Electronic Data Interchange (EDI) is the automated exchange of business information between systems in a standardized format. EDI replaces manual document exchanges such as invoices, purchase orders, and shipment notifications with digital transactions, improving efficiency and accuracy. Many industries, including retail, healthcare, and manufacturing, rely on EDI to streamline operations. Integrating EDI with a CRM allows businesses to synchronize customer transactions, manage supplier relationships, and reduce processing errors. Platforms like IBM Sterling and SPS Commerce facilitate secure EDI communication, enhancing business collaboration.