EDI in Action

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 EDI in Action

Information flow without EDI is as follows:



  • The fig shows the information flow when paper documents are shuffled between organizations via the mailroom
  • When the buyer sends a purchase order, then relevant data is extracted & recorded on a hard copy.
  • This hard copy is forwarded to several steps, at last manually entered into the system by the data entry operators
  • This process is somewhat overhead in labor costs & time delays.


EDI in Action

Information flow with EDI is as follows:



  • Buyer sends a purchase order to seller computer
  • Seller sends a purchase order confirmation to the buyer
  • Seller sends a booking request to transport company
  • Transport company sends booking confirmation to the seller
  • Seller sends advance ship notice to the buyer
  • Transport company sends status to seller
  • Buyer sends Receipt advice to the seller
  • Seller sends an invoice to the buyer
  • Buyer sends payment to seller EDI as a fast, inexpensive & safe method

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