EDI … the acronym for Electronic Data Interchange

EDI is the computer-to-computer exchange of business data in standard formats.  Information is organized according to a specified format set by both parties, allowing an automated computer transaction that requires no human intervention or rekeying on either end.

EDI standards in the US are set and published by the ASC X12 committee of ANSI. The standard is also called ANISX12.  International EDI standards are known as EDIFACT standards.

The messages exchanged are typically Orders and Invoices, although there are hundreds of available messages.

EDI use is varies according to the activity performed by each organization within a supply chain process. Among suppliers that perceive EDI as having more of a strategical advantage and less cost and organizational challenges the use of EDI is greater and more appreciated.  

Many non-adaptors of EDI are more and more forced into doing EDI by their customers. For a small company the cost of implementing a full fledged EDI solution can be cost prohibitive. For these vendors most of the major EDI Solutions providers offer an off-the-shelf solution that allows any organization to be up and running on EDI in a matter of days. Transactions will be exchanged through some sort of on-line EDI Exchange portal, through which transactions like PO’s (850) can be received and outbound transactions like invoices (810) or Advanced Ship Notifications, so called ASN (856) can be reentered and submitted to the respective trading partner.

For the Consumer Goods market, the right EDI solution offers you the ability to exchange messages with your customers, logistics partners and suppliers, no matter what standards they choose to use. 

If your organization needs help in selecting and implementing the right EDI solution within your organization, before losing a customer, I will be able to help you with this undertaking, and without you having to invest large amounts of time and money adapting your systems to meet their various requirements. I have implemented fully back-end integrated EDI solutions as well as standalone EDI Solutions through Web Portals or direct VAN connectivity.

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