EDI (Electronic Data Interchange)
A standardized format for exchanging business documents — load tenders, invoices, status updates — directly between two companies' systems without manual re-entry.
How it works — and why it matters
In practice, a broker's system generates a load tender as an EDI 204 document, transmits it over a VAN or a direct AS2 connection, and the carrier's TMS ingests it automatically — no email, no phone call, no re-keying. The X12 standard defines the exact field layout for each transaction set, so both sides parse the same document the same way every time.
EDI remains the backbone of shipper-carrier communication in North American freight. Large shippers commonly require EDI compliance as a condition of doing business, and a carrier's ability to exchange 204s, 214s, and 210s cleanly directly affects tender volume, payment speed, and scorecard performance.
Related terms
See it in practice: Tranzactor — the integration engine for TMS, telematics & more →