What is EDI (Electronic Data Interchange) in Retail? Explained

EDI, or Electronic Data Interchange, in retail is a standardized electronic communication method used to exchange business documents between trading partners. In the retail industry, EDI facilitates the seamless and automated exchange of various transactional documents, such as purchase orders, invoices, and shipment notices, between retailers and their suppliers. This digital communication method streamlines supply chain processes, reduces manual intervention, and improves accuracy and efficiency in data exchange. EDI plays a pivotal role in enhancing collaboration, reducing errors, and accelerating the overall flow of information within the complex network of retail supply chains.