Frequently Asked Questions

Electronic Data Interchange (EDI) is the electronic interchange of business information in a standardized format across business partners and associates. In EDI the information is sent to business associates and partners electronically rather than paper. Business using EDI for electronic interchange of data are known to be as trading partners.

EDI has become important for various sectors as a lot of advantages are associated with this. EDI has eliminated the issue of traditional paper methods as it exchanges the info directly between the information systems. As we know, there are different types of structured messages but with the use of EDI technology, all types of transactions can be made with multiple partners. EDI is extremely beneficial for distributors, suppliers, customs, ports, etc.

Implementing EDI as the means of exchanging business data with your customers, vendors, suppliers, and partners will make the process more reliable, secure and faster compared to using manual devices and methods, like sending it through fax, mail or using paper documents. It reduces the overhead cost by automating B2B (business-to-business) processes, saving money by improving speed and accuracy and by minimizing resource and manpower usage.

Various sectors are currently using EDI for information exchange but the retail sector is widely using this technology, as ample number of commercial transactions between distributors and suppliers take place. Some other sectors are health, automotive, transport, tourism, etc.

EDI is a computer to computer exchange of standard business documents such as purchase orders, invoices, inventory levels, and invoices. The cost of setting up EDI mainly depends on the service provider. Below are some essential parts that are required to implement EDI effectively.

Standard Language: EDI requires a standardized language that is shared by the sender and receiver. The standards can be of different types such as EDIFACT, X12, XML
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EDI Software: Both the sender and receiver must have an EDI solution that is required for managing messages and facilitating the exchanges.
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Network Communication: EDI exchanges requires private communication networks that have a high level of security, therefore, they ensure the correct transmission and reception of a different type of messages. Security is mainly required in EDI transactions as there may exist chances of theft by intruders

EDI is predominantly founded on the trading of electronic messages which are shared by both the sender and collector. To guarantee legitimacy and adaptability, electronic messages are appended to the information structures which are kept up and created by powerful bodies. The best piece of the EDI framework is that they guarantee a smooth trade of any business papers with the particular accomplices.

If you are utilizing an answer that sends messages by manual information contributions through basic web frames then you need not make any change in the ERP. In the event that you are trading a main part of archives, at that point you need to coordinate EDI exchanges with the ERP. You may need to make certain changes in accordance with empower the extraction and mix of information.

Well, such things mainly depend on the volume of transactions and the partners who manage the EDI platform. It is very important to allocate a certain amount of resources for managing and maintaining EDI apps, especially for large projects. We provide you fabulous outsourcing services that will help you in maintaining the EDI platform.

There is no need to invest in new servers or databases to host the EDI system. Hardware, software, and databases which assume the installation, monitoring and management are accessible through web environments. All of them are completely transparent to the user so that he can keep an eye on everything.

EDI can be implemented very quickly, but it mainly depens upon the sort of EDI arrangement you have picked. In the event that it is an electronic arrangement facilitated by your client or customer, at that point you will should simply sign into their web-based interface and basically fill in the necessary online forms before sending the requisite reports. More complex systems will expect programming to be introduced on your organization’s system that will permit combination with your back-office frameworks. An EDI framework can be considered as an advancing solution. As your business develops and you start exchanging with more accomplices, the unpredictability of your EDI system will develop too.

EDI is a bi-directional technology hence you need a standard language to communicate between your business and trading partners. Secure communications networks are a must when enacting EDI communications. Security is key for peace of mind, not just for your business but for your trading partners, too.

The cost of implementing an EDI system depends upon the type of setup you will use. In general, outsourcing an EDI system is better, especially if there is a lack of knowledge and IT resources and infrastructure to implement it. However, you will discover that an EDI system pays for itself. For more information on the cost of implementing an EDI system, please feel free to contact our EDI experts who are always ready to assist you.