Implementing EDI, what is it and why do businesses need it. EDI or electronic data interchange is the transfer of electrical business documents, but why is implementing it so important and beneficial. Okay, enough rhetorical questions lets get with the program.
How would one go about implementing EDI within a business? The first step is finding a trading partner to trade with you and then choosing an EDI service like XEDI. It’s that simple.
Right, let’s get into the nitty-gritty. In the segment, we’ll cover the document standards and communication methods.
Every EDI company will use different document standard. for example, EDI based in the US will use whats called x12, that’s their EDI standard. However, there are lots different standards that other EDI providers will use. XEDI uses UN/EDIFACT, TRADACOMS and ANSI X12. When compliant the XEDI team will set you up to the correct document standard.
Methods of integration
There are many types of methods that EDI can be integrated and different providers will utilise more than one method at a time. Here are a few examples however for more information on the different systems and integrations -click here-.
WEB PORTAL – XEDI is often the best choice for small startup companies and medium-sized business, this system is often done over forms to transfer information between companies.
AS2 EDI – AS2 is a direct connection to an EDI, it provides safety and security by encrypting the transferred data.
VAN EDI – VANs (Value Added Networks) use private networks to transfer the EDI between businesses. This system utilised a “mailbox” system that lets business owners send and receive the EDI.
PTP EDI – PTP (point to point) EDI use a single connecting to send EDI between partners. They connect individually to each other and speak directly instead of relying on a relay to keep EDI flowing.