Electronic Data Interchange: A Backbone for Backend ERP System

Abstract: Electronic Data Interchange is a process of exchange of data present in one format to another among business partners. The data exchange process takes place between computers of different business units which follow a standard format. EDI process is a commitment among business partners, makes the exchange of information more efficient. EDI process makes organization more responsive to consumer needs via easier order cycles. EDI technology reduces cost by reducing paper usage, mail expense and manual errors occurred during data entry. Enterprise Resource Planning is a system which facilitates the exchange of information among all the internal business functionalities of an organizations and manages all the information flow to business partners. The document exchanged among firms are given as input to respective organizations ERP system. EDI Translation Process is the fundamental economical process of a company whose output documents are used as input to the ERP system. Keywords: Business Partners, EDI Translation Process, Electronic Data Interchange, Enterprise Resource Planning.