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.