EDI NOTES
What Is Electronic Data Interchange?
Electronic Data Interchange (EDI) is a technology that
allows the computer-to-computer exchange of business documents in a
standardized electronic format between organizations. EDI replaces traditional
paper-based documents like purchase orders, invoices, and shipping notices with
electronic versions.
7 Different Types of Electronic Data Interchange (EDI)
- Direct
EDI (Point-to-Point)
- Description:
A direct, dedicated connection between two business partners to exchange
EDI documents.
- Example:
A large retailer directly exchanges purchase orders and invoices with
suppliers.
- Value-Added
Network (VAN)
- Description:
Utilizes a third-party network provider to facilitate the exchange of EDI
documents between trading partners.
- Example:
Companies using a VAN to handle communications, data translation, and
security.
- Web
EDI
- Description:
Uses web-based applications to allow businesses to exchange EDI documents
via the internet.
- Example:
Small businesses accessing an online portal to send and receive EDI
documents.
- Mobile
EDI
- Description:
Enables EDI transactions to be conducted via mobile devices, providing
flexibility and real-time processing.
- Example:
Sales representatives using smartphones to submit orders and check
inventory status.
- EDI
via AS2
- Description:
Transmits EDI documents over the Internet using the AS2 (Applicability
Statement 2) protocol, ensuring secure and reliable communication.
- Example:
Retailers and suppliers exchanging data securely over the Internet using
AS2.
- Cloud-Based
EDI
- Description:
Provides EDI services through cloud platforms, offering scalability,
reduced costs, and ease of integration.
- Example:
Businesses leveraging cloud EDI solutions to manage transactions without
maintaining on-premise infrastructure.
- EDI
Outsourcing
- Description:
Involves hiring third-party providers to manage EDI processes and
infrastructure, allowing businesses to focus on core activities.
- Example:
Companies outsourcing their EDI operations to specialized providers for
enhanced efficiency and cost savings.
