A standardized method for exchanging structured business documents electronically between organisations without manual data entry. In government contracting, Electronic Data Interchange (EDI) is used to transmit documents such as purchase orders, invoices, shipping notices, payment information, and other procurement transactions in agreed electronic formats. EDI improves the speed, accuracy, and security of business communications by reducing paperwork and minimizing data entry errors. Contractors working with federal agencies or prime contractors may be required to use EDI or compatible electronic procurement systems to support efficient ordering, invoicing, supply chain management, and contract administration.
Electronic Data Interchange (EDI)
A standardised method for exchanging structured business documents electronically between organisations without manual data entry.
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Related Glossary Terms
The official compilation of permanent U.S. federal laws, providing the statutory basis for many contracting requirements.
A global classification system used to categorize products and services for procurement and spend analysis.
A unique 12-character identifier assigned via SAM.gov to organizations doing business with the federal government, replacing the DUNS number.
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