Which term denotes the electronic transfer of business paperwork between companies?

Which term denotes the electronic transfer of business paperwork between companies?

• A. ERP
• B. EDI
• C. Packaging
• D. Reverse Logistics

Answer: (B)

Electronic data interchange is the standardized, computer-to-computer transfer of business documents between companies, such as purchase orders, invoices, and shipping notices. By using agreed formats and codes, systems can automatically read, validate, and process these documents without manual data entry, speeding up transactions and reducing errors across trading partners. This intercompany, structured exchange distinguishes it from internal systems, physical packaging, or processes focused on returns. ERP is about planning resources within a single organization, packaging refers to the physical container of goods, and reverse logistics deals with returning products and handling reverse flows.

Electronic data interchange is the standardized, computer-to-computer transfer of business documents between companies, such as purchase orders, invoices, and shipping notices. By using agreed formats and codes, systems can automatically read, validate, and process these documents without manual data entry, speeding up transactions and reducing errors across trading partners. This intercompany, structured exchange distinguishes it from internal systems, physical packaging, or processes focused on returns. ERP is about planning resources within a single organization, packaging refers to the physical container of goods, and reverse logistics deals with returning products and handling reverse flows.