Electronic Data Interchange (EDI) is the electronic interchange of business information using a standardized format. It is a system or method for exchanging business documents with trading partners, such as suppliers, customers, carriers, 3PLs, or other supply chain connections. EDI enables companies to exchange information electronically in a structured format, eliminating the need for manual data entry and reducing the cost and time associated with paper-based transactions. Many business documents can be exchanged using EDI, but the two most common are purchase orders and invoices. EDI replaces the mail preparation and handling associated with traditional business communication, and it standardizes the information communicated in business documents, which makes possible a "paperless" exchange. EDI can be used to exchange invoices electronically, reducing the time and cost associated with paper-based invoicing. It can also be used to exchange shipping notices and receiving documents, enabling companies to track the movement of goods in real-time, and to exchange inventory information, enabling companies to manage inventory more efficiently. EDI transactions are essential to B2B processes and continue to be the preferred means to exchange documents and transactions between businesses both small and large. EDI implementation is essential for sustained competitiveness and growth, and it can save a company time and money and make it a better business partner.