Download - Introduction to EDI Basics
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Introduction toEDI Basics
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What Exactly is EDI?
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What is EDI?
• Electronic Data Interchange (EDI), is the computer-to-computer
exchange of standard business documents in electronic format
between two companies
• EDI operates under two principles, firstly electronic documents replace
paper ones and secondly the exchange of documents takes place in a
standardised format
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EDI Replaces Paper-Based Business Documents
PurchaseOrders
InvoicesASN/ DeliveryNotices
Customs Declaration
Forms
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Why use EDI?
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The EDI Alternative
• The buyer raises a Purchase Order (PO) with EDI software, which can
be automatically transmitted to the seller in near real-time
• The seller’s order entry system receives the PO and an
acknowledgement is transmitted to the buyer with delivery confirmation
• What can take five days with paper takes minutes with EDI
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What Does an EDI Message Consist of ?
• Paper-based documents are posted in envelopes and it is possible to
mail many documents in one envelope, EDI is just the same
• A “message envelope” defines the start and end of a document
• “Functional Group envelopes” contain all message envelopes of a
specific type, eg POs, invoices etc
• “Interchange envelopes” enclose all functional group envelopes
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What are the Basic Steps for EDI?
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So How Much Does EDI Cost to Implement?
• EDI can be provided via
different pricing models,
namely:
– priced by the number of kilo-
characters (KC’s) contained within an
EDI document
– subscription models allow pay-as-you-
go, monthly or annual contracts
– EDI software can be purchased with
ongoing maintenance contracts
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What are the Benefits of Using EDI?
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Need for Speed
• Sending an electronic message
locally or globally takes seconds
• Information sent by EDI is available
immediately for use within internal
applications
• Faster receipt of documents can
provide a competitive edge in any
business
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Need for Accuracy
• Electronic transfer of business
documents
– eliminates the need for copying
data between paper-based
documents
– eliminates errors caused by
manual updates or intervention
– helps to reduce re-work
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Competitive Advantages of EDI
• Reduces inventory costs through the
shortening of order processing and
delivery cycles
• Reduces overhead costs through
elimination of manual handling in
areas such as mailroom, sorting and
circulation, clerical documentation
and data entry
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What EDI Standards are in Use?
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EDI Standards
• EDI standards help to ensure that
electronic business documents can
be exchanged between companies
with ease
• There are many different EDI
standards in use locally and
around the world
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EDI Industry Standards
• Different industry sectors have
their own set of standards for
processing electronic documents
• Industry groups such as EDIFICE
(high-tech) and Odette
(automotive) represent their
industry groups but also work
together to share standards
across the automotive and high-
tech sectors
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EDI Document Standards
• Companies need to be able to
exchange documents of any type
with customers and suppliers
• Mapping is the process used to
convert business documents to
the required EDI format
• Document mapping requires
skilled staff to generate the maps
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EDI Communication Standards
VAN / B2BServices Provider
Companies can use a variety of communication protocols to connect with each other
,OFTP2
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What is EDI Outsourcing?
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EDI Outsourcing
• Many companies do not have the
internal skills necessary to
implement and manage EDI or B2B
infrastructures
• Outsourcing can offer an easy
route for companies to implement
EDI for the first time
• Companies can streamline internal
and external business processes
with EDI outsourcing
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EDI Outsourcing
• EDI outsourcing helps companies
to manage their own internal EDI
infrastructure and also that of their
trading partner community
• Outsourcing can provide global
support capabilities
• It enables companies to focus on
their core competencies rather
than on managing their EDI
infrastructure
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Let’s Take a Tour of the EDI Basics Website!
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What is EDI?
• What is EDI section provides:
– an introduction to EDI and why
there is a need for companies
to automate manual paper
based documents
– an overview of how business
processes can be simplified
through the introduction of
EDI
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Benefits of EDI
• Benefits of EDI section
discusses:
– cost savings that can be
realised
– benefits of increased speed
and accuracy in sending
electronic documents
– improvement in business
efficiency
– how EDI provides a strategic
competitive advantage
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Costs of EDI
• Costs of EDI section
discusses the financial
aspects of :
– establishing an in house or
behind the firewall EDI based
solution
– using a third party EDI
provider and the various cost
models used to exchange
business documents
electronically
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Things to Consider
• Things to Consider section
discusses :
– the considerations to be taken
when implementing EDI
– what type of transactions
need to be automated?, how
will you connect to external
trading partners? what type of
internal resources will be
required to manage the
implementation?
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Types of EDI
• Types of EDI section
discusses:
– the different ways in which EDI
can be enabled across a
trading partner community
– the differences between using
point to point versus internet
based EDI
– whether to use a behind the
firewall software solution or an
outsourced EDI service
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Implementing EDI
• Implementing EDI section
discusses:
– the best way to start
implementing an EDI platform
– the ten key steps required to
implement an EDI platform.
This area covers topics such
as undertaking a strategic
review, selecting the right EDI
network provider and on-
boarding trading partners
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EDI By Industry
• EDI by Industry section
discusses:
– the many different ways in
which EDI is implemented
across different industries
– the different document or
communications standards in
use today and the importance
of regional industry bodies to
help drive a standardised
approach to implementing EDI
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EDI Resources
• EDI Resources section
provides:
– a valuable source of
information relating to EDI and
how it can be deployed within
a company
– ability to download EDI
whitepapers, best practices,
case studies and EDI
standards related information
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EDI Resources
• EDI Resources section also
provides:
– more detailed overview of the
various communication and
messaging standards that are
in use today
– useful multi-media archive of
videos, webinars , audio
recordings and even an online
quiz to test your knowledge of
EDI
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FAQs
• FAQs section provides
answers on:
– common EDI-related questions
that a visitor to the website
may have
– how new users of EDI can get
up-to-speed quickly with key
concepts and terminology
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Glossary
• Glossary section provides a
useful list of the key words
and acronyms used in the EDI
industry today
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Contact GXS
• Contact GXS section allows
you to contact GXS directly
• This section also provides a
very brief introduction to GXS
and the industry sectors that
we serve
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EDI Basics Mobile Site
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AS2 Basics
• AS2 Basics link allows you to
find out more detailed
information about the AS2
communication protocol
• AS2 is an internet based
communications protocol
which is widely used across
the retail sector
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Thank You
• UK English
www.edibasics.co.uk
• French
www.edipourtous.fr
• German
www.edileitfaden.de
• Hungarian
www.edibasics.hu
• Dutch
www.edibasics.nl
• Chinese
www.edibasics.cn