How to Onboard a Trading Partner in 7 Steps

Trading partner onboarding is a critical part of EDI integration. 

It ensures your business can exchange documents like purchase orders, invoices, and shipping notices smoothly and reliably. 

A well-planned onboarding process reduces errors, delays, and partner frustration.

Here are the steps to onboard a new trading partner.

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Step 1: Collect Partner Requirements

Before you start, gather all trading partner specifications:

• Supported EDI standards (X12, EDIFACT, TRADACOMS)

• Communication method (AS2, SFTP, VAN, API)

• Document types and versions (850, 855, 856, 810)

• Business rules (mandatory fields, code lists, file naming conventions)

Note: Ask for a partner Implementation Guide (IG)—it contains all details needed for setup.

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Step 2: Set Up Communication Channels

Configure the secure method to send and receive EDI files:

• AS2: Secure, real-time protocol with MDN

• SFTP/FTPS: Batch transfer method

• VAN: Value Added Network for managed routing

• API: Real-time JSON/XML exchange (if supported)

Note: Test connectivity before moving to production.

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Step 3: Map Your ERP Data to EDI Documents

• Identify which ERP fields map to which EDI segments

• Apply partner-specific rules for:

  • SKU/Item codes

  • UOM (Units of Measure)

  • tax codes

  • Freight charges

• Use an EDI mapping tool like Cleo Studio, OpenText/GXS Application Integrator, IBM Sterling Map Editor etc.

Note: Maintain a mapping specification document for future reference.

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Step 4: Validate and Test EDI Files

• Generate sample EDI files from ERP or test system

• Validate against:

  • Partner format rules

  • Mandatory segments

  • Control numbers and hierarchies

• Send test files to the partner and get feedback

Note: Include both positive and negative test cases (valid and invalid scenarios).

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Step 5: Coordinate Testing with Trading Partner

• Partner performs system-to-system testing

• Verify:

  • Receipt of documents (997 for X12)

  • Data correctness (PO acceptance, ASN details, Invoices)

  • Communication reliability (timeouts, retries)

• Resolve errors collaboratively

Note: Document all changes for audit purposes.

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Step 6: Production Cutover

• Schedule go-live with both internal and partner teams

• Send first production EDI files under monitoring

• Monitor:

  • Acknowledgments

  • File delivery and parsing

  • ERP posting success

• Validate all the documents which is generated first

Note: Have a rollback plan if something fails.

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Step 7: Post-Go-Live Support & Continuous Monitoring

• Monitor EDI dashboards daily

• Resolve rejections, duplicates, or control errors quickly

• Update mappings if the partner changes requirements

• Keep communication lines open for smooth collaboration

Note: Periodic audits ensure compliance and reduce chargebacks.

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Summary

Trading partner onboarding is more than just sending files—it’s about building a reliable, automated, and compliant business connection. Following these 7 steps ensures your EDI integration is smooth, reduces errors, and strengthens your partner relationship.

Common EDI Interview Questions

 1. A trading partner says they did not receive your EDI 850. What will you do?

Answer:

• Check outbound EDI logs

• Verify AS2/SFTP transmission status

• Look for 997 or MDN

• Re-send only if no acknowledgment received

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2. You received a 997 with AK3/AK4 errors. What does that mean?

Answer:

• Structural or segment-level error

• Check which segment and element failed

• Correct mapping or data and resend

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3. An ASN (856) is rejected but invoice (810) is accepted. Why?

Answer:

• ASN has stricter hierarchy rules

• Pack, item, or shipment loops missing

• Partner validates 856 more strictly

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4. Control numbers are duplicated. What will happen?

Answer:

• Partner rejects the file

• Risk of duplicate processing

• Must reset or sync control numbers

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5. A customer says invoice amount is wrong. How do you troubleshoot?

Answer:

• Compare ERP vs EDI

• Check price, quantity, tax, freight

• Validate mapping and rounding rules

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6. What do you do if AS2 MDN is not received?

Answer:

• Check outbound status

• Verify partner server

• Retry or switch to async MDN

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7. How do you onboard a new trading partner?

Answer:

• Collect partner specifications

• Setup communication

• Build mapping

• Test documents

• Get go-live approval

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8. How do you handle a failed cutover?

