EDI (Electronic Data Interchange)

Frequently Asked Questions about EDI Software

• What is the Electronic Data Interchange (EDI)?

  EDI is the digital exchange of business documents (e.g., orders, invoices) between partners. It automates supply chain and financial operations, integrating with ERP, CMS, WMS, e-commerce, and financial systems to enhance efficiency and accuracy.

• What are common EDI formats?

  There are many different EDI formats. Here are some of the most common ones:

  1. ANSI X12: Used in North America for retail, finance, healthcare, etc.
  2. EDIFACT: Common in Europe for logistics, trade, and healthcare
  3. TRADACOMS: Used in UK retail
  4. VDA: German automotive industry
  5. XML: Versatile format for different systems

• What types of electronic documents can be exchanged via EDI?

  Regardless of the standard (EDIFACT, ANSI X12, etc.), the most common messages are presented in the list  below.

  • EDIFACT: Order (ORDER), Invoice (INVOICE), Despatch advice (DESADV)
  • ANSI X12: Order 850, Invoice 810, Advance Shipping Notice 856

• How does the EDI process look?

  1. Data creation: Generate data in a company’s system.
  2. Data mapping: Convert data into an EDI format.
  3. Communication: Transmit EDI messages via a network.
  4. Translation: Convert EDI messages into the receiver’s format.
  5. Validation: Ensure messages meet standards.
  6. Processing: Update receiver’s system with the data.
  7. Acknowledgment: Confirm receipt and processing.

  These steps can be repeated in a continuous cycle, enabling efficient, accurate, and timely transfer of information between organizations.

• What is EDI compliance?

  EDI compliance ensures the accurate exchange of electronic business documents according to industry standards for integrity, security, and formatting. Non-compliance can result in errors, delays, and penalties.

• How can I improve EDI processes in a company?

  1. Assess current processes: Identify strengths and weaknesses.
  2. Set goals: Align with company mission.
  3. Choose the right EDI system: Fit for your needs and transaction volume.
  4. Partner with an experienced provider: Industry expertise matters.
  5. Standardize and automate processes: Ensure consistent, error-free data and transactions.
  6. Train employees: Ensure they understand and can handle EDI.
  7. Monitor and evaluate: Continuously improve performance.

• What makes a good EDI strategy?

  A good EDI strategy should include the following elements: 

  1. Clear goals: Specific, measurable, achievable, relevant, time-bound (SMART).
  2. Scalability and flexibility: Adapt to future growth and changes.
  3. Integration: Seamlessly integrate with existing systems.
  4. Security: Protect sensitive data.
  5. Expert team: Experienced in EDI implementation and maintenance.
  6. Compliance: Adhere to industry standards (e.g., HIPAA, GDPR).
  7. Continuous improvement: Regularly monitor and enhance EDI operations.

  Overall, a good EDI strategy should be scalable, secure, compliant with industry standards, supported by a team of experts, and aligned with your business goals. This way, it will provide ongoing monitoring and improvement of your EDI operations. 

• What are common EDI challenges?

  1. Merging with existing systems.
  2. Varying data format requirements.
  3. Protecting sensitive information.
  4. Understanding data and implementation protocols.
  5. The need for ongoing support.
  6. Training and new workflows.
  7. Initial investment and resources.
  8. Issues during system outages.

• Can I launch an EDI project if my trading partner doesn't use EDI or an ERP system?

  Yes, using solutions like Comarch EDI, which offers a web application for document exchange, accessible in multiple languages.

• Is it possible to outsource EDI?

  Yes, EDI can be outsourced to providers like Comarch, offering support for data storage, transfer, and validation according to client specifications and legal requirements. Contact us for more information.