Monday, 29 December 2025

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.

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.

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)

2. EDI Mapping & Translation

Map ERP data to EDI formats and vice versa
Apply partner-specific rules and validations
Maintain mapping documentation

3. Trading Partner Onboarding

Coordinate testing with new trading partners
Manage partner profiles and connectivity
Ensure compliance with partner guidelines

4. EDI Monitoring & Support

Monitor daily EDI transactions
Resolve failures, rejects, and data errors
Handle acknowledgments (997, CONTRL)

5. Testing, Cutover & Go-Live

Perform unit, integration, and end-to-end testing
Execute production cutover activities
Support post-go-live stabilization

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

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

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

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

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

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.

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.

Tuesday, 23 December 2025

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.

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

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

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

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

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

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

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

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

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

Simple Real-World Flow Example

Buyer sends EDI 850 → Purchase Order
Supplier sends EDI 855 → Order confirmation
Supplier sends EDI 856 → Shipment details
Supplier sends EDI 810 → Invoice
Buyer sends EDI 820 → Payment

Why This Flow Matters

Eliminates manual data entry
Reduces errors and delays
Enables real-time supply chain visibility
Scales easily for high transaction volumes

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.

Monday, 15 December 2025

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

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

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

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

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

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

7. EDI 846 – Inventory Inquiry / Advice

Shares current inventory availability
Helps buyers plan orders
Example: Supplier sends stock levels for medical devices

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

9. EDI 945 – Warehouse Shipping Advice

Confirms shipment from the warehouse
Includes shipped quantities and tracking info
Example: Warehouse confirms items are shipped

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

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.

Monday, 8 December 2025

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.

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.

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.

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

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.

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.

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

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

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.

Monday, 1 December 2025

The Hidden Costs of EDI: What Most Companies Don’t Talk About

When companies think of EDI, they imagine automation, faster transactions, fewer errors, and strong B2B relationships.

But behind the benefits, there are hidden costs that organizations rarely anticipate—and these can impact budgets, timelines, and operational efficiency if not planned properly.

Here are the real, often-overlooked costs that companies face in an EDI implementation.

VAN (Value-Added Network) Charges

Many large retailers and healthcare organizations still require communication through a VAN.

Hidden cost:

Monthly fees based on kilo-characters
Additional mailbox charges
“Pass-through” or interconnect fees when messages route across networks
Charges for test mailboxes

The cost depends on traffic volume, so invoices fluctuate and are often higher during seasonal surges.

Trading Partner Setup & Certification

Every trading partner has unique rules, including:

Mapping guidelines
Acknowledgement requirements
Connectivity protocols (AS2, SFTP, VAN)
Compliance testing

Hidden cost:

Paying for partner-specific testing
Re-certification when standards change
Additional cost for each new partner

Mapping & Maintenance Costs

Each EDI document needs mapping—850, 810, 856, 940, 945, 997, etc.

Hidden cost:

Time spent updating maps when a partner change guideline
Fees charged by EDI vendors for each mapping update
Re-mapping when migrating to new ERP or middleware
Cost of maintaining custom logic, scripts, and validations

Most companies underestimate how frequently mapping changes.

EDI Errors & Chargebacks

This is the most painful cost, especially in retail.

Chargebacks occur because of:

Missing ASN
Late ASN
Incorrect barcode
Quantity mismatches
Pricing errors
Duplicate invoices
Incorrect pack hierarchy (856 HL structure issues)

Hidden cost:
Retailer's fine suppliers anywhere from so and so per violation.

Infrastructure & Licensing Fees

If the EDI is on-premises or hybrid, the costs include:

Hardware servers
Database licenses
OS upgrades
Disaster recovery
Backup solutions
Middleware licensing (Cleo, Seeburger, Axway, SAP PI/PO, BizTalk)

Cloud EDI also has hidden charges like per-document or per-partner cost.

Support & Monitoring Costs

EDI isn’t “setup and forget.” It needs daily monitoring.

Hidden cost:

24x7 support team
Error handling and reprocessing
Message tracking and reconciliation
Holiday/weekend support during peak business cycles
SLA commitments

Many companies hire specialized EDI resources—adding to recurring operational cost.

Upgrades & Standards Changes

EDI standards evolve:

X12 version upgrades (4010 → 5010 → 6010)
EDIFACT directory changes
Retailer-specific guideline updates
Security upgrades (AS2 certificates, encryption algorithms)

Hidden cost:
Updating systems and performing regression testing.

API + EDI Hybrid Integration Costs

Modern retailers require API calls along with EDI (inventory APIs, shipment status APIs, label APIs).

Hidden cost:

Additional API licenses
Developing API connectors
Monitoring real-time traffic
New security procedures (OAuth2, JWT, certificates)

Migration Costs

Moving from:

One EDI provider to another
VAN to AS2
On-premises to Cloud
SAP ECC to S/4HANA
OpenText → Cleo (like your project)

Hidden cost:

Re-mapping all transactions
Re-certifying partners
Dual run during migration
Project management overhead

Summary

EDI delivers massive value—automation, accuracy, and speed.
But companies should be aware of the hidden costs that impact long-term operations.

When planned properly, these costs can be optimized and controlled using:

Cloud platforms
Automated monitoring
Unified integration tools
Strong governance processes
Modern API–EDI hybrid architecture