EDI Standards

This blog covers the below mentioned options and it will help us to understand clearly about EDI.

What is EDI & Why does business use it?

• SAP XI/PI and EDI
• What are EDI Standards
• The Flow of Electronic Documents

EDI Definition:

Electronic Data Interchange (EDI) is the exchange of business data from the computer of one enterprise to the computer of another enterprise using a standard format like PO, Invoices e.t.c. I.e Intercompany Electronic Exchange of Business Documents in a Standard Format.

EDI is used with trading partners who are EDI capable and use EDI as a technology to improve the efficiency of their business.  Not all trading partners are EDI capable or choose EDI as their technology of choice.

Why does Business use it?

• Increased business opportunities
• Reduced inventory
• Lower data entry costs
• More accurate records
• Decreased mailing costs
• Reduction in order time
• Better cash management

     Examples:

             Paper Document – average cost is $50
             EDI Document – average cost is $4

What are EDI Standards:

Allows electronic interchange of data between many business partners without the re-development of new a proprietary interface with every partner
Provides a comprehensive, generic description of all possible components of a (paper) business document

ANSI X12 :

• American National Standards Institute (ANSI)
• Cross-industry general business standard
• Used throughout North America & Canada
• X12 Versions 003020 and 004010 is preferred when trading EDI with Suppliers
• Can accommodate any customer version

EDIFACT :

• EDI For Administration, Commerce, and Transportation (EDIFACT)
• Used throughout Europe and Asia, and by some international companies in North America
• EDIFACT version D97A is preferred when trading EDI with suppliers
• Can accommodate any customer version

TRADACOM :

• Trading Data Communications (TRADACOM)
• Tradacoms is an early standard for EDI primarily used in the UK retail sector and one of the precursors of EDIFACT
• Tradacoms versions are V8 and V9
• Can accommodate any customer version

SWIFT :

• The Society of Worldwide Interbank Financial Telecommunication (SWIFT)
• operates a worldwide financial messaging network which exchanges messages between banks and financial institutions
• SWIFT linked 8740 financial institutions across 209 countries
• A list of Document standards are
  • Customer Payments & Checks
  • Treasury Markets–Foreign Exchange, Money Markets & Derivatives
  • Documentary Credits & Guranatees
  • Cash Management & Customer Status

RosettaNet:

• RosettaNet is an organization set up by leading information technology companies to define and implement a common set of standards for e-business.
• A Partner Interface Process (PIP) is a message model that depicts the activities, decisions and partner Role Interactions that fulfill a business transaction between two partners in a given supply chain.
• RosettaNet consists of a consortium of major computer, consumer electronics, semi-conductor manufacturers, telecommunications and logistics companies.
• The RosettaNet document standard is based on XML and defines message guidelines, business processes interface and implementation frameworks for interactions between companies.

EIDX:

• The Electronincs Industry Data eXchange association
• Most major electronics companies in North America are members
• Education, Develop Business Models and Guidelines on how best to implement the ANSI X12 and EDIFACT standards and more recently XML within the RosettaNet standards

COMPTIA:

• Computing Technology Industry Association
• A global organization which represents 7,500 computer hardware and software manufacturers
• EIDX & COMPTIA now host joint meetings for mutual benefits

Counterparts to EIDX :

EDIFICE (European) – EDI  For Companies Interested in Computing and Electronics
EDIMAN (Singapore) – EDI for MANufacturing
EIAJ (Japan) – Electronics Industry Association Japan  standards and more recently XML within the RosettaNet standards

Reference Links:

http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/6dc02f5d-0601-0010-cd9d-f4ff9a7e8c33?QuickLink=index&overridelayout=true&5003637169484

http://wiki.sdn.sap.com/wiki/display/bpxproj/EDI+with+PI