Who Uses EDI?

EDI (Electronic Data Interchange) refers to the process of exchanging information electronically. In many cases, it saves thousands of hours (and countless dollars) for businesses with scores of documents to complete and file.

Who-Uses-EDI - Commport Communications

Who uses EDI:

Here is the answer to the question who uses EDI?

EDI has been used in the past primarily by automotive and retail businesses, however in the past few years, the format has been more widely adopted. Manufacturing, healthcare, pharmaceutical, utility and construction companies are good examples of EDI clients.

Here is a list of the top 12 industries that commonly utilize EDI on a daily basis,

  1. Retail and Consumer Goods
  2. Manufacturing and Supply Chain
  3. Logistics and Transportation
  4. Healthcare
  5. Automotive
  6. Banking and Finance
  7. Pharmaceuticals
  8. Energy and Utilities
  9. Insurance
  10. Government and Public Sector
  11. Telecommunications
  12. Food and Beverage


1. Retail and Consumer Goods: EDI is extensively used in the retail industry for activities such as purchase orders, invoices, advanced shipping notices, and inventory management.

2. Manufacturing and Supply Chain: Manufacturing companies rely on EDI for streamlining supply chain operations, including order processing, shipping notifications, and inventory control.

3. Logistics and Transportation: EDI plays a crucial role in the transportation industry, enabling electronic communication between carriers, shippers, and customs authorities for tasks like freight bookings, shipping instructions, and customs documentation.

4. Healthcare: The healthcare sector utilizes EDI for claims processing, eligibility verification, electronic remittance advice, and coordination of benefits between healthcare providers, insurers, and government entities.

5. Automotive: EDI is employed in the automotive industry for various processes, including purchase orders, production schedules, shipping notifications, and inventory management.

6. Banking and Finance: Financial institutions leverage EDI for electronic funds transfers, payment processing, and remittance advice.

7. Pharmaceuticals: The pharmaceutical industry relies on EDI for electronic ordering and invoicing, product catalogs, and tracking of drug shipments.

8. Energy and Utilities: EDI is used in the energy and utilities sector for activities such as electronic billing, meter data management, and energy trading.

9. Insurance: Insurance companies utilize EDI for policy administration, claims processing, and premium payments.

10. Government and Public Sector: Government agencies and public sector organizations employ EDI for procurement, invoicing, and financial transactions.

11. Telecommunications: The telecommunications industry utilizes EDI for activities like order management, provisioning, and billing.

12. Food and Beverage: EDI is commonly used in the food and beverage industry for supply chain management, order processing, and invoicing

The Benefits of Commport's EDI

The Benefits of EDI

Basically, any type of business that deals with large amounts of identical paperwork/form data can directly benefit from adopting an EDI solution. The benefits over using a paper system are clear:

  • immense savings in time
  • significant cost savings
  • reduced drain on resources overall
  • reduced error rates in data transfer (we almost want to say 'eliminate' here!)
  • improved security of data being transferred
  • reliability - you can have confidence that data is reaching its destination

Plus, with electronic transfer of data, the likelihood of typographical errors decreases, as does the increase in time having to verify orders that have been filled out by someone with poor handwriting. It all adds up.

Security of information is critical. The adoption of EDI infrastructure is also largely due to the convenience and the security of EDI. EDI used over a VAN (Value Added Network) is an even more secure way to ensure the data is reaching its destination and is being managed properly.

A retailer attempting to implement a “just-in-time” inventory philosophy (that is, cutting down on overstocked inventory and replacing inventory in demand) would do well to implement an EDI solution.

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Ready to find out more about commport's EDI?

Drop us a email today at sales@commport.com for a free demo! You can also call us at  905-727-6782