Summary: EDI is the act of exchanging documents and communicating electronically with trading partners. Implementation is not difficult, and most organizations should start with the web-based EDI approach before moving on to EDI software.
EDI, also known as Electronic Data Interchange is the process of exchanging communications between two trading partners. Here are some common questions from people who are new to EDI:
Who uses EDI?
Nearly all major industries use EDI, such as retail, finance, automotive, and industrial. Any industry that places or fulfills orders with trading partners will benefit from EDI.
What is a trading partner?
In EDI parlance, a trading partner is any organization that you either sell to or buy from which requires the exchange of documents. EDI is an electronic exchange of documents from one company to another.
What are the types of EDI solutions?
There are three EDI solutions available: EDI software, web based EDI and EDI service bureau. EDI software is the method with the most integration with your back office systems. Web-based EDI is a browser based system that involves data entry and does not provide much integration with existing systems. A service bureau conducts most of the EDI operations on your behalf.
Is it difficult to implement EDI?
Implementing EDI does not have to be difficult. You can treat the implementation as an evolving process and start with a web-based EDI approach and then move on to software that integrates with your in-house systems. The system can grow in complexity as your business and trading partners grow.
Written by Act Data Services, Inc. 1-800-ACT-DATA. They are an electronic data interchange (EDI) provider for retail and supplier environments and will handle all aspects of the implementation including vendor compliance.