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EDI software is short for Electronic Data Interchange, software that enables the transfer of information or data between different companies through the internet or Value Added Network or VAN. VAN is a private network provider that subscribers can lease communications lines. Among the services of VAN are a specialized service to assist with EDI. As software, EDI becomes more and more useful to companies that use the internet. It allows business enterprises to buy, sell, and trade information with ease and convenience. It can do many things for your company, such as managing and over-viewing of EDI data flows, communicating with your ERP system and your trading partners, translating EDI formats for easier to use, handling of various EDI standard formats, and converting of EDI data and codes. The EDI is like an import/export/ system within your own company system. In managing and over-viewing EDI data flows, it allows you to monitor the flow of communication from and to your applications. It is identical to Enterprise Application Integration, however, in Electronic Data Interchange, it is focused more on external integration. Thus, you can see what comes into and goes out of the software, how the file from EDI is translated, and sends error reports by e-mail. Having many trading partners require different methods of communicating with them. you can expect the Electronic Data Interchange software to handle this problem as there will be the right communication method for each trading partner. Moving forward, you may seem to find the format of EDI to be hard to understand. The software can translate its own format to one that is easier to use and read. The standard format of the software is not easy to use for import and export of data. You will definitely need a simpler format, such as flat format, fixed records or CSV. There are also times when you have to handle more than one format; the software can do this as well. It can handle different usage or interpretation of EDI standards. This proves very useful as some trading companies have different interpretations-which are most of the time incompatible-of the same standard used by the software. Since the software itself continues to innovate for improvement as many trading companies use it. Your company may always receive the latest version of the software, which may have offers for added functionality or advantages for your company. When it comes to conversion of EDI codes and data, your company will be allowed to use different codings, date formats and usage of GLN/ILN to help identify a party easily. All these services are available in the import/export module of your system. Whether your company is manufacturing, utility, shipping, pharmaceuticals, construction, insurance, food processing, banking, warehousing, metals, government, health care, retailing, or petroleum, you may enjoy the services of EDI software. It makes communication and trading easier. Many companies that use the EDI software believe that they save labor; it allows them quick processing of orders, no data entry errors, and easier handling and receiving of orders. Even shipment of the order is guaranteed.

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