Understanding the EDI Workflow

An EDI (Electronic Data Interchange) workflow is the automated process that enables businesses to exchange documents (like Purchase Orders, Invoices, ASNs, etc.) electronically, without manual intervention.

It defines how an EDI document:

1. Is generated

2. Is sent to a trading partner

3. Is received

4. Is processed by the receiving system (ERP or other)

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Typical EDI Workflow (Step-by-Step)

1. Data Creation

• A user enters an order in their ERP system (like SAP, Oracle, etc.)

• This triggers the generation of an EDI document (e.g., 850 = Purchase Order)

2. Outbound EDI Mapping

• Internal ERP data is mapped to the EDI format (X12, EDIFACT, etc.)

• This mapping is handled by the EDI translator or middleware (like Cleo, IBM Sterling, BizTalk)

3. Transmission

• The EDI document is sent to the trading partner using a communication method like:

  • AS2

  • FTP/SFTP

  • VAN (Value-Added Network)

  • OFTP2

  • API (modern hybrid EDI)

4. Inbound Processing

• The trading partner receives the EDI document

• It’s translated into their internal format and processed into their ERP system

5. Acknowledgment (optional)

• An EDI 997 or CONTRL file is sent back to acknowledge receipt of the document

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Tools That Manage EDI Workflows:

• Cleo Integration Cloud (CIC)

• IBM Sterling B2B Integrator

• OpenText

• MuleSoft

• Boomi

• SAP PI/PO (for SAP customers)

Understanding about Direct EDI and Web EDI

Direct EDI (Point-to-Point EDI):

Direct EDI is when two trading partners connect directly with each other to exchange EDI documents without any intermediaries.

How it works:

• Uses protocols like AS2, FTP, SFTP, VAN, or OFTP.
• Requires integration with internal ERP systems.
• Documents flow machine-to-machine, often in real-time.

Advantage:

• Fast, reliable, and secure.
• Full control over EDI communication.
• Best for high-volume trading partners.

Disadvantage:

• Requires technical expertise to manage connections.
• More expensive to set up and maintain.
• Complex when you have many partners (requires multiple point-to-point connections).

Best for:
Large enterprises with a lot of EDI transactions and dedicated IT resources.

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Web EDI:

Web EDI is a cloud-based or browser-accessible tool that lets companies send and receive EDI documents using a web interface – no need for complex software or infrastructure.

How it works:

• Suppliers or partners log into a web portal.
• They fill out forms or upload/download EDI documents (like PO, ASN, Invoice).
• The portal translates the form into standard EDI format and transmits it.

Advantage:

• Low cost, easy to implement.
• No special software needed – just a web browser.
• Good for small and medium businesses (SMBs).

Disadvantage:

• Not fully automated (some manual effort involved).
• Slower than direct integration.
• Limited customization.

Best for:
Small vendors or suppliers who don't have an internal EDI system.

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Summary Table:

Feature	Direct EDI	Web EDI
Setup Cost	High	Low
Technical Knowledge	Required	Minimal
Automation	Full	Partial (Manual steps involved)
Speed	Fast (Real-time)	Slower (Manual input)
Best For	Large enterprises	Small/medium suppliers