EDI vs ERP- Can they function well together?#retail #logistics #supplychain #transportation #food

EDI is Electronic data interchange which is a process of exchange of documents between two entities/organizations electronically. It operates independently of internal business processes and focuses on the standardized and secure transmission of data.

ERP (Enterprise Resource Planning) is a system to store data and help the flow of information through out all the business functions within an organization. It serves as a centralized hub for managing and optimizing core internal business functions like finance, human resources, manufacturing, and supply chain.

EDI is used for inter-company document exchange, ensuring uniformity across diverse business ecosystems. EDI should always be "an add-on" to your existing ERP software and should be built into your overall business processes not the opposite. EDI generally should function as its own entity that can be integrated via APIs or flat files with your ERP. However, both systems should be able to function independently.

ERP integrates diverse business processes, allowing data to flow seamlessly between different departments and functions. Your ERP should take care of creating labels or packing slips not your EDI system. Many companies rely on their EDI system to do these non-core activities.

EDI deals with structured data formats for specific transactions (e.g., EDI X12, EDIFACT).

ERP manages diverse data types, including structured and unstructured information.