Answer:

• Stop production flow

• Roll back to old system

• Fix issues

• Re-test and re-deploy

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9. What causes duplicate EDI documents?

Answer:

• File resubmission

• Network failure

• Missing duplicate check

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10. What is the difference between 997 and 855?

Answer:

• 997 = technical receipt

• 855 = business acceptance

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11. A partner changes their EDI version. What must you do?

Answer:

• Update mapping

• Test all documents

• Validate backward compatibility

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12. Why does EDI succeed but ERP posting fails?

Answer:

• Master data mismatch

• Invalid SKU, GLN, or customer code

• ERP validation errors

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13. How do you prevent EDI chargebacks?

Answer:

• Validate ASN, invoice, ship dates

• Monitor rejections

• Follow partner rules

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14. What Middleware tools and protocols you know?

Typical answer:

• Cleo, OpenText, IBM Sterling, SAP PI/PO, CPI

• AS2, SFTP, VAN, FTP

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15. How do you monitor production EDI?

Expected answer:

• Dashboards

• Error alerts

• Acknowledgment tracking

Common EDI Errors and How to Fix Them

Even well-designed EDI systems can fail due to data issues, partner rules, or communication problems. Understanding common EDI errors and how to fix them helps reduce downtime, chargebacks, and partner frustration. 

1. Missing or Invalid Mandatory Segments

Error:
Required segments (BEG, PO1, ST, SE, BGM, LIN, etc.) are missing or incomplete.

Reason:

• Incorrect mapping

• ERP source data missing

• Partner-specific rules ignored

How to Fix:

• Validate EDI against partner implementation guides

• Add pre-validation checks before transmission

• Ensure ERP mandatory fields are populated

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2. Incorrect Control Numbers (ISA/GS/ST)

Error:
Duplicate or out-of-sequence control numbers cause rejection.

Reason:

• Control numbers not incremented correctly

• Multiple systems sending files

• Manual file reprocessing

How to Fix:

• Centralize control number management

• Never reuse control numbers

• Reset numbers only with partner approval

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3. Segment Terminator & Delimiter Issues

Error:
Partner cannot parse the EDI file.

Reason:

• Wrong delimiters used

• Special characters in data

• Incorrect ISA settings

How to Fix:

• Confirm delimiters during partner setup

• Escape or clean special characters

• Keep ISA segment consistent

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4. Code & Qualifier Validation Failures

Error:
Invalid codes (UOM, currency, qualifiers).

Reason:

• ERP values don’t match partner code lists

• Missing code translation

How to Fix:

• Maintain code cross-reference tables

• Validate codes during mapping

• Align ERP master data with partner requirements

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5. Functional Acknowledgment (997 / CONTRL) Errors

Error:
997 shows rejection or partial acceptance.

Reason:

• Structural errors

• Missing mandatory segments

• Incorrect hierarchy

How to Fix:

• Always analyze AK3/AK4 segments

• Fix structure before resending

• Never ignore 997 rejections

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6. Trading Partner-Specific Rule Violations

Error:
File passes standard validation but fails partner checks.

Reason:

• Partner-specific mandatory fields missing

• Incorrect packaging or hierarchy

• Version mismatch

How to Fix:

• Follow partner implementation guides strictly

• Maintain partner-specific mappings

• Version control all changes

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7. Communication & Connectivity Errors

Error:
Files not sent or received.

Reason:

• AS2 certificate expired

• SFTP password changed

• Network issues

How to Fix:

• Monitor certificate expiry dates

• Automate connectivity health checks

• Maintain backup communication methods

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8. Duplicate Transactions

Error:
Same document processed multiple times.

Reason:

• Resending files without control checks

• No duplicate detection logic

How to Fix:

• Use control numbers & document IDs

• Implement duplicate detection

• Confirm partner receipt before resending

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9. Data Mismatch Between EDI & ERP

Error:
Totals, quantities, or prices don’t match.

Reason:

• Incorrect mapping logic

• Decimal or rounding issues

How to Fix:

• Reconcile ERP vs EDI data

• Apply rounding rules consistently

• Validate totals before sending

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10. Failed or Incomplete Testing

Error:
Issues appear after go-live.

