standards are maintained by the VICS-Association.