What does EDI stand for in logistics?

EDI is an abbreviation for Electronic Data Interchange. It describes how computer systems communicate with one another to transfer business data. EDI is a computer-to-computer protocol that replaces fax, email or post for processing transactions such as orders, dispatch notes and invoices.

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

Why EDI standards exist

A shipper typically works with more than one carrier, and a carrier works with more than one shipper, each on different systems. Without a shared format, every pair would need its own custom converter, which is uneconomical. That is why a widely used standard, EDIFACT, exists; the United Nations developed it in 1986.

The EDI standard defines uniform formats for exchanging documents so that digital versions of orders, waybills and invoices can pass automatically between the different systems in the process chain.