introduction to edi basics

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Introduction toEDI Basics


What Exactly is EDI?


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


EDI Replaces Paper-Based Business Documents

PurchaseOrders

InvoicesASN/ DeliveryNotices

Customs Declaration

Forms


Why use EDI?


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


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


What are the Basic Steps for EDI?


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


What are the Benefits of Using EDI?


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


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


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


What EDI Standards are in Use?


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


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


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


EDI Communication Standards

VAN / B2BServices Provider

Companies can use a variety of communication protocols to connect with each other

,OFTP2


What is EDI Outsourcing?


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


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


Let’s Take a Tour of the EDI Basics Website!


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


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


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


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?


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


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


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


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


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


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


Glossary

• Glossary section provides a

useful list of the key words

and acronyms used in the EDI

industry today


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


EDI Basics Mobile Site


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


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

http://www.edibasics.co.uk/

http://www.edibase.fr/

http://www.edileitfaden.de/

http://www.edibasics.hu/

http://www.edibasics.nl/

http://www.edibasics.cn/

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