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ELECTRONIC DATA INTERCHANGE (EDI) :

EDI is the electronic transfer from one computer to another computer process able data

using agreed standard to structure the data.

Example EDI transaction EDI handbook etc.

EDI is developed in 1960s means of accelerating the movements to shipments and

transportation.

It is aimed at forcing boundary less relationship that means it bringing down the

boundaries that restrict how they interact and do business each other.

Layered architecture of EDI is shown below:

EDI Semantic layer Application level services

EDI Standard layer EDIFACT business form standards

ANSI X12 business form standards

EDI transport layer Email and X.435 ,MIME

POINT TO POINT,

FTP ,TELNET,WWW,HTTP

Physical layer Dial up lines, internet ,I-way

1.EDI Document standard layer :

1.It specifies business form structure and to some extent influence content seen at the

application layer.

Example: purchase order name field x12 standard might be to hold 50 characters and 75

characters field produced name truncating during translation from application layer to

document standard layer.

2.EDI Transport layer :

It corresponds with non electronic activity of sending business from one company to

another company .It can send using postal service ,registered mail and certified mail

and email etc.

Generally EDI transport layer chooses email As the carrier services.

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3.EDI Physical layer : It describes the physical devices which involved in transaction.

They use various devices like dial up systems ,internet ,I-WAY,

EDI in Action :

Edi has been used in the procurement function to steam-line the interaction between the

Buyer and seller .the other uses for EDI are universities use EDI to exchange transcripts

quickly.

Automatically units uses EDI to transmit large complex engineering design created on

the specialized computers.

Large multinational companies use EDI to send online price catalogs to customers

Listed products , prices ,discounts and terms.

The EDI Transaction for a purchase ,shipment and payments are as follows :

These are the various steps as follows:

1.Buyers computer sends purchase order to sellers computer

2.Sellers computer sends purchase order confirmation to buyers computer

3.sellers computer sends booking request to transport companies computer.

4.Transport companies computer sends booking confirmation to sellers computer

5.sellers computer sends advance ship notice to buyers computer.

6.Trnasport company s computer sends status to sellers computer.

7.buyers computer sends receipt advice to sellers computer.

8.Sellers computer sends invoice to buyers computers.

9.Buyers computer sends payment to sellers computer