Explanation of EDI and How It Came To Be

KCJones

Your first thought might be: “I know already or I wouldn’t be reading this publication.” Yes, we will give you the “schoolbook” definition. We will even tell you a brief history of EDI (Electronic Data Interchange), but our real purpose is to give you the modern era definition of EDI; and back it up with an expert opinion.Developed in the United States in the mid-1960s, the idea of what became known as EDI today originated with a group of railroad companies.

The standardization of documents proved to be necessary. They formed an organization known as the Transportation Data Coordinating Committee (TDCC) . Renamed the Electronic Data Interchange Association (EDIA) , they received a charter from the American National Standards Institute (ANSI) and became the ANSI X12 Committee.

Other businesses began to use proprietary systems to exchange invoices and purchase orders. They recognized the economic advantages of fast, efficient and…

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