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