ELECTRONIC DATA
INTERCHANGE
Pankaj Thapa
[email protected]
m
Meaning
Electronic Data Interchange (EDI) refers to the
structured transmission of data between
organizations by electronic means.
A way to exchange transcripts (and other
important data) without paper.
The National Institute of Standards and Technology
in a 1996 publication defines Electronic Data
Interchange as "the computer-to-computer
interchange of strictly formatted messages that
represent documents other than monetary
instruments.
EDI can be transmitted using any methodology
agreed to by the sender and recipient. This
includes a variety of technologies, including
modem (asynchronous, and bisynchronous), FTP,
Email, HTTP, AS1, AS2, etc
Working of EDI
1. Exchange of data with several trading
partners directly in a standard format.
2.
Interaction with multiple companies
through a central information clearing
house. Here each companies add EDI
program to its computer to translate the
company data into standard formats for
transmission,
and
for
reverse
translation in the data.
Working of EDI cont
Supplier
One to Many
Manufacture
Supplier
Supplier
One to Many
Manufacture
Manufacture
Manufacture
Supplier
Third
Party
Vendor
Supplier
Supplier
EDI Business Cycle
Vendors
Company XYZ
tin
s
e
Notes, Documents,
Images, Letters,
Purchase Orders,
Invoice, Queries,
Order Entry,
Shipment Details,
Payment Orders,
Bankers Advice,
Miscellaneous claims.
Computer
with EDI
software
n
io
t
a
n
D
tio
I
a
n
ED
sti
e
ID
ED
on
tinati
s
e
D
ED I
EDI Service
Network
EDI Destination
ED I
ED
De s
ID
tinat
ion
es
ED
t in
ati
ID
on
es
t in
at
io
n
Customer
s
Branch
Office
Distributor
s
Stores
Banks
Transporters
Processing of EDI message
External
User
Interface
External
User
Interface
Applicatio
n
Applicatio
n
Translatio
n
Services
Translatio
n
Services
EDI
Service
EDI
Service
Network
Access
Control
EDI Service
Network
Network
Access
Control
Benefits of EDI
Generation of a paper document on a form by
software application.
Delivery of a few copies of document to the
internal dept to be filed and others to the trade
partners via postal service.
Retyping the document received by the trading
partner on the form into their computers which
may offer introduce errors.
Generation of a paper acknowledgement and
sending it to the originating company.
Generation of a file containing the processed
document by the application program.
Benefits of EDI cont
Conversion of the document into agreed standard
format.
Electronic transmission of the file containing the
document over the network , which may link the
originating company and its trading partner.
Automatic generation of the receipt and its
delivery over the network to the originating
company.
Features of EDI
Exchange of structured business information
standard formats between computers.
in
It has reduced data entry link, eliminates the need for
a paper bases system and improved business cycle.
EDI
transfer structured business documents
internally among groups of departments or externally
with its suppliers, customers and subsidiaries.
In EDI, information transferred over a network will not
have to read, retyped or printed but must have
predefine structure agreed between the two
company's which send and receive data.
The two companies or groups which exchanged
information through EDI are called the Trading
Partners.
Components of EDI
There are 3 types of component
1. Application service
2. Translation service
3. Communication service
Components of EDI cont
Business
Application
Application
Service
Trading
Partner
Transmissio
n Service
Communicati
on Service
File Types
Edi creates following files as a document passes through the
system:
1. Internal format file (IFF):It contains single document for single trading partner.
2. External format file(EFF):It contains same data as the internal format file translated into
the appropriate standard document format.
3. Transmission file:it contains one or more document for the same trading partner.
Documents of same format are packed into an functional
groups. The functional groups going to one trading partner are
packaged into an interchanged set. An interchanged set. An
interchanged set contains one or more functional groups of
documents with the same sender and receiver.
EDI software
1.Translators:Every EDI sender and receiver should have EDI
translator. It varies based on the computer on which
it is going to reside. The computer may be a micro
computer or a midrange or a mainframe. Translator
reads the fixed length file and generates valid Edi
standard and maintains control information.
2.Application link software:There are 2 components of software, which is
generally used to link the existing
business
application to the EDI data. One is the translator and
the other is application link software . Application link
software is used to collect information from the
business application and then it formats into fixed
length computer file and passes it onto translators.
EDI services
1. Application Services :It provides the link between application and EDI.
It allows you to send documents from an EDI
system. The set of callable routine is used to
transfer document from the business application
into EDI document destination can be either
intra-company or to the external companies .
EDI services cont
File Server
Internal Format File
Document
Business
Application
Document
Callable
Routines
Management - Interface
Application
Service
Internal Format File
EDI services
2. Translation service:Converts the out going documents from an
internal format file to an agreed external format.
Translates internal document from external
format to EDI internal format file.
EDI Services cont
Translation Service
File Server
Internal Format
File
Internal Format
File
Transmission File
External Format File
External Format File
TFB
TFS
Transmission File
Management - Interface
Converter
TFB
Transmission file Builder
,
,
Translator
TFS
Transmission file Splitter
EDI Services cont
3. Communication service:The communication service sends and receives
transmission files to and from the trading
partners either directly or by using party service
called a valued added network(VAN).
EDI Services cont
Communication
Service
File Server
Transmission File
Transmission File
CC
Transmission File
Gateway 1
Gateway 1
Management - Interface
CC = Communication
Controller
Transmission File
EDI Standards
1.
Transaction set standards:These defines the procedural format and
content requirement for specified business
transactions. Eg: Purchase orders.
2. Data Dictionary And Segment Dictionary:These defines the precise content for data
content and data segment used in building
transaction sets.
3. Transaction control standard:These define the format s for the information
required to control the data interchange
Thank you
