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Introduction to EDI
What is EDI?
Electronic Data Interchange is the computer-to-computer exchange of business data and documents between companies using standard formats recognized both nationally and internationally. The information used in EDI is organized according to a specified format set by both companies participating in the data exchange.
http://www.x12.org/x12org/about/faqs.cfm#a1
History of EDI
The general idea behind EDI was originated by a group of railroad companies in the mid-1960s, in the United States. Much of the early work on EDI was driven by the industry sectors for:
transportation pharmaceuticals groceries automobiles banking
www.edi-guide.com/edi-history.htm
History of EDI
It was not until the 1970s, when work began for national EDI standards. Both client and vendors input their requirements to create a set of standard data formats that
were hardware independent; were unambiguous and could be used by all trading partners; reduced labor-intensive tasks such as dataentry; allowed the sender of data to control the exchange including receipt confirmation of by the other party
www.gotedi.com/term_history.htm
Advantages of EDI
Lower operating costs Saves time and money Less Errors = More Accuracy No data entry, so less human error Increased Productivity More efficient personnel and faster throughput Faster trading cycle Streamlined processes for improved trading relationships
http://www.edi-guide.com/edi-benefits.htm
Disadvantages
High Dependence on the participation of trading partners Costly for smaller companies Difficult to agree on standard to be used
http://www.edi-guide.com/risks-of-edi.htm
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Original Model
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Value-Added Network (VAN) communications networks supplied and managed by thirdparty companies that facilitate electronic data interchange, Web services and transaction delivery by providing extra networking services
VAN Model
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Web Services
Applications that use a universal language to send data and instructions to one another, with no translation required Uses the Internet, so most of the connection problems are eliminated
http://www.computerworld.com/softwaretopics/software/appdev/story/0,10801,64099,00.html
Options
EMAIL XML DIRECT ROUTING
Direct Routing
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EDI Standards
http://www.uc-council.org/ean_ucc_system/stnds_and_tech/ucs.html
EDIFACT
Electronic Data Interchange for Administration, Commerce, and Transport is the international set of EDI standards Became a UN standard in 1987 Maintenance and further development is the responsibility of the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT)
http://www.x12.org/x12org/about/faqs.cfm#c8
EDIFACT
Includes syntax rules and implementation guidelines, message design guidelines, data elements, code sets, and other definitions Used for business-to-business (B2B) communication rather than business-toconsumer (B2C) Allows multi-country and multi-industry exchange Europe adopted EDIFACT early and has a large installed base indicating its continued use
Statistical Journal of the UN Economic Commission for Europe, 2002