Explain the term Electronic Data Interchange (EDI).

Electronic Data Interchange (EDI) may be generally easy to understand as the replacement of paper-based purchase orders along with electronic equivalents. This is actually much broader into its application than the procurement process, and impacts of these are far greater than mere automation.

A more careful definition of Electronic Data Interchange is 'the exchange of documents in standardized electronic form, in between organizations, in an automated way, directly from a computer application in individual organization to an application in other'.