Electronic Data Interchange

What is EDI

EDI (Electronic Data Interchange) is a technology that has been applied since the 60s in the business sphere to exchange data between different IT systems.

EDI integrates communications technologies and specific software so that companies’ information systems can exchange critical business, logistical or tax data totally transparently. Thanks to this data interchange model, the in-house management systems of the different partners taking part in a business relation can link up, automating the recording and monitoring of key business transactions.

The standardized nature of the documents is what essentially differentiates EDI from other information interchange systems. Orders, delivery notes, invoices, inventories, price lists, etc., can be electronically interchanged between different trading partners thanks to the use of a common language which enables their integration into any computer system.

Nearly all transactions normally carried out by conventional means (fax, email, post…) can be managed via EDI.

What EDI is not

EDI HAS NO COPYRIGHT

AN EDI MESSAGE IS NOT AN E-MAIL

Ever since the creation of EDIFACT by UN/CEFACT, the basic aim of electronic data interchange has been to spread this technology to all industrial sectors, in any part of the world. Free from restrictions and without barriers hampering the uptake of EDI technology. The key lies in its open standards, available to any company.

This model allows companies to automate the exchange of information based on known and shared rules that are independent of the software used. Your customers or suppliers should be able to engage in EDI with you, even if they use proprietary solutions from providers other than your own.

Although this design may remind you some point of the typical e-mail clients, they do not use the same working system or the same communication protocols.

EDI messages are designed to be sent not by people, but by machines, so the way the message reaches its destination must be implicit in the data structure of the message per se. Forget your customer or supplier’s e-mail and start using terms such as GLN (Global Location Number).

What do we need for EDI?

	Standard Language: Interchanging electronic information requires a standardized language shared by sender and receiver to structure the messages. There are different standards, such as EDIFACT, X12, XML...
	EDI software: Sender and receiver must have an EDI solution to construct and manage the messages according to the standard in which the interchanges are to take place.
	Communications Network: EDI interchanges call for secure communications systems adapted to the peculiarities of this type of transactions. There are different options available, although the most widespread are VANs or Value Added Networks. These are private communications networks with high levels of security, control and monitoring to ensure the correct sending and reception of the different messages.

Key Benefits

No paper involved
Enhanced information processing
Cutting down processing and storage costs
Fewer errors
Automation of operations
Quicker response times
Integration of procedures between all trading partners

News

01/03/2019

EDICOM will participate at FORUM 2019 organized by GS1 Belgium & Luxembourg

This event, that will take place in Brussels on March 12, will focus on the challenges of standardization posed by electronic invoicing and data synchronization