EDI stands for Electronic Data Interchange, a system that allows businesses to exchange documents electronically in a standardized format. This blog is about the understanding of EDI standards, structure, messages, mapping, and communications.
One of the keys to exchanging EDI documents or messages lies in communication.
EDI protocols are the technologies or software that enable the secure and standardized exchange of data between different computer systems. Both parties must use the same protocol to communicate, unless they use a VAN.
There are several EDI communication protocols. Some are adapted to the particular needs of an industry, meeting the security, non-repudiation, traceability, and integration requirements for the exchange of structured EDI transactions between two business partners.
These are some of the most commonly used communication protocols in EDI:
An EDI trading partner is a business or entity that exchanges data through electronic data interchange (EDI) with another business or entity. Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents in a standard electronic format between business partners.
EDI trading partners can use different communication protocols and EDI standards to automate business processes and trade more effectively. EDI trading partners may have different codes or identifiers for their addresses or locations, which need to be converted or mapped between the sender and the receiver.
EDI Trading Partners will be doing the in-house EDI operations or connecting with industry EDI Providers. EDI Trading Partners will be exchanging business documents based on their industries, like Retail, Manufacturing, Logistics, automobiles, etc.
Electronic Data Interchange (EDI)is the process of sending and receiving electronic business documents between companies, securely.
Many businesses demand that their business partners be EDI capable and EDI standard compliant. To satisfy customer needs, increase staff productivity, and streamline the supply of goods and services, EDI integration is crucial today. The truth is that EDI Solutions are made to increase security for your company by limiting who has access to data.
Companies may assure compliance with regulations in international trade by using EDI to share data securely across a wide range of communication protocols and security standards. Additionally to safeguarding confidential company information, this expedites the distribution of papers that are required for business operations.
Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents in a standard electronic format between business partners
Computer to Computer
Business Documents
Standard Format
Business Partners
Computer-to-Computer EDI replaces postal mail, fax and email. A typical manual process is like with lots of paper and people involvement.
EDI documents can flow straight through to the appropriate application on the receiver’s computer and processing can begin immediately. The EDI process is like with no paper, no people involved
Business Documents are typically exchanged between businesses. The most common documents exchanged via EDI are
Purchase Orders
Invoices
Advance Ship Notices
Many others such as bill of lading, customs documents, inventory documents, shipping status documents and payment documents
A Standard Format must be used so that the computer will be able to read and understand the documents. A standard format describes what each piece of information is and in what format (e.g., integer, decimal, mmddyy). There are several EDI standards in use today, including
ANSI
EDIFACT
TRADACOMS
VDA
ROSETTANET
When two businesses decide to exchange EDI documents, they must agree on the specific EDI standard and version. Businesses typically use an EDI translator — either as in-house software or via an EDI service provider to translate the EDI format.
The Exchange of EDI documents is typically between two different companies, referred to as Business Partners or trading partners. For example,
Company A may buy goods from Company B.
Company A sends orders to Company B. Company A and Company B are business partners
