What is EDI?
Electronic Data Interchange (EDI) refers to the structured transmission of data between organizations electronically. It is used to transfer electronic documents from one computer system to another, i.e. from one trading partner to another trading partner. Benefits should be seen in many areas, including reduced time delays, reduced labor costs, improved data accuracy and increased information accessibility.
North American standards are currently developed and maintained by a private not-for-prfit organization called ANSI (American National Standards Institute). In the late 1990s, international format standards were established and introduced to facilitate international business activity.
"EDI saves money and time because transactions can be transmitted from one information system to another through a telecommunications network, eliminating the printing and handling of paper at one end and the inputting of data at the other," Kenneth C. Laudon and Jane Price Laudon wrote in their book Management Information Systems: A Contemporary Perspective.
Typical Retail Process
- Trading Partner transmits PO (850)
- Pick Tickets and Labels (UCC-128)
- Wholesaler transmits Advance Ship Notice ASN (856)
- Wholesaler transmits Invoice (810)
- UCC Block ID is typically required
- Product Catalogue up load (832)
- Hang Tags / Stickers (VICS)
- EDI testing
- Label Validation
- Avoid Chargebacks!