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What Exactly is EDI?

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What is EDI?

• Electronic Data Interchange (EDI), is the computer-to-computer

exchange of standard business documents in electronic format
between two companies

• EDI operates under two principles, firstly electronic documents replace

paper ones and secondly the exchange of documents takes place in a
standardised format
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EDI Replaces Paper-Based
Business Documents

Customs
Purchase Declaration
Orders Forms

ASN/ Invoices
Delivery
Notices

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Why use EDI?

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The EDI Alternative

• The buyer raises a Purchase Order (PO) with EDI software, which can
be automatically transmitted to the seller in near real-time

• The seller’s order entry system receives the PO and an

acknowledgement is transmitted to the buyer with delivery confirmation

• What can take five days with paper takes minutes with EDI

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What Does an EDI Message
Consist of ?

• Paper-based documents are posted in envelopes and it is possible to

mail many documents in one envelope, EDI is just the same

• A “message envelope” defines the start and end of a document

• “Functional Group envelopes” contain all message envelopes of a

specific type, eg POs, invoices etc

• “Interchange envelopes” enclose all functional group envelopes

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What are the Basic Steps for EDI?

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So How Much Does EDI Cost to
Implement?

• EDI can be provided via

different pricing models,
namely:
– priced by the number of kilo-
characters (KC’s) contained within an
EDI document

– subscription models allow pay-as-you-

go, monthly or annual contracts

– EDI software can be purchased with

ongoing maintenance contracts

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What are the Benefits of Using EDI?

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Need for Speed

• Sending an electronic message

locally or globally takes seconds

• Information sent by EDI is available

immediately for use within internal
applications

• Faster receipt of documents can

provide a competitive edge in any
business

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Need for Accuracy

• Electronic transfer of business

documents

– eliminates the need for copying

data between paper-based
documents

– eliminates errors caused by

manual updates or intervention

– helps to reduce re-work

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Competitive Advantages of EDI

• Reduces inventory costs through the

shortening of order processing and
delivery cycles

• Reduces overhead costs through

elimination of manual handling in
areas such as mailroom, sorting and
circulation, clerical documentation
and data entry

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What EDI Standards are in Use?

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EDI Standards

• EDI standards help to ensure that

electronic business documents can
be exchanged between companies
with ease

• There are many different EDI

standards in use locally and
around the world

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EDI Industry Standards

• Different industry sectors have

their own set of standards for
processing electronic documents

• Industry groups such as EDIFICE

(high-tech) and Odette
(automotive) represent their
industry groups but also work
together to share standards
across the automotive and high-
tech sectors

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EDI Document Standards

• Companies need to be able to

exchange documents of any type
with customers and suppliers

• Mapping is the process used to

convert business documents to
the required EDI format

• Document mapping requires

skilled staff to generate the maps

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EDI Communication Standards

VAN / B2B
Services
Provider

,OFTP2

Companies can use a variety of communication

protocols to connect with each other
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What is EDI Outsourcing?

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EDI Outsourcing

• Many companies do not have the

internal skills necessary to
implement and manage EDI or B2B
infrastructures

• Outsourcing can offer an easy

route for companies to implement
EDI for the first time

• Companies can streamline internal

and external business processes
with EDI outsourcing

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EDI Outsourcing

• EDI outsourcing helps companies

to manage their own internal EDI
infrastructure and also that of their
trading partner community

• Outsourcing can provide global

support capabilities

• It enables companies to focus on

their core competencies rather
than on managing their EDI
infrastructure

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Let’s Take a Tour of the
EDI Basics Website!

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What is EDI?

• What is EDI section provides:

– an introduction to EDI and why
there is a need for companies
to automate manual paper
based documents

– an overview of how business

processes can be simplified
through the introduction of EDI

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Benefits of EDI

• Benefits of EDI section

discusses:
– cost savings that can be
realised

– benefits of increased speed

and accuracy in sending
electronic documents

– improvement in business
efficiency

– how EDI provides a strategic

competitive advantage

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Costs of EDI

• Costs of EDI section

discusses the financial
aspects of :
– establishing an in house or
behind the firewall EDI based
solution

– using a third party EDI

provider and the various cost
models used to exchange
business documents
electronically

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Things to Consider

• Things to Consider section

discusses :
– the considerations to be taken
when implementing EDI

– what type of transactions

need to be automated?, how
will you connect to external
trading partners? what type of
internal resources will be
required to manage the
implementation?

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Types of EDI

• Types of EDI section

discusses:
– the different ways in which EDI
can be enabled across a
trading partner community

– the differences between using

point to point versus internet
based EDI

– whether to use a behind the

firewall software solution or an
outsourced EDI service

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Implementing EDI

• Implementing EDI section

discusses:
– the best way to start
implementing an EDI platform

– the ten key steps required to

implement an EDI platform.
This area covers topics such
as undertaking a strategic
review, selecting the right EDI
network provider and on-
boarding trading partners

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EDI By Industry

• EDI by Industry section

discusses:
– the many different ways in
which EDI is implemented
across different industries

– the different document or

communications standards in
use today and the importance
of regional industry bodies to
help drive a standardised
approach to implementing EDI

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EDI Resources

• EDI Resources section

provides:
– a valuable source of
information relating to EDI and
how it can be deployed within
a company

– ability to download EDI

whitepapers, best practices,
case studies and EDI
standards related information

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EDI Resources

• EDI Resources section also

provides:
– more detailed overview of the
various communication and
messaging standards that are
in use today

– useful multi-media archive of

videos, webinars , audio
recordings and even an online
quiz to test your knowledge of
EDI

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FAQs

• FAQs section provides

answers on:
– common EDI-related questions
that a visitor to the website
may have

– how new users of EDI can get

up-to-speed quickly with key
concepts and terminology

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Glossary

• Glossary section provides a

useful list of the key words
and acronyms used in the EDI
industry today

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Contact GXS

• Contact GXS section allows

you to contact GXS directly

• This section also provides a

very brief introduction to GXS
and the industry sectors that
we serve

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EDI Basics Mobile Site

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AS2 Basics

• AS2 Basics link allows you to

find out more detailed
information about the AS2
communication protocol

• AS2 is an internet based

communications protocol
which is widely used across
the retail sector

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Thank You

• UK English

 www.edibasics.co.uk

• French

 www.edipourtous.fr

• German

 www.edileitfaden.de

• Hungarian

 www.edibasics.hu

• Dutch

 www.edibasics.nl

• Chinese

 www.edibasics.cn

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