Management information system

ASSIGNMENT - 2
 Electronic Data Interchange (EDI) 
.
Topics that we are going to discus

01 History Of Electronic Data Interchange

02 What Comprises an EDI Document

03 How Does EDI Work?

04 , Standards.
Implementing, Benefits,need of EDI and EDI
 WHAT IS EDI?
Electronic Data Interchange (EDI) is the computer-to-computer
exchange of business documents in a standard electronic format
between business partners.
 Edward
Guilbert
Edward Guilbert, who is known
as the Father of EDI, was
directly involved with the
creation of translation rules
among four
existing sets of industry-specific
standards and the first standards
were subsequently published in
1975. Around that same time,
the first Value Added Network
(VAN), Telenet, came into
existence.
History Of Electronic Data Interchange

originated Published Adopted

when computer the File Transfer  AS/2 standard to
systems acquired Protocol (FTP)  communicate with
the ability to exchange suppliers
data with each other 1965 1975

1960s First attempt 1973 TDCC Release 2004

The first EDI First EDI
messages were standards
sent
EDI In Simple Way 

.
 What Comprises an EDI Document
?
An EDI document is comprised of data elements, segments
 and envelopes that are formatted according to the rules of a particular
EDI standard.

The graphic given below shows a sample purchase order in

printed form and how it would look once it’s translated into
the EDI formats.
.
 How Does EDI Work?
Step 1: Prepare the documents to be sent
The first step is to collect and organize the data.
-Human data entry via screens.

Step 2: Translate the documents into EDI format.

Step 3: Connect and Transmit your EDI documents to your

.
business partner.
 Implementing EDI
Step 1: Develop the Organizational Structure
Step 2: Undertake a Strategic Review
Step 3: Conduct In-depth Analysis
Step 4: Develop a Business-Focused EDI Solution
Step 5: Select the Correct EDI Network Provider (VAN)
Step 6: Integrate EDI with the Business
Step 7: Integrate Data across the Business
Step 8: Undertake Data Mapping
.
Step 9: Establish a Pilot Project
Step 10: Roll out EDI to Business Partners
 The Need for EDI
For supply chain businesses of any size, implementing EDI is
essential for sustained competitiveness and growth.
 EDI reduces costs and improves operational performance
across your business.
 EDI accelerates data flow, enhances accuracy and
.
streamlines administration
 EDI makes it easier to manage inventory and reduce
associated costs
 EDI Benefits
 Reduces or eliminates manual data entry errors
 Streamlines transaction processing
 Increases productivity without increasing staff
 Easier and more cost-effective to do business with your EDI
partners
.
 Other Benefits Include
EDI reduces associated expenses of storage,
Minimal paper printing, postage, mailing and recycling
usage
EDI  minimises data entry errors, improves
Enhanced quality of accounts payable/receivable times
data
business cycle is improved and stock levels are
 Improved turnaround kept constantly up to date and visible
times
eliminates times associated with manually
Improved timelines sending, receiving and entering orders

•Quick processing of accurate business

business efficiency  documents leads to less re-working of
orders,
fewer stock outs and fewer cancelled order
EDI STANDARDS

•EDI for Administration, Commerce, and

Transport (EDIFACT) - generic
international.
•American National Standards
Institute/Accredited Standards Committee
X12 (ANSI ASC X12)
THANK YOU