Reason:

• Incomplete scenario testing

• Skipped negative testing

How to Fix:

• Test all document types

• Perform volume & negative testing

• Get partner sign-off before go-live

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Best Practices to Avoid EDI Errors

• Monitor EDI transactions daily

• Maintain strong documentation

• Automate validations and alerts

• Keep partner communication clear

• Perform periodic audits

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Summary

Most EDI errors are preventable with proper validation, monitoring, and partner alignment. A proactive approach reduces downtime, avoids penalties, and builds strong trading partner relationships.

Mastering error handling is what separates a junior EDI analyst from a senior EDI consultant.

What Does an EDI Consultant Do? Roles, Skills & Career Path

An EDI Consultant plays a critical role in helping businesses exchange data automatically with their trading partners. They act as the bridge between business processes, ERP systems, and EDI technologies, ensuring smooth, secure, and compliant data flow.

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An EDI Consultant is responsible for:

• Designing EDI solutions

• Implementing and maintaining EDI integrations

• Supporting trading partner onboarding

• Troubleshooting EDI issues

They work closely with business users, ERP teams, trading partners, and third-party EDI providers.

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Key Roles & Responsibilities

1. EDI Implementation

• Analyze business and partner EDI requirements

• Configure EDI standards (X12, EDIFACT, TRADACOMS)

• Set up communication protocols (AS2, OFTP2, SFTP, FTP, VAN)

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2. EDI Mapping & Translation

• Map ERP data to EDI formats and vice versa

• Apply partner-specific rules and validations

• Maintain mapping documentation

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3. Trading Partner Onboarding

• Coordinate testing with new trading partners

• Manage partner profiles and connectivity

• Ensure compliance with partner guidelines

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4. EDI Monitoring & Support

• Monitor daily EDI transactions

• Resolve failures, rejects, and data errors

• Handle acknowledgments (997, CONTRL)

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5. Testing, Cutover & Go-Live

• Perform unit, integration, and end-to-end testing

• Execute production cutover activities

• Support post-go-live stabilization

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Skills Required to Become an EDI Consultant

Technical Skills

• EDI standards: ANSI X12, EDIFACT

• EDI tools: Cleo, OpenText, IBM Sterling, MuleSoft, Boomi

• Communication: AS2, SFTP, OFPT2, FTP, VAN

• File formats: Flat file, XML, CSV, JSON

• Basic scripting (Python, Shell) – added advantage

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Business & Soft Skills

• Understanding of supply chain & order-to-cash process

• Strong analytical and troubleshooting skills

• Clear communication with business & partners

• Documentation and attention to detail

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Daily Life of an EDI Consultant (Example)

• Monitor EDI dashboards for failures

• Analyze rejected transactions

• Coordinate with trading partners

• Update mappings or partner specs

• Support business users during peak loads

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Career Path in EDI

Entry-Level

• EDI Analyst

• Integration Support Analyst

Mid-Level

• EDI Consultant

• Senior EDI Analyst

Senior-Level

• Lead EDI Consultant

• Integration Architect

• B2B Integration Manager

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Why EDI Is a Strong Career Choice

• Long-term demand (EDI isn’t going away)

• Used across retail, healthcare, logistics, manufacturing

• Combines technology + business knowledge

• High responsibility and visibility role

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EDI vs API – Skill Expansion

Modern EDI Consultants often expand into:

• API integrations

• Cloud iPaaS platforms

• Hybrid EDI + API solutions

This makes the role future-proof.

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Summary

An EDI Consultant is more than a technical role—it’s a problem-solving, integration, and business-enabling position. With the right skills and experience, it offers stability, growth, and global opportunities.

For anyone starting or growing in integration technology, EDI is a powerful and rewarding career path.

How EDI Works: From ERP to Trading Partner (Step-by-Step)

Electronic Data Interchange (EDI) connects two businesses by allowing their systems to exchange documents automatically—without emails, PDFs, or manual data entry. Let’s walk through the complete journey of an EDI document, from ERP to trading partner, in simple steps.

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Step 1: Business Transaction Created in ERP

• A business event occurs in the ERP system (SAP, Oracle, NetSuite, etc.)

