Hello ..
EDI is the electronic exchange of business documents between the computer systems of business partners, using a standard format over a communication network.
EDI plays a major role in efforts to improve speed and efficiency when partners exchange business documents at
various times in the process of buying and selling goods.
Components in EDI Process
Trading Partners
Business documents
EDI Messages
Translators
Value Added Networks
Pre-Requisites For EDI
EDI-enabled applications
The IDoc interface
The EDI subsystem
EDI Interface
Although the use of EDI, or Electronic Data Interchange, is growing rapidly, it remains a mystery to many who are suddenly told that they need it.
EDI's goal for the following web pages is to give the prospective user of EDI greater insight into this technology. In this section, we have skipped most of the higher-level technical aspects, focusing more on the basics and process flow of EDI.
EDI is simply the sending and receiving of information using computer technology. Its efficiency has made it a condition of doing business in dozens of industries, including retail, grocery, warehousing, transportation (rail, ship, and trucking), health care, education, real estate, and government. Any standard business document that one company would exchange with another (such as a purchase order, invoice, shipping schedule, inventory inquiry, and claim submission) can be exchanged via EDI between two parties, or trading partners, as long as both have made the preparations.
EDI cannot be activated with a flip of the switch or in a moment's notice. Many procedures must be carried out in preparation for exchanging EDI data with a trading partner. This will be explained in a later section.
The use of EDI is not limited by differences in companies or communication methods. Instead, EDI bridges the information gap that exists between companies using different computer systems.
Can't I just use e-mail?
EDI is transmitted in a structured format, based on the use of message standards, which ensures that all participants use a common language. For instance, if you were to receive a PO via EDI, the EDI software would take the data and put it into a "readable format" then import it in your existing software. The result? No manual data entry! In addition, the process can be programmed to take place without human intervention.
What are the benefits of EDI?
Reduced postage costs
Reduced expenses
Speed. Because information is moved faster and with greater accuracy, time spent communicating with suppliers is decreased.
Elimination of paper documents.
Elimination of labor intensive tasks, such as data entry.
Greater accuracy of information.
Thanks,
Amit C kulkarni.
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