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Importance of EDI

 
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Importance of EDI
Electronic Data Interchange (commonly known as "EDI") is the process by which information is transferred between two computer systems so that the two parties are sharing the same data. The data are converted to EDI format and sent via email to the recipient whose systems will convert it to information in their own computer systems.
EDI has considerably changed the speed of international container shipping and international business as a whole. The process becomes instant, and it gives customers and service providers an opportunity to have information automatically uploaded to their customers' systems, but it also allows for information to be sent within their own systems. In the past, a shipment manifest would be required to process all of the information on a shipment. This would need a hard copy to be couriered to the ship as well as all of the discharge ports. Now the manifests are uploaded through EDI and everyone has the information on each ship immediately. EDI has become an important part of international business because it can speed up the processes for any data exchange. In the information age that we live in, these small portions of time saved can mean millions of dollars saved as well.
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