• Example: A buyer creates a Purchase Order

• The ERP stores data like item, quantity, price, ship-to address

Note: This is raw business data, not yet EDI

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Step 2: Data Extracted from ERP

• Relevant data is picked from ERP tables or flat files

• Extraction happens via IDoc, XML, CSV, or database query

• Only required fields are selected based on trading partner rules

Note: ERP data is prepared for EDI translation

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Step 3: Data Translated into EDI Format

• EDI translator converts ERP data into standard EDI format

• Common formats: X12 (850, 855, 856, 810) or EDIFACT (ORDERS, ORDRSP, DESADV, INVOIC)

• Partner-specific mapping rules are applied

Note: Business data becomes an EDI document

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Step 4: Validation & Compliance Check

• EDI file is validated against standards and partner rules

• Checks include:

  • Mandatory segments

  • Correct codes and qualifiers

  • Control numbers

Note: Invalid files are rejected before transmission

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Step 5: Secure Transmission to Trading Partner

• The validated EDI file is sent using an agreed method:

  • AS2

  • SFTP

  • VAN

  • API

  • FTP

  • OFTP2

• Security features include encryption and authentication

Note: File is securely delivered

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Step 6: Functional Acknowledgment (997/CONTRL)

• Trading partner sends acknowledgment confirming receipt

• Confirms file structure, not business acceptance

• Helps ensure no data is lost

Note: Sender knows the file arrived successfully

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Step 7: Trading Partner Receives & Translates

• Partner’s EDI system receives the file

• EDI is translated back into their internal format

• Data is mapped into their ERP system

Note: EDI becomes usable business data again

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Step 8: Business Processing in Partner ERP

• Partner’s ERP processes the transaction automatically

• Example actions:

  • PO creation

  • Shipment planning

  • Invoice matching

Note: No human intervention required

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Step 9: Response EDI Document Sent Back

• Partner sends a response document:

  • 855 (PO Acknowledgment)

  • 856 (ASN)

  • 810 (Invoice)

• Same EDI flow repeats in reverse direction

Note: Two-way automated communication

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Simple Real-World Flow Example

1. Buyer sends EDI 850 → Purchase Order

2. Supplier sends EDI 855 → Order confirmation

3. Supplier sends EDI 856 → Shipment details

4. Supplier sends EDI 810 → Invoice

5. Buyer sends EDI 820 → Payment

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Why This Flow Matters

• Eliminates manual data entry

• Reduces errors and delays

• Enables real-time supply chain visibility

• Scales easily for high transaction volumes

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Summary

EDI works like a digital conveyor belt—moving business data smoothly from one ERP system to another. Once set up, it runs silently in the background, powering global trade every second.

Understanding this flow is the foundation for learning EDI mapping, testing, troubleshooting, and integration projects.

Top 10 most commonly used EDI documents

Electronic Data Interchange (EDI) enables businesses to exchange documents electronically in a standardized format. While there are hundreds of EDI message types, a small set of documents powers most real-world supply chains.

Below are the Top 10 most commonly used EDI documents,

1. EDI 850 – Purchase Order

• Sent by the buyer to place an order for goods or services

• Contains item details, quantities, prices, and delivery dates

• Example: A retailer orders 500 medical gloves from a supplier

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2. EDI 855 – Purchase Order Acknowledgment

• Sent by the supplier to confirm receipt of the PO

• Indicates accepted, rejected, or changed order details

• Example: Supplier confirms 500 gloves will be shipped by Friday

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3. EDI 856 – Advance Ship Notice (ASN)

• Sent before the shipment leaves the warehouse

• Includes carton, pallet, and tracking details

• Example: Supplier informs retailer that the order is shipped via FedEx

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4. EDI 810 – Invoice

• Sent by the supplier to request payment

• Contains invoice number, amounts, taxes, and terms

• Example: Supplier sends invoice after shipping the gloves

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5. EDI 997 – Functional Acknowledgment

• Confirms receipt of an EDI document

• Validates structure, not business content

• Example: Buyer confirms receiving the supplier’s invoice file

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6. EDI 820 – Payment Order / Remittance Advice

