Electronic Data Interchange(EDI)
The computer-to-computer exchange of business documents and data in a standardized electronic format between trading partners.
Overview
Electronic Data Interchange (EDI) replaces paper-based business documents—such as purchase orders, invoices, and shipping notices—with standardized electronic messages exchanged directly between computer systems. In federal procurement, EDI streamlines supply chain operations and reduces processing time by eliminating manual data entry.
Why It Matters in GovCon
Many DoD and civilian logistics systems require EDI-capable suppliers. Contractors participating in supply-chain-heavy contracts must integrate with government EDI standards to receive orders, submit invoices, and report shipment status efficiently.
Key Details
- Standards: Common standards include ANSI X12 (used in the U.S.) and UN/EDIFACT (international).
- WAWF: The Wide Area Workflow system uses EDI principles for electronic invoicing and receipt in DoD contracts.
- Transaction Sets: Each business document type has a designated transaction set number (e.g., 850 for purchase orders).
- VAN: Many organizations use a Value-Added Network as an intermediary to route EDI messages securely.
- Compliance: Federal contracts may specify EDI requirements in DFARS or contract-specific clauses.
Related Terms
- Wide Area Workflow (WAWF)
- Federal Supply Class (FSC)
- Invoicing and Payment
- DFARS
More Classification Terms
The standard numerical system used to classify business establishments by industry type, determining size standards and contract eligibility.
An international body that develops voluntary standards for quality, safety, and processes across industries.
A 13-digit numeric code used by the federal government to identify and catalog supplies and materials in a standardized way.
A four-character alphanumeric code used to classify products and services in federal contracting, enabling reporting and opportunity categorization.
A legacy U.S. government system for classifying industries by type of economic activity, largely superseded by NAICS but still used in some contexts.
United Nations Standard Products and Services Code, a global classification system used by governments and organizations to categorize products and services.
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