Explain the following: Electronic Data Interchange (EDI)

The contracts of Electronic Data Interchange commonly known as EDI Contracts are processed in cases that have virtually zero paper work. EDI contracts used in trade transactions which enables the transfer of data from one computer to another in such a way that each transaction in the trading cycle (for example, commencing from the receipt of an order from an overseas buyer, through the preparation and lodgement of export and other official documents, leading eventually to the shipment of the goods) can be processed with virtually no paperwork. In this system, there is exchange of information and completion of contracts between two computers almost akin to the contracts entered into by two human beings. In other words, EDI means transfer of (strictly) structured data, by agreed message standards, from one computer system to another without human intervention. Some of the benefits of EDI are cost saving, speed, accuracy, business efficiency, minimal paper usage, enhanced quality of data, improved turnaround times, improved timelines etc.