3. Introduction of EDI
• Electronic Data Interchange (EDI) is a set
of standards for structuring information that is
to be electronically exchanged between &
within businesses, organizations, government
entities & other groups, without human
involvement.
• A way to exchange transcripts (and other
important data) without paper.
4. • The National Institute of Standards and
Technology in a 1996 publication defines
Electronic Data Interchange as "the computer-
to-computer interchange of strictly formatted
messages that represent documents other than
monetary instruments.
• EDI can be transmitted using any methodology
agreed to by the sender and recipient. This
includes a variety of technologies, including
modem (asynchronous, and bisynchronous),
FTP, Email, HTTP, AS1, AS2, etc
5. Features of EDI
• Exchange of structured business information in
standard formats between computers.
• It has reduced data entry link, eliminates the
need for a paper bases system and improved
business cycle.
• EDI transfer structured business documents
internally among groups of departments or
externally with its suppliers, customers and
subsidiaries.
6. • In EDI, information transferred over a network
will not have to read, retyped or printed but
must have predefine structure agreed between
the two company's which send and receive
data.
• The two companies or groups which
exchanged information through EDI are called
the Trading Partners.
7.
8. Working of EDI
1. Exchange of data with several trading partners
directly in a standard format.
2. EDI just seeks to take a form from a business
application, translates that data into a
standard electronic format & transmit it.
3. At the receiving end, the standard format is
untranslated into a format that can be read by
the recipient’s application.
9. Working of EDI cont…
Manufacture
Manufacture
Manufacture
Manufacture
Supplier
Supplier
Supplier
Supplier
Supplier
Supplier
Third
Party
Vendor
One to Many
One to Many
10. Benefits of EDI
• Speed:- data can move directly form one
computer to another with little to no delay.
• Accuracy:- errors are reduced because data is
not being re-keyed
• Simplicity:- EDI standard specify how data will
be formatted & where it can found.
• Security:- EDI can be accessed only by
authorized users & is accompanied by audit
trails & archiving of data.
11. • Faster buy-sell cycle time
• Reduced order lead time & inventories
• Ability to conduct just in time manufacturing
• Improved trading partner relationship
• Reduced labour costs
• Faster document processing
• Reduced paper based system.
12. Components of EDI
There are 3 types of component:-
1. Application service
2. Translation service
3. Communication service
13. Components of EDI cont…
Business
Application
Trading
Partner
Application
Service
Transmission
Service
Communicatio
n Service
14. EDI services
1. Application Services :-
It provides the link between
application and EDI. It allows you to send
documents from an EDI system. The set of
callable routine is used to transfer document
from the business application into EDI
document destination can be either intra-
company or to the external companies .
15. EDI services
2. Translation service:-
Converts the out going
documents from an internal format file to an
agreed external format.
Translates internal document from external
format to EDI internal format file.
16. EDI Services cont…
3. Communication service:-
The communication
service sends and receives transmission files
to and from the trading partners either directly
or by using party service called a valued
added network(VAN).
