Step-by-step explanation:
The technology that allows for the electronic communication of business-oriented transactions and information between people and organizations is called electronic data interchange (EDI)1. EDI is the automated, computer-to-computer exchange of standard electronic business documents between business partners over a secure, standardized connection2. EDI enables faster, more accurate, and more efficient communication of business information than paper-based methods. Some examples of EDI documents are purchase orders, invoices, shipping notices, and payment confirmations. EDI can benefit businesses by reducing costs, errors, delays, and manual labor, as well as improving customer service, inventory management, and cash flow.