EDI (electronic data interchange)

What is EDI?

EDI is the digital exchange of fixed business messages between companies, in a format that both systems know. The abbreviation stands for electronic data interchange, in Dutch elektronische gegevensuitwisseling.

The best-known messages are the order, the shipping notice and the invoice. They replace orders, packing slips and invoices by email, post or fax.

How does EDI work?

Each message follows a standard: fixed agreements about which piece of data goes where. A well-known international standard is EDIFACT, from the United Nations. GS1, known for the barcode, bases EANCOM on it.

Your customer's system creates an order message. That arrives at your end directly or via an EDI service provider. Your ERP system reads in the order and later sends back a shipping notice and an invoice.

EDI or an API integration?

With EDI, you and your trading partners follow the same standard for fixed messages. An API integration works via the API of one package, with that package's rules. You often use it between your own systems, such as webshop and accounts. They also go together: an integration passes incoming EDI orders on to your other systems. Read more about system integration.

What can and can't EDI do?

• Can: many orders from regular partners, always the same type of message.
• Can't: customers who send a PDF or a separate email. EDI only works if both parties take part. For those orders, AI can do the groundwork: preparing a draft order. You check it and decide. See processing email automatically with AI.
• Note: agree with each partner who resolves an incorrect message.

How do you start with EDI?

1. List which customers and suppliers want EDI, and which messages.
2. Check whether your package supports EDI. If not, a service provider or implementation partner can help.
3. Agree the standard and the version with your trading partners.
4. Test with each partner before you go live.

In a business analysis, I look at how EDI, orders from email and your systems fit together. I do not sell EDI software myself. Read how I approach integrations and automation, or about AI for wholesalers.

Frequently asked questions

Sources: GS1 Netherlands: GS1 EDI, GS1 Netherlands: getting started (in Dutch), GS1 Sweden: EANCOM, Logius: e-invoicing (in Dutch) and Chamber of Commerce (KvK): e-invoicing is coming (in Dutch). Consulted on 22 October 2026.