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This project is related to EDI (Electronic Data Interchange) given all the information related to EDI like their meaning, features, Benefits, Types, Working of EDI, EDI Business Cycle, Components n etc.

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  2. 2. Meaning <ul><li>Electronic Data Interchange ( EDI ) refers to the structured transmission of data between organizations by electronic means. </li></ul><ul><li>A way to exchange transcripts (and other important data) without paper. </li></ul><ul><li>The National Institute of Standards and Technology in a 1996 publication defines Electronic Data Interchange as &quot;the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments. </li></ul><ul><li>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 </li></ul>
  3. 5. Working of EDI <ul><li>Exchange of data with several trading partners directly in a standard format. </li></ul><ul><li>2. Interaction with multiple companies through a central information clearing house. Here each companies add EDI program to its computer to translate the company data into standard formats for transmission, and for reverse translation in the data. </li></ul>
  4. 6. Working of EDI cont… One to Many One to Many Manufacture Manufacture Manufacture Manufacture Supplier Supplier Supplier Supplier Supplier Supplier Third Party Vendor
  5. 7. EDI Business Cycle Company XYZ Computer with EDI software EDI Destination EDI Destination EDI Destination EDI Destination EDI Destination EDI Destination EDI Destination Notes, Documents, Images, Letters, Purchase Orders, Invoice, Queries, Order Entry, Shipment Details, Payment Orders, Bankers Advice, Miscellaneous claims. EDI Service Network Vendors Customers Branch Office Distributors Stores Banks Transporters
  6. 8. Processing of EDI message EDI Service Network External User Interface Network Access Control EDI Service Translation Services Network Access Control EDI Service Translation Services Application Application External User Interface
  7. 9. Benefits of EDI <ul><li>Generation of a paper document on a form by software application. </li></ul><ul><li>Delivery of a few copies of document to the internal dept to be filed and others to the trade partners via postal service. </li></ul><ul><li>Retyping the document received by the trading partner on the form into their computers which may offer introduce errors. </li></ul><ul><li>Generation of a paper acknowledgement and sending it to the originating company. </li></ul><ul><li>Generation of a file containing the processed document by the application program. </li></ul>
  8. 10. Benefits of EDI cont… <ul><li>Conversion of the document into agreed standard format. </li></ul><ul><li>Electronic transmission of the file containing the document over the network , which may link the originating company and its trading partner. </li></ul><ul><li>Automatic generation of the receipt and its delivery over the network to the originating company. </li></ul>
  9. 11. Features of EDI <ul><li>Exchange of structured business information in standard formats between computers. </li></ul><ul><li>It has reduced data entry link, eliminates the need for a paper bases system and improved business cycle. </li></ul><ul><li>EDI transfer structured business documents internally among groups of departments or externally with its suppliers, customers and subsidiaries. </li></ul><ul><li>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. </li></ul><ul><li>The two companies or groups which exchanged information through EDI are called the Trading Partners. </li></ul>
  10. 12. Components of EDI <ul><li>There are 3 types of component </li></ul><ul><li>1. Application service </li></ul><ul><li>2. Translation service </li></ul><ul><li>3. Communication service </li></ul>
  11. 13. Components of EDI cont… Business Application Trading Partner Application Service Transmission Service Communication Service
  12. 14. File Types <ul><li>Edi creates following files as a document passes through the system: </li></ul><ul><li>1. Internal format file (IFF):- </li></ul><ul><li>It contains single document for single trading partner. </li></ul><ul><li>2. External format file(EFF):- </li></ul><ul><li>It contains same data as the internal format file translated into the appropriate standard document format. </li></ul><ul><li>3. Transmission file:- </li></ul><ul><li>it contains one or more document for the same trading partner. Documents of same format are packed into an functional groups. The functional groups going to one trading partner are packaged into an interchanged set. An interchanged set. An interchanged set contains one or more functional groups of documents with the same sender and receiver. </li></ul>
  13. 15. EDI software <ul><li>1.Translators:- </li></ul><ul><li>Every EDI sender and receiver should have EDI translator. It varies based on the computer on which it is going to reside. The computer may be a micro computer or a midrange or a mainframe. Translator reads the fixed length file and generates valid Edi standard and maintains control information. </li></ul><ul><li>2.Application link software:- </li></ul><ul><li>There are 2 components of software, which is generally used to link the existing business application to the EDI data. One is the translator and the other is application link software . Application link software is used to collect information from the business application and then it formats into fixed length computer file and passes it onto translators. </li></ul>
  14. 16. EDI services <ul><li>1. Application Services :- </li></ul><ul><li>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 . </li></ul>
  15. 17. EDI services cont… Document Document Internal Format File Internal Format File Application Service Business Application File Server Callable Routines Management - Interface
  16. 18. EDI services <ul><li>2. Translation service:- </li></ul><ul><li>Converts the out going documents from an internal format file to an agreed external format. </li></ul><ul><li>Translates internal document from external format to EDI internal format file. </li></ul>
  17. 19. EDI Services cont… Translation Service Management - Interface External Format File External Format File Transmission File Internal Format File Internal Format File Transmission File C TFS Transmission file Builder TFB Translator T Converter Transmission file Splitter , , File Server C TFB T TFS
  18. 20. EDI Services cont… <ul><li>3. Communication service:- </li></ul><ul><li>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). </li></ul>
  19. 21. EDI Services cont… Communication Service CC = Communication Controller Transmission File Transmission File Transmission File Transmission File File Server CC Management - Interface Gateway 1 Gateway 1
  20. 22. EDI Standards <ul><li>Transaction set standards:- </li></ul><ul><li>These defines the procedural format and content requirement for specified business transactions. Eg: Purchase orders. </li></ul><ul><li>2. Data Dictionary And Segment Dictionary:- </li></ul><ul><li>These defines the precise content for data content and data segment used in building transaction sets. </li></ul><ul><li>3. Transaction control standard:- </li></ul><ul><li>These define the format s for the information required to control the data interchange </li></ul>
  21. 23. Thank you