| Electronic data interchange, or EDI at it is more | | | | in terms of transactions and information exchange. In |
| commonly known, is defined as the transmission or | | | | the past, the process consisted of a simple physical |
| exchange of data electronically. This process of | | | | exchange. For example, if a manifest (collection of bills |
| transferring data from one computer system to | | | | of lading) had to be exchanged, it would be |
| another is used in many common day to day functions. | | | | transported to the captain of the vessel as well as the |
| For many, EDI may seem like a glorified emailing | | | | ports of discharge. As the technological era emerged |
| system but EDI can perform numerous functions that | | | | and the internet was introduced, this physical |
| email cannot. The shipping industry uses the EDI | | | | transportation was replaced with email and then EDI. |
| system in their daily business functions and it is | | | | EDI now makes this process much simpler with its |
| imperative for them to make use of it as they need to | | | | electronic transfers; no more long distance |
| share information and perform transfers across the | | | | transportation of documents is needed. Sea freight |
| globe. | | | | and air freight use this mode of communication for all |
| EDI is commonly used for numerous business | | | | cargo transportation and as technology advances, it is |
| transactions where email communication will not | | | | expected that EDI will move expand and evolve too. |
| suffice. Electronic transactions such as invoicing, order | | | | EDI is a highly beneficial form of business transactions |
| and exchange confirmations can be completed with | | | | as time and money can be saved. Data is made |
| EDI and the shipping industry relies on this system to | | | | instantly available to the recipient so no time is wasted |
| confirm the transport of cargo and payements. What | | | | in freight transactions. EDI is not only used to transfer |
| makes EDI more convenient than other forms of | | | | information between companies but is also used to |
| electronic transactions is the fact that it is direct and | | | | send important information to ports and customs. |
| companies can perform transactions that will reflect on | | | | Specific EDI software is used to convert information |
| another company’s computer immediately. EDI is | | | | into the appropriate format and once this is done the |
| not only used for transactions but can also be utilised | | | | information is sent to the valid recipient. Once the EDI |
| for resources and information sharing. | | | | information is received, it can be converted back into |
| EDI has changed that way the shipping industry works | | | | its original form. |