Electronic Data Interchange
Electronic Data Interchange (EDI) is the electronic interchange of business information using a standardized format; a process which allows one company to send information to another company electronically rather than with paper. Business entities conducting business electronically are called trading partners.
Common examples include purchase orders (EDI 850), shipping statuses (EDI 214), invoices customs information, payment confirmations (EDI 820), and inventory documents. The standard EDI format allows computers to process EDI documents.
EDI = Electronic Data Interchange. Definition: Computer to computer exchange of standard business documents such as purchase orders, invoices, inventory levels and shipping notices. EDI software solutions facilitate the exchange of business documents and data across a variety of platforms and programs.
Types of EDI
Electronic Data Interchange (EDI) software creates a data exchange between two or more computers. This software is typically used for the fast transfer of business documents within companies and between business partners, such as suppliers or customers.
There are 3 steps to sending EDI documents – Prepare the documents, Translate the documents into EDI format, Transmit the EDI documents to your partner.
A Structured 10-Step Process for Successful EDI Implementation
So What Do You Need in an EDI System?
Sep 30, 2009
An EDI requirements document clarifies those preferences at the beginning of the relationship so you and your trading partner(s) can get things in order.
Benefits of EDI
Jan 26, 2017
EDI Software is quite expensive. For my first EDI outsourcing company I paid over $30,000 for EDI software. That was a special deal and I would consider it very cheap compared to prices for the leading brands today. They also usually include yearly maintenance fees that most small companies couldn't afford.
If there's anything certain about the future of EDI software, it's that its future isn't certain at all. Electronic data interchange technology has been around for decades, and in that time, numerous authorities have declared it's imminent end.
One time setup fee – no cost, flat rate or up to $750 per trading partner. Subscription fee – from $25 to several hundred dollars per month depending upon transaction volume. No subscription fee for vendors who offer blocks of transactions. Seasonal users may not be required to pay the fee during their off-season.
four to six weeks
On average, EDI implementation takes four to six weeks. The biggest factor in the process is the responsiveness of your trading partner(s). If a partner is particularly responsive, you can be up and running in less than 4 weeks. On the other hand, unresponsive partners will drag out the process.
EDI compliance refers to a business's capacity to accurately send and receive EDI transactions according to the order data requirements of its EDI trading partners. Many companies insist that their trading partners communicate using EDI software, including retail giants like Walmart, Target, Costco, and Amazon.
An EDI provider is a business that sells EDI software, EDI managed services or other EDI-related programs to other companies. EDI providers enable enterprises to transfer standardized data to and from the members of their business ecosystems.
Electronic Data Interchange (EDI) is a data exchange protocol that eliminates humans from the process. Pre-EDI, information was commonly retrieved from one system, manually recorded on a spreadsheet or paper, sent to the necessary receiver of this information, and then manually entered into the receiver system.
The EDI VAN is simply a secure network where EDI documents can be exchanged between a network of business partners. An organization will be provided with a mailbox by the EDI VAN provider. Documents are sent and received from there and the organization checks the mailbox periodically to retrieve its documents.