• Used to send payment details electronically

• Includes payment amount and invoice references

• Example: Retailer sends payment confirmation for the invoice

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7. EDI 846 – Inventory Inquiry / Advice

• Shares current inventory availability

• Helps buyers plan orders

• Example: Supplier sends stock levels for medical devices

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8. EDI 940 – Warehouse Shipping Order

• Instructs a warehouse to ship goods

• Common in third-party logistics (3PL)

• Example: Retailer requests warehouse to ship customer orders

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9. EDI 945 – Warehouse Shipping Advice

• Confirms shipment from the warehouse

• Includes shipped quantities and tracking info

• Example: Warehouse confirms items are shipped

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10. EDI 204 – Motor Carrier Load Tender

• Used to request transportation services

• Includes pickup, delivery, and freight details

• Example: Shipper assigns a truck to move goods to a distribution center

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Summary:

These EDI documents form the core business flow—from ordering to shipping to payment. Mastering them gives you a strong foundation in EDI integration, supply chain, and automation.

What is EDI? A Beginner’s Guide to Electronic Data Interchange

What is EDI?

Electronic Data Interchange (EDI) is the automated exchange of business documents between two companies in a standardized electronic format.

Instead of sending Purchase Orders, Invoices, or Shipping Notices through email or paper, EDI allows businesses to send them system-to-system, saving time, reducing errors, and speeding up operations.

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Why Do Companies Use EDI?

1. Faster Communication

A Purchase Order that might take hours or days via email or post can be transmitted in seconds using EDI.

2. Fewer Errors

Since the data flows directly between systems, there is no manual typing, reducing mistakes like wrong quantities or incorrect addresses.

3. Cost Savings

EDI eliminates paper, printing, postage, and manual labor. Companies save 30–70% in transaction processing costs.

4. Stronger Business Relationships

Retailers, distributors, manufacturers, and logistics companies prefer suppliers who support EDI.
Many big companies—like Amazon, Walmart, Costco—require EDI for doing business.

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How EDI Works (Simple Explanation)

EDI follows three main steps:

Step 1 — Data Extraction

Your system generates business data.
Example: A Purchase Order created in your ERP.

Step 2 — Data Transformation

The data is converted into a standard EDI format (such as X12 or EDIFACT).

Step 3 — Data Transmission

The EDI file is securely sent to your trading partner using communication methods like:

• AS2

• SFTP

• FTP

• OFTP2

• API

• VAN (Value Added Network)

The receiving system automatically reads and processes the document.

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Common EDI Documents

EDI 850 - Purchase Order
EDI 855 - PO Acknowledgment
EDI 856 - Advance Ship Notice (ASN)
EDI 810 - Invoice
EDI 820 - Payment Order
EDI 846 - Inventory Inquiry

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EDI Standards You Should Know

1. ANSI X12 (North America)

Used by U.S. retailers, logistics companies, and healthcare (HIPAA).

2. EDIFACT (Global)

Used in Europe, Asia, and international logistics.

3. TRADACOMS (UK Retail)

Older standard, still used by some UK supermarkets.

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EDI Communication Methods

AS2 - Secure, real-time communication. Very common for retail.

SFTP - Simple, secure file transfer.

FTP/FTPS - Older methods, still used by some partners.

VAN - A private network that routes EDI messages.

API - Modern alternative to EDI; sending JSON/XML instead of flat files.

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Who Uses EDI?

EDI is widely used in:

• Retail (Amazon, Walmart, Target)

• Healthcare (Hospitals, insurance companies)

• Logistics & Transportation

• Manufacturing

• Automotive (Honda, Ford)

• Food & Beverage

• Pharmaceuticals

• Government agencies

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Benefits of Learning EDI (For Professionals)

• High demand skill

• Great career opportunities (EDI Analyst, EDI Consultant, Integration Specialist)

• Used in SAP, Oracle, Cleo, OpenText, MuleSoft, Boomi

• Growing with API + EDI hybrid solutions

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Summary

EDI is the digital backbone of global trade, connecting businesses and making transactions faster, cheaper, and error-free. Even with modern APIs, EDI continues to be essential in supply chain, retail, logistics, and healthcare.

If you are a beginner, understanding the basics of EDI is the first step toward exploring integration, automation, and digital transformation in businesses.