Electronic Data Interchange (EDI) can be formally defined as, 'the transfer of structured data, by agreed message standards, from one computer system to another without human intervention'. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media. It goes on further to say that, in EDI, the usual processing of received messages is by computer only. Human intervention in the processing of a received message is typically intended only for error conditions, for quality review and for special situations. For example, the transmission of binary or textual data is not EDI as defined here unless the data is treated as one or more data elements of an EDI message & are not normally intended for human interpretation as part of on-line data processing. The EDI process provides many benefits. Computer-to-computer exchange of information is much less expensive than handling paper documents. EDI transactions between companies flow faster and more reliably than paper documents. Faster transactions support reduction in inventory levels, better use of warehouse space, fewer out-of-stock occurrences and lower freight costs through fewer emergency expedites.