EDI, or Electronic Data Interchange, is a method of exchanging business documents between different computer systems in a standardized and automated manner. It allows for the seamless transfer of data, such as purchase orders, invoices, and shipping notices, between trading partners without the need for manual data entry. This not only increases efficiency and accuracy, but also reduces costs and improves communication between businesses. EDI has become an essential tool in modern supply chain management, enabling companies to streamline their processes and stay competitive in today’s fast-paced business world.