Introduction to EDI Basics

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This presentation provides a high level introduction to the area of EDI before then giving a brief introduction to each area of the site. The website provides a wealth of resources and downloads including message standards, industry specific EDI standards, communication protocols and the many different ways in which EDI services can be deployed across the extended enterprise. www.edibasics.co.uk – Updated April 2013

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Introduction to EDI Basics

  1. 1. © Copyright 2013, GXS Sponsored bySlide 1
  2. 2. © Copyright 2013, GXS Sponsored bySlide 2What Exactly is EDI?
  3. 3. © Copyright 2013, GXS Sponsored bySlide 3What is EDI?• Electronic Data Interchange (EDI), is the computer-to-computerexchange of standard business documents in electronic formatbetween two companies• EDI operates under two principles, firstly electronic documents replacepaper ones and secondly the exchange of documents takes place in astandardised format
  4. 4. © Copyright 2013, GXS Sponsored bySlide 4EDI Replaces Paper-BasedBusiness DocumentsPurchaseOrdersInvoicesASN/DeliveryNoticesCustomsDeclarationForms
  5. 5. © Copyright 2013, GXS Sponsored bySlide 5Why use EDI?
  6. 6. © Copyright 2013, GXS Sponsored bySlide 6The EDI Alternative• The buyer raises a Purchase Order (PO) with EDI software, which canbe automatically transmitted to the seller in near real-time• The seller’s order entry system receives the PO and anacknowledgement is transmitted to the buyer with delivery confirmation• What can take five days with paper takes minutes with EDI
  7. 7. © Copyright 2013, GXS Sponsored bySlide 7What Does an EDI MessageConsist of ?• Paper-based documents are posted in envelopes and it is possible tomail many documents in one envelope, EDI is just the same• A “message envelope” defines the start and end of a document• “Functional Group envelopes” contain all message envelopes of aspecific type, eg POs, invoices etc• “Interchange envelopes” enclose all functional group envelopes
  8. 8. © Copyright 2013, GXS Sponsored bySlide 8What are the Basic Steps for EDI?
  9. 9. © Copyright 2013, GXS Sponsored bySlide 9So How Much Does EDI Cost toImplement?• EDI can be provided viadifferent pricingmodels, namely:– priced by the number of kilo-characters (KC’s) contained within anEDI document– subscription models allow pay-as-you-go, monthly or annual contracts– EDI software can be purchased withongoing maintenance contracts
  10. 10. © Copyright 2013, GXS Sponsored bySlide 10What are the Benefits of Using EDI?
  11. 11. © Copyright 2013, GXS Sponsored bySlide 11Need for Speed• Sending an electronic messagelocally or globally takes seconds• Information sent by EDI is availableimmediately for use within internalapplications• Faster receipt of documents canprovide a competitive edge in anybusiness
  12. 12. © Copyright 2013, GXS Sponsored bySlide 12Need for Accuracy• Electronic transfer of businessdocuments– eliminates the need for copyingdata between paper-baseddocuments– eliminates errors caused bymanual updates or intervention– helps to reduce re-work
  13. 13. © Copyright 2013, GXS Sponsored bySlide 13Competitive Advantages of EDI• Reduces inventory costs through theshortening of order processing anddelivery cycles• Reduces overhead costs throughelimination of manual handling inareas such as mailroom, sorting andcirculation, clerical documentationand data entry
  14. 14. © Copyright 2013, GXS Sponsored bySlide 14What EDI Standards are in Use?
  15. 15. © Copyright 2013, GXS Sponsored bySlide 15EDI Standards• EDI standards help to ensure thatelectronic business documents canbe exchanged between companieswith ease• There are many different EDIstandards in use locally andaround the world
  16. 16. © Copyright 2013, GXS Sponsored bySlide 16EDI Industry Standards• Different industry sectors havetheir own set of standards forprocessing electronic documents• Industry groups such as EDIFICE(high-tech) and Odette(automotive) represent theirindustry groups but also worktogether to share standardsacross the automotive and high-tech sectors
  17. 17. © Copyright 2013, GXS Sponsored bySlide 17EDI Document Standards• Companies need to be able toexchange documents of any typewith customers and suppliers• Mapping is the process used toconvert business documents tothe required EDI format• Document mapping requiresskilled staff to generate the maps
  18. 18. © Copyright 2013, GXS Sponsored bySlide 18EDI Communication StandardsVAN / B2BServicesProviderCompanies can use a variety of communicationprotocols to connect with each other,OFTP2
  19. 19. © Copyright 2013, GXS Sponsored bySlide 19What is EDI Outsourcing?
