Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard electronic business documents between business partners, replacing traditional paper exchange. EDI eliminates manual formatting and rekeying of data, reducing time and effort. EDI documents must follow defined standards to prevent errors. Common EDI standards include ANSI, EDIFACT, and TRADACOMS. Implementing EDI requires mapping data elements and segments, testing transactions, and integrating EDI into business processes and systems. Challenges of EDI include changing business needs, scaling, cost, security, and managing different standards and integrations.
Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard electronic business documents between business partners, replacing traditional paper exchange. EDI eliminates manual formatting and rekeying of data, reducing time and effort. EDI documents must follow defined standards to prevent errors. Common EDI standards include ANSI, EDIFACT, and TRADACOMS. Implementing EDI requires mapping data elements and segments, testing transactions, and integrating EDI into business processes and systems. Challenges of EDI include changing business needs, scaling, cost, security, and managing different standards and integrations.
Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard electronic business documents between business partners, replacing traditional paper exchange. EDI eliminates manual formatting and rekeying of data, reducing time and effort. EDI documents must follow defined standards to prevent errors. Common EDI standards include ANSI, EDIFACT, and TRADACOMS. Implementing EDI requires mapping data elements and segments, testing transactions, and integrating EDI into business processes and systems. Challenges of EDI include changing business needs, scaling, cost, security, and managing different standards and integrations.
Electronic Data Interchange (EDI) is the computer-to-computer exchange of standard electronic business documents between business partners, replacing traditional paper exchange. EDI eliminates manual formatting and rekeying of data, reducing time and effort. EDI documents must follow defined standards to prevent errors. Common EDI standards include ANSI, EDIFACT, and TRADACOMS. Implementing EDI requires mapping data elements and segments, testing transactions, and integrating EDI into business processes and systems. Challenges of EDI include changing business needs, scaling, cost, security, and managing different standards and integrations.
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Learning Diary 5
Kumar Ravi Section A | 129
What is EDI? Electronic Data Interchange (EDI) is the computer to computer exchange of business documents in a standard electronic format between business partners. It replaces the traditional paper exchange of documents of business and hence flows faster than the traditional paper format from application of one business to the other. It also eliminates the manual work involving with formatting and rekeying of data and hence brings down the time and effort required sharply down. These documents range from purchase orders, to quotations to loan applications. The connected business are frequent exchanging data amongst each other. TRADITIONAL METHOD
1|Page EDI process
As EDI documents are meant to processed by the computer they have to follow certain defined standards to prevent error and miscommunication. There are several organizations that define the EDI message standards, including ODETTE, TRADACOMS, GS1, PEPPOL and the Accredited Standards Committee X12 (ASC X12). The common EDI standards which are in use today are ANSI, EDIFACT, TRADACOMS and ebXML. When businesses choose to employ EDI to exchange documents they have to agree upon using specific EDI standard and their version. All EDI transactions are defined by EDI message standards. Hence, It is important to have good governance processes for data quality. When information is missing or in the wrong place, the EDI document might not be processed correctly. In general, EDI transmissions can be broken down into two basic types: Point-to-point or direct connections. Two computers or systems connect with no intermediary over the internet, generally with secure protocols. Value-added network (VAN). A third-party network manages data transmission, generally with a mail boxing paradigm. EDI internet transmission protocols include Secure File Transfer Protocol (SFTP), Applicability Statement 2 or AS2, an HTTPS-based protocol, Simple Object Access Protocol (SOAP) and others. EDI data is made up of data elements such as sender ID and receiver ID. Data segments combine two or more related elements to give them greater meaning, FNAME and LNAME can combine to form CUSTOMERNAME for example. Envelopes structure different types of data and carry the sender and receiver address information.
2|Page EDI document flow or message flow describes the movement of EDI messages to various inbound and outbound addresses and departments to execute a business process or transaction.
Process of Implementing EDI
The requirements for implementing EDI are as follows:
EDI Transformation and Translation EDI Mapping and Implementation EDI Testing Transaction Lifecycle Management EDI Integration Document Management Order Management Reporting & Analytics Deployment Environment Database Support
Challenges Technology limitations Difficulty in meeting changing business requirements Scaling your EDI Implementing in-house EDI can be quite expensive Incompatible internal reference values Missing details on returned documents Lack of interoperability, flexibility, and scalability Managing variety of integrations is difficult Too many standards Cost or service concerns Security Concerns
