Types of EDI: A Complete Guide for Businesses Electronic Data Interchange (EDI) is the standard method for automating B2B transactions like purchase orders, invoices, and shipping notices. But not all EDI is the same. Depending on your trading partners, business size, and tech capabilities, the type of EDI you choose can drastically affect your operations. 1. Direct EDI (Point-to-Point) How it works: A direct, secure connection (often via AS2) between two trading partners for EDI document exchange. Best for: High-volume, frequent exchanges between large partners. Pros: Fast, reliable, secure. Cons: Expensive setup and limited scalability without IT support. 2. EDI via VAN (Value Added Network) How it works: A third-party VAN provider manages message routing between partners. Best for: Companies with many trading partners and compliance needs. Pros: Simplified communication, archive logs, compliance support. Cons: Recurring VAN fees ...
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