Electronic Data Interchange (EDI) is an automated system through which structured business documents are exchanged between organizations in a secure and reliable manner. EDI is widely used in procurement processes, as it helps to streamline the document exchange of data such as purchase orders, invoices, and shipping confirmations. By using this technology, companies can reduce manual effort and costs associated with traditional paper-based transactions. EDI also increases accuracy by eliminating paperwork errors caused by manual entry, resulting in improved customer service levels and faster processing of orders.