The concept of EDI can be a complicated topic for some people to wrap their heads around. Which is why in today’s blog post-we’ll be explaining the main concepts of EDI. Those being EDI networks, EDI standards and the benefits of EDI.

 

EDI Networks

Each EDI provider might use a different network to send and receive EDI documents. The most common EDI networks are VAN and AS2.

VAN networks are private EDI networks that will have a fee. You can only connect to people if you’ve been invited. There are two major VANs to connect to, the Trading Grid Messaging Service (TGMS) or Liason.
AS2 is a direct secure connection to your partner over the internet. AS2 requires special software to make connections and doesn’t cost any ongoing fees for sending and receiving EDIConnections are faster to set up and they give your provider a receipt for each sent an received EDI document.

EDI Formats

EDI standards are different languages EDI systems use to communicate with one another. Standards depend on the trading partner the business is connecting to. For example, the EDIFACT standard is mainly used within European companies. While X12 is predominantly used within North America.

Benefits of EDI

Another concept of EDI to consider is the benefits, EDI can not only save money but can improve business efficiency.
EDI has less chance of human error because it removes the traditional paper aspect. This improves business efficiency and workflow. Using EDI also gives customers the power to use ASNs. ASNs give suppliers detailed information on orders and give a heads up on deliveries.
Becoming a customer with XEDI removes the need to have an in-house EDI solution. XEDI offers proactive customer support thanks to DMT©. Document Message Tracking used to validate EDI files before they are transmitted over the EDI network to suppliers.

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