Organizations have traditionally relied on paper to conduct business transactions. Although proven to be an effective and convenient medium for this purpose, paper may no longer be the most efficient. Advances in computers, communication, and electronic technology have provided alternatives to this traditional way of conducting business transactions. One such concept is Electronic Data Interchange (EDI), which allows information to be processed faster, more accurately, and at a lower cost than similar manual, paper-based. processing systems. This thesis examines the application of EDI to Defense transportation operations and includes a discussion of data format standards, hardware, software, and communications requirements. The Defense transportation EDI operating concepts involve the linking of carriers, MTMC, defense shipping activities, and DoD finance centers, which allows the electronic exchange of business data such as Government bills of lading, freight rate tenders, and carrier payment information. EDI involves more than simply automating existing business documents and processes; when properly implemented, EDI is a catalyst for streamlining inefficient, redundant, and outdated business practices.