2. • WHAT IS ELECTRONIC DATA INTERCHANGE (EDI)?
• ELECTRONIC DATA INTERCHANGE (EDI) IS THE ELECTRONIC
INTERCHANGE OF BUSINESS INFORMATION USING A
STANDARDIZED FORMAT; A PROCESS WHICH ALLOWS ONE
COMPANY TO SEND INFORMATION TO ANOTHER COMPANY
ELECTRONICALLY RATHER THAN WITH PAPER. BUSINESS ENTITIES
CONDUCTING BUSINESS ELECTRONICALLY ARE CALLED TRADING
PARTNERS
3. • WHAT ARE THE MAIN OBJECTIVE OF EDI?
• ELIMINATE DISCRIMINATION, VICTIMISATION AND
HARASSMENT. ADVANCE EQUALITY OF OPPORTUNITY
BETWEEN GROUPS OF PEOPLE OF DIVERSE
BACKGROUNDS AND WITH DIVERSE NEEDS.
4. • WHAT ARE THE 4 MAJOR COMPONENTS OF EDI?
• A: THE 4 MAJOR COMPONENTS OF EDI ARE: STANDARD DOCUMENT FORMAT, TRANSLATION AND
MAPPING, PREFERRED COMMUNICATION METHOD AND COMMUNICATION NETWORK TO SEND
AND RECEIVE DOCUMENTS.
5. • TYPES OF EDI
• DIRECT EDI/POINT-TO-POINT. BROUGHT TO PROMINENCE BY
WALMART, DIRECT EDI, SOMETIMES CALLED POINT-TO-POINT EDI,
ESTABLISHES A SINGLE CONNECTION BETWEEN TWO BUSINESS
PARTNERS. ...
• EDI VIA VAN. ...
• EDI VIAAS2. ...
• WEB EDI. ...
• MOBILE EDI. ...
• EDI OUTSOURCING.
6. • WHAT ARE EXAMPLES OF EDI TECHNOLOGY?
• COMMON EXAMPLES INCLUDE PURCHASE ORDERS (EDI 850),
SHIPPING STATUSES (EDI 214), INVOICES CUSTOMS INFORMATION,
PAYMENT CONFIRMATIONS (EDI 820), AND INVENTORY
DOCUMENTS. THE STANDARD EDI FORMAT ALLOWS COMPUTERS TO
PROCESS EDI DOCUMENTS.
7.
8. • THE ADVANTAGES AND BENEFITS OF ELECTRONIC
DATA INTERCHANGE
• IMPROVED OPERATIONAL EFFICIENCY: AUTOMATING
THE FLOW OF MESSAGES WITH INTEGRATED EDI
IMPROVES THE SPEED AND EFFICIENCY OF YOUR
OPERATIONS BY ELIMINATING THE NEED TO MANUALLY
REKEY DATA IN MULTIPLE SYSTEMS.
9. • FEWER ERRORS: BY REMOVING MANUAL, PAPER BASED
PROCESSES THE OCCURRENCE OF HUMAN ERRORS
IS DRAMATICALLY REDUCED OR EVEN ELIMINATED.
• INCREASED ACCURACY: AUTOMATED MESSAGE VALIDATION
ENSURES THAT ERRORS ARE FLAGGED AND RECTIFIED BEFORE
THEY IMPACT YOUR TRADING PARTNERS AND DATA INTEGRITY IN
YOUR INTERNAL SYSTEMS IS MAINTAINED.
10. • INCREASED RETURN ON INVESTMENT (ROI): AUTOMATION
THROUGH INTEGRATED EDI ENABLES YOU TO MAXIMISE THE
BENEFITS OF EDI AND MOVE BEYOND SIMPLY COMPLYING WITH
YOUR CUSTOMERS' EDI REQUIREMENTS.
• ENHANCED VISIBILITY: EDI PROVIDES FULL TRANSPARENCY OF
THE ORDERING AND INVOICING PROCESS FOR YOU AND YOUR
TRADING PARTNERS. THIS END-TO-END VISIBILITY ENABLES MORE
INFORMED DECISIONS TO BE MADE AND
ULTIMATELY IMPROVES THE SERVICE DELIVERED TO CONSUMERS.
• REDUCED INVENTORY COST:
11. • ADVANTAGES AND DISADVANTAGES OF EDI | MERITS AND DRAWBACKS OF EDI
WITH IMAGE AND DIAGRAM
12. SECURITY :
• ENCRYPTION: EDI DATA GETS CONVERTED INTO A CODE AND SENT TO THE RECIPIENT’S VAN. ONLY
THE INTENDED VAN CAN “READ” THE ENCRYPTED CODE AFTER IT’S RECEIVED.
• AUTHORIZATION VERIFICATION: IF A COMPANY ISN’T REGISTERED ON YOUR EDI VAN, THE
AUTHORIZATION PROCESS WON’T ALLOW THAT COMPANY TO SEND YOU DATA. THE
AUTHENTICATION PROCESS REQUIRES A COMPANY TO SEND ITS DIGITAL CERTIFICATE,
CONFIRMING ITS IDENTITY.
• DIGITAL SIGNATURES: USING AN EDI VAN PROVES THE VALIDITY OF YOUR TRANSACTIONS, SO
YOUR PARTNERS ARE UNABLE TO DENY A TRANSACTION’S VALIDITY, ALSO KNOWN AS NON-
REPUDIATION.
• USERNAME AND PASSWORD PROTECTION: MOST EDI VANS WILL REQUIRE YOU TO HAVE A VALID,
REGISTERED EMAIL ADDRESS AND PASSWORD TO ACCESS THE ACCOUNT.
• DATA INTEGRITY: BOTH THE SENDING AND THE RECEIVING TRADING PARTNER HAVE A
SOPHISTICATED ALGORITHM THAT MUST MATCH TO ESTABLISH DATA INTEGRITY.
