EDI is an abbreviation for Electronic Data Interchange. This is a phrase used to describe how systems communicate with one another in order to transfer data. EDI is a computer-to-computer communication protocol that substitutes the need of fax, email, or snail mail to reply to consumer transactions.

Instead of manually replying to client orders via fax or email, EDI speeds up order processing and response times. 

Regarding the purpose of EDI standards

A shipper typically works with more than one transportation firm, and the transportation company typically works with more than one shipper. Different systems are also used by businesses and organizations. A unique communication interface, also known as a converter, would now have to be developed for each system between the parties involved for the smooth transmission of data via EDI. Such a provision of various, individual converters is uneconomical for the parties concerned, which is why the widely used standard EDIfact exists. The United Nations (UN) developed this in 1986.

The corresponding EDI standard describes the communication infrastructure and defines uniform information and document exchange formats. Digital documents have mostly supplanted traditional paper ones. These papers are then made available in the EDI standard and delivered to the addressee in this manner. A standard's requirements establish the exact digital structure of various business documents, which may then be exchanged effortlessly between the various systems engaged in the process chain.