What is an EDI Standard?

An EDI standard is the series of uniform message formats used to create electronic--that is, computer-readable--versions of traditional paper documents. Many of the earliest standard message formats were first created and adopted by specific industries for the exchange of documents within that particular industry, or by specific companies for the exchange of documents with their many suppliers. As EDI has evolved, the use of industry-specific or company-specific standards (also known as proprietary standards) has lessened in favor of public standards. A few of the public standards you may be familiar with are EDIFACT, ANSI X12, UCS, TDCC, VICS, EDX, ODETTE, and TRADACOMS.

EDIFACT:-United Nations/Electronic Data Interchange For Administration, Commerce, and Transport.The main standard supported by the UN.

ANSI X12:-Common in USA, Canada and Australia

UCS:- The Uniform Communication Standard, is used by the grocery industry and other retail-oriented industry sectors. It is a subset of the ANSI ASC X12 national standard.

TDCC:-Transportation Data Coordinating Committee

VICS:-Voluntary Interindustry Commerce Standard.VICS EDI is being utilized by thousands of companies – department and specialty retail stores, mass merchandisers and their suppliers.

EDX:-Electronic Data Exchange

ODETTE:-Organization for Data Exchange by Tele Transmission in Europe - is working through four, cross-linked functional committees.Developed in the UK for the motor industry.

TRADACOMS:-The TRADACOMS EDI standard was originally developed by the ANA (Article Number Association), pre-cursor of the standards organisation, now known as e-centre. (www.ecentre.org.uk) TRADACOMS stands for the Trading Data Communications Standard.

What are the Benefits of EDI?

The most general benefits of EDI are improved speed, economy, and accuracy in handling business documents. More specifically, EDI offers:

• Convenient exchange of business documents during business or non-business hours
• Reduced business transaction costs
• Reduced information float
• Improved customer service
• Faster inventory replenishment and better overall inventory control
• Reduced inventory carrying costs
• Reduced safety stock
• Advanced notification of shortages, cuts and substitutions
• More reliable forecasting at both supplier and vendor ends
• Improved shipping, receiving, and cargo tracking
• Quick, accurate, and automatic reconciliation of documents
• Opportunity to negotiate better discounts and payment terms
• Improved cash flow management
• More efficient data flow at both intra- and inter-company levels
• More productive trading partner relationships
• Stronger bottom line

How does EDI work?

Your company's computer system may already serve as a repository for data related to business functions such as purchasing, marketing, inventory management, logistics, and accounting. EDI extends the value of the investment you've made in business application software. Creating, sending, receiving, and processing EDI business documents can be automated and integrated with your existing internal computer applications.

EDI extracts information from your applications and transmits paperless, computer-readable business documents via telephone lines and other telecommunications devices. At the receiving end, the data can be fed directly into the trading partner's computer system, where it can be automatically processed and interfaced with the receiver's internal applications. All of this is accomplished in minutes, without the rekeying and paper shuffling of manual document processing.

Why use EDI?

By using EDI, your company can send business documents directly from your internal computer applications to your trading partner's computer system - without human intervention. EDI can thus minimize staff involvement and reduce the delays and errors that accompany the manual processing of business documents. By simplifying and streamlining business procedures, EDI can help your organization control costs, increase efficiency, and improve customer service levels. At the same time, EDI may save your company money through decreased safety-stock inventory levels and diminished administrative requirements.

What is EDI ?

What is EDI?

EDI (electronic data interchange) is the direct, application-to-application transmission of business documents such as purchase orders, invoices, and remittance advice. By itself, EDI does not create any new processes or strategies, it simply speeds the existing ones. EDI compresses the timeline from initial order to shipment to final payment by sending actionable information without the need for rekeying at any step along the way.

If you're a retailer, EDI helps you respond to consumer demand faster. Reorders can be sent automatically in response to sales. If you're a manufacturer, EDI gets you the order faster and speeds the manufacturing process. At every stage of the supply chain, EDI is a tool that eliminates waste, delay and human error. It should be apparent why more and more business customers are favoring suppliers who can do business with them electronically.