Professional Documents
Culture Documents
Rebecca Fouts Laura Frye Laura Gray Matt Muller Ariana Pelayo
Introduction to EDI
What is EDI?
Electronic Data Interchange is the computer-to-computer exchange of business data and documents between companies using standard formats recognized both nationally and internationally. The information used in EDI is organized according to a specified format set by both companies participating in the data exchange.
http://www.x12.org/x12org/about/faqs.cfm#a1
History of EDI
The general idea behind EDI was originated by a group of railroad companies in the mid-1960s, in the United States. Much of the early work on EDI was driven by the industry sectors for:
transportation pharmaceuticals groceries automobiles banking
www.edi-guide.com/edi-history.htm
History of EDI
It was not until the 1970s, when work began for national EDI standards. Both client and vendors input their requirements to create a set of standard data formats that
were hardware independent; were unambiguous and could be used by all trading partners; reduced labor-intensive tasks such as dataentry; allowed the sender of data to control the exchange including receipt confirmation of by the other party
www.gotedi.com/term_history.htm
Advantages of EDI
Lower operating costs Saves time and money Less Errors = More Accuracy No data entry, so less human error Increased Productivity More efficient personnel and faster throughput Faster trading cycle Streamlined processes for improved trading relationships
http://www.edi-guide.com/edi-benefits.htm
Disadvantages
High Dependence on the participation of trading partners Costly for smaller companies Difficult to agree on standard to be used
http://www.edi-guide.com/risks-of-edi.htm
Retailer A
Wholesaler A
Retailer B
Wholesaler B
Retailer C
Wholesaler C
Retailer D
Wholesaler D
Original Model
Retailer A
Wholesaler A
Retailer B
Wholesaler B
Retailer C
Wholesaler C
Retailer D
Wholesaler D
Value-Added Network (VAN) communications networks supplied and managed by thirdparty companies that facilitate electronic data interchange, Web services and transaction delivery by providing extra networking services
VAN Model
Retailer A
Wholesaler A
Wholesaler B
Wholesaler C
Retailer D
Wholesaler D
Web Services
Applications that use a universal language to send data and instructions to one another, with no translation required Uses the Internet, so most of the connection problems are eliminated
http://www.computerworld.com/softwaretopics/software/appdev/story/0,10801,64099,00.html
Options
EMAIL XML DIRECT ROUTING
Example of XML
<?xml version=1.0 standalone=yes?> <NewDataSet> <Order> <Customer><Name>Company Name</Name> <Address>Address, City, State, Zip</Address> <Customer Number>101</Customer Number></Customer> <Items> <Item><Product Number> 25</Product Number> <Qty>25</Qty></Item> <Item><Product Number> 30</Product Number> <Qty>15</Qty></Item> </Items> </Order> </NewDataSet>
http://aspalliance.com/487
Direct Routing
Retailer A
Wholesaler A
Retailer B
Wholesaler B
Retailer C
Wholesaler C
Retailer D
Wholesaler D
EDI Standards
http://www.x12.org
In 1986 X12F was added for the Financial Industry In 1989 X12M was added for the Warehousing sets In 1991 X12N was formed for the B2B Insurance and Healthcare needs.
http://www.x12.org
ASC X12
ASC X12 is looking to integrate with XML.
1999 the first summit was held to draft policies and procedures to create XML in ASC 2002 the second summit was held to further develop ASC/XML bonds.
Currently there are more than 300 X12 transaction sets in XML format for B2B transactions.
(www.disa.org)
They are used in the insurance, franchises, automotive, finance, communication, and merchandising industries.
http://cleo.com/university/tech-terms/EDI_X12.asp
http://www.uc-council.org/ean_ucc_system/stnds_and_tech/ucs.html
By late 1982, UCS standards released for general use by industry members
http://www.uc-council.org/ean_ucc_system/stnds_and_tech/ucs.html
http://www.uc-council.org/ean_ucc_system/stnds_and_tech/ucs.html
http://www.uc-council.org/ean_ucc_system/stnds_and_tech/ucs.html
Benefits
Increased accuracy Improved timeliness Reduced operating expenses
http://edi.kroger.com/edi/homepage_edi.htm
EDIFACT
Electronic Data Interchange for Administration, Commerce, and Transport is the international set of EDI standards Became a UN standard in 1987 Maintenance and further development is the responsibility of the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT)
http://www.x12.org/x12org/about/faqs.cfm#c8
EDIFACT
Includes syntax rules and implementation guidelines, message design guidelines, data elements, code sets, and other definitions Used for business-to-business (B2B) communication rather than business-toconsumer (B2C) Allows multi-country and multi-industry exchange Europe adopted EDIFACT early and has a large installed base indicating its continued use
Statistical Journal of the UN Economic Commission for Europe, 2002
Example of EDIFACT
UNB+IATB:1+1APPC+LHPPC+940101:0950+1 UNH+1+PAORES:93:1:IA MSG+1:45 IFT+3+?*XYZCOMPANY AVAILABILITY?* ERC+A7V:1:AMD IFT+3+NO MORE FLIGHTS ODI TVL+240493:1000::1220+FRA+JFK+DL+400+C PDI++C:3+Y::3+F::1 APD+74C:0:::6++++++1A TVL+240493:1740::2030+JFK+MIA+DL+081+C' PDI++C:4 APD+EM2:0:1630::6+++++++DA UNT+13+1 UNZ+1+1
http://en.wikipedia.org/wiki/UN/EDIFACT
Sources of Information
http://www.x12.org http://www.edi-guide.com http://www.gotedi.com/ http://www.phharval.com/edi/whatisedi/edibasics.html http://www.computerworld.com http://aspalliance.com/487 http://cleo.com/university/tech-terms/EDI_X12.asp http://www.uc-council.org/ean_ucc_system/ stnds_and_tech/ucs.html http://edi.kroger.com/edi/homepage_edi.htm