  20. 20. © Copyright 2013, GXS Sponsored bySlide 20EDI Outsourcing• Many companies do not have theinternal skills necessary toimplement and manage EDI or B2Binfrastructures• Outsourcing can offer an easyroute for companies to implementEDI for the first time• Companies can streamline internaland external business processeswith EDI outsourcing
  21. 21. © Copyright 2013, GXS Sponsored bySlide 21EDI Outsourcing• EDI outsourcing helps companiesto manage their own internal EDIinfrastructure and also that of theirtrading partner community• Outsourcing can provide globalsupport capabilities• It enables companies to focus ontheir core competencies ratherthan on managing their EDIinfrastructure
  22. 22. © Copyright 2013, GXS Sponsored bySlide 22Let’s Take a Tour of theEDI Basics Website!
  23. 23. © Copyright 2013, GXS Sponsored bySlide 23What is EDI?• What is EDI section provides:– an introduction to EDI and whythere is a need for companiesto automate manual paperbased documents– an overview of how businessprocesses can be simplifiedthrough the introduction of EDI
  24. 24. © Copyright 2013, GXS Sponsored bySlide 24Benefits of EDI• Benefits of EDI sectiondiscusses:– cost savings that can berealised– benefits of increased speedand accuracy in sendingelectronic documents– improvement in businessefficiency– how EDI provides a strategiccompetitive advantage
  25. 25. © Copyright 2013, GXS Sponsored bySlide 25Costs of EDI• Costs of EDI sectiondiscusses the financialaspects of :– establishing an in house orbehind the firewall EDI basedsolution– using a third party EDIprovider and the various costmodels used to exchangebusiness documentselectronically
  26. 26. © Copyright 2013, GXS Sponsored bySlide 26Things to Consider• Things to Consider sectiondiscusses :– the considerations to be takenwhen implementing EDI– what type of transactionsneed to be automated?, howwill you connect to externaltrading partners? what type ofinternal resources will berequired to manage theimplementation?
  27. 27. © Copyright 2013, GXS Sponsored bySlide 27Types of EDI• Types of EDI sectiondiscusses:– the different ways in which EDIcan be enabled across atrading partner community– the differences between usingpoint to point versus internetbased EDI– whether to use a behind thefirewall software solution or anoutsourced EDI service
  28. 28. © Copyright 2013, GXS Sponsored bySlide 28Implementing EDI• Implementing EDI sectiondiscusses:– the best way to startimplementing an EDI platform– the ten key steps required toimplement an EDI platform.This area covers topics suchas undertaking a strategicreview, selecting the right EDInetwork provider and on-boarding trading partners
  29. 29. © Copyright 2013, GXS Sponsored bySlide 29EDI By Industry• EDI by Industry sectiondiscusses:– the many different ways inwhich EDI is implementedacross different industries– the different document orcommunications standards inuse today and the importanceof regional industry bodies tohelp drive a standardisedapproach to implementing EDI
  30. 30. © Copyright 2013, GXS Sponsored bySlide 30EDI Resources• EDI Resources sectionprovides:– a valuable source ofinformation relating to EDI andhow it can be deployed withina company– ability to download EDIwhitepapers, bestpractices, case studies andEDI standards relatedinformation
  31. 31. © Copyright 2013, GXS Sponsored bySlide 31EDI Resources• EDI Resources section alsoprovides:– more detailed overview of thevarious communication andmessaging standards that arein use today– useful multi-media archive ofvideos, webinars , audiorecordings and even an onlinequiz to test your knowledge ofEDI
  32. 32. © Copyright 2013, GXS Sponsored bySlide 32FAQs• FAQs section providesanswers on:– common EDI-related questionsthat a visitor to the websitemay have– how new users of EDI can getup-to-speed quickly with keyconcepts and terminology
  33. 33. © Copyright 2013, GXS Sponsored bySlide 33Glossary• Glossary section provides auseful list of the key wordsand acronyms used in the EDIindustry today
  34. 34. © Copyright 2013, GXS Sponsored bySlide 34Contact GXS• Contact GXS section allowsyou to contact GXS directly• This section also provides avery brief introduction to GXSand the industry sectors thatwe serve
  35. 35. © Copyright 2013, GXS Sponsored bySlide 35EDI Basics Mobile Site
  36. 36. © Copyright 2013, GXS Sponsored bySlide 36AS2 Basics• AS2 Basics link allows you tofind out more detailedinformation about the AS2communication protocol• AS2 is an internet basedcommunications protocolwhich is widely used acrossthe retail sector
  37. 37. © Copyright 2013, GXS Sponsored bySlide 37Thank You• UK English www.edibasics.co.uk• French www.edipourtous.fr• German www.edileitfaden.de• Hungarian www.edibasics.hu• Dutch www.edibasics.nl• Chinese www.edibasics.cn

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