What is electronic data interchange (EDI) primarily used for?

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Electronic Data Interchange (EDI) is primarily used for computer-to-computer data transfer, which facilitates the seamless exchange of business documents between organizations in a standardized electronic format. This method allows companies to automate their processes, increase efficiency, and reduce errors associated with manual data entry. EDI typically involves reconciling transactions like purchase orders, invoices, and shipping notices directly between the systems of the connected parties, enabling real-time updates and tracking.

This is distinct from other options. Direct consumer marketing involves communication strategies aimed at end-users rather than businesses. Cloud storage services refer to the online storage of data but do not inherently provide a mechanism for structured data exchange like EDI. Email communication is a human-mediated process, whereas EDI automates exchanges between systems with minimal human intervention, focusing specifically on electronic formats suitable for business processes.

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