Introduction to Electronic Data Interchange (EDI)

By: Madhusudan Babar

Understanding Electronic Data Interchange

EDI replaces paper-based information exchange between businesses, significantly impacting supply chains and e-commerce by revolutionizing data sharing practices.

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Advantages of Electronic Data Interchange

EDI is fast, efficient and it can be automated. EDI streamlines business processes, reduces manual interventions and enhances the efficiency of data exchange between companies.

Comparing EDI to Traditional Approaches

Traditional methods are time-consuming and difficult to manage, it takes up to 3 to 5 days, whereas EDI is fast, secure and time-saving, normally occurs overnight and can take less than an hour.

Practical Applications of EDI

EDI is used in supply chain management, e-commerce systems. B2B has a great EDI exposure as the data needs to reflect both parties, EDI has less exposure to B2C business type.

EDI Standards

EDI standards define the structure and format of electronic documents exchanged between trading partners. ANSI-specified formats include:X12, EDIFACT and file formats such as Excel, CSV, JSON, IDOC and others.

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Secure Communication in EDI

To exchange EDI documents, various secure communication protocols can be used. this communication is achieved by the protocols like AS2, FTP, SFTP, HTTP, and HTTPS.

Exploring EDI Order Types

There are several Types of Orders in EDI, such as StandAlone orders, Bulk orders, Release orders and Drop-ship Order. These order types are utilized in effective B2B communication processes.

Tools and Systems in EDI

To simplify EDI operations, tools like Sterling Integrator, Seeburger and Web methods are utilized for communication purposes. ERP systems, such as SAP SD and SAP WMS are used for backend operations and order management.

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