E-Commerce Application Development

Notes 

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)

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.

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