EDIFACT stands for Electronic Data Interchange for Administration, Commerce, and Transport. It is a set of international standards developed by the United Nations to facilitate the electronic exchange of business documents between organizations. This standard helps streamline processes like ordering, invoicing, and shipping by providing a common format for data. The use of EDIFACT allows companies to improve efficiency and reduce errors in their transactions. By standardizing the way information is shared, businesses can communicate more effectively, leading to faster processing times and better collaboration across different sectors and countries.