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We speak EDI, now you can too!

EDI, or electronic data interchange is the structured transmission of data between organizations via electronic means.

Eliminate manual data entry- Reduce costly shipping & billing errors

Scale your business without increasing headcount

Send order documents (POs, invoices, catalog price files, etc.) in real-time

Fully-integrate your eCommerce ecosystem

Eliminate paper documents & go green- Lower transaction costs by at least 35%

Using a third-party provider can be 30% less of a cost than using in-house EDI

Process more orders in less time- Speed up business cycle by 61%

WHAT IS EDI?

HISTORY

EDI Replaces:

POSTAL MAIL FAXES EMAIL PHONE ORDERS

Ed Guilbert, the father of EDI, expanded upon standardized shipping manifests he developed during the 1948 Berlin Airlift

First EDI messages sent – Holland-American steamship line sent trans-Atlantic shipping manifests using telex messages (which could send a full page of information in roughly 2 minutes)

These messages were then converted into tape that could be loaded onto computers

The File Transfer Protocol (FTP) was published and enabled file transfer between internet sites

The TDCC releases the first EDI standards, of which Guilbert was a major contributor.

The first Value Added Network (VAN), Telenet, was established

Companies in the automotive industry, such as Ford and General Motors and large retailers, including Sears and Kmart, begin to mandate EDI for their suppliers

Wal-Mart adopted the AS/2 standard to communicate with suppliers. While other major retailers follow, many retailers continued to use VAN communication

Over 100,000 companies in the United States use EDI to communicate with business partnersThe AS/2 has risen in popularity, as it is less expensive than VAN and eliminates the need to go through a ‘middle man’. Companies such as Target and Lowe’s utilize AS/2, and require all of their suppliers to use it tooOver 90% of Fortune 500 companies are EDI capable, but many small businesses are adopting EDI as well.

1948

1965

1973

1975

1982

2004

TODAY

EDI 855

PO ACK.

EDI 856

ADVANCEDSHIPMENT

NOTICEEDI 810

INVOICE

EDI 846

INVENTORYUPDATEORDER IS

PLACED

ORDER ISFULFILLED

INVENTORYUPDATE

ADVANCEDSHIPMENTNOTICE

EDI 850

PURCHASEORDER

PURCHASE ORDER

PURCHASEORDERACKNOWLEDGEMENT INVOICE

EDI GLOSSARY:AS2: (Applicability Statement 2) is a specification about how to reliably and securely transfer data over the internet. Security is achieved by using digital certificates and encryption.

FTP: (File Transfer Protocol) is a standard network protocol used to transfer files from one host to another host over the internet.

GS1-128/UCC-128: is an application standard of the GS! Implementation using the code 128 barcode specification. The former correct name was UCC/EAN-128. The GS1-128 uses a series of Application Identifies to include additional data such as best before dates, batch numbers, quantities, weights and many other attributes needed by the user.

VAN: (value added network) is a hosted service offering that acts as an intermediary between business partners sharing standards based on proprietary data via shared business processes.

Web service: a method of communication between two electronic devices over the World Wide Web. It is a software function provided at a network address over the web with the service always on.

XML: is a markup language that defines a set of rules for encoding documents in a format that is both human-readable and machinereadable. It is defined in the XML 1.0 Specification produced by the W3C, and several other related specifications, all free open standards.

810 Invoice sent from the vendor to the merchant

820 ACH Payment (Automated Clearing House Payment)

832 Product Catalog Price File

846 Product Inventory

850 Purchase Order. Ship to address, items to ship

855 Purchase Order Acknowledgement. Got your PO (850), can ship all items, some items or no items.

856 Advance Shipment Notice. Tracking information for the items shipped on the PO (850)

940 Warehouse Order - similar to 850 except goes to 3PL WH

945 Warehouse Shipping

997 Functional Acknowledgement (FuncAck)

Common EDI Documents

Sending an EDI document (i.e. an invoice or purchase order) is composed of three easy steps:

HOW IT WORKS

Preparing the document to be sent

Translating the document into EDI format

Connecting and transmitting the document to the business partner.

1

2

3

BENEFITS

EDI INFOGRAPHIC

Due to the fact that EDI documents are processed through computers, a standard format is necessary so that the

computer is able to read and understand the documents. There are multiple EDI

standards in use, including ANSI, EDIFACT, TRADACOMS, and XML. Each standard

also has multiple versions, so when businesses decide to exchange EDI documents with one another, they

must agree on a specific EDI standard and version.