EDI Integration process ensures that the documents are electronically transferred with minimal errors and maximum accuracy. Check out the best practices!

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EDI Integration: Process Overview &
Benefits for Multiple Channel Partners

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Various EDI Integration Standards
• There are standard formats of EDI documents, such as EDI 810
(for invoices), EDI 855 (for order responses), EDI 856 (for
dispatch advice), and EDI 850 (for orders), which ensures both
the supplier and customer abide by the standard format and
segments (fields) in the EDI file (also known as edifact file), so
they are clearly understood and interpreted by either party.
• This process also ensures that the documents are automatically
generated in the corresponding ERP system when sent or
received from a supplier or customer.
• This ensures a faster document transmission process and that
there is no need for manual entry.

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• Reduction in human error and enhanced transaction security due to data being validated at
various levels (Edifact file, SOA, B2B, Trading partner)
• Increased business efficiency by making sure that statutory and legal compliance are met
and validated at all times
• The scalable process to add new customer sites easily and efficiently
• Capability to monitor errors and fix them proactively
• Capability to process orders in bulk
The following are some of the benefits provided by B2B/EDI Integration

4. EDI Integration General Process Overview
Typically, an EDI flow includes an SOA layer and a B2B layer. SOA connectors convert incoming data and
output data into a standard format. This ensures that the generated EDI file is in a format that the customer
or the trading partner can readily accept.
B2B gateways are a communication layer between two trading partners. This is generally a two-way
communication layer that uses the EDI messaging format. The other formats usable by the B2B layer are
XML and cXML. THE B2B layer contains certain validation points corresponding to the respective
organization to make sure that both the incoming and outgoing data adhere to a certain standard, to ensure
that the data is secure and any unwanted data segments are rejected or transformed.
Trading partners help transform and map data between the customer and supplier. Since there are certain
legislative and statutory requirements of each country and region, the trading partners make sure that the
EDI documents abide by those requirements and help send the documents to the central agency of the
country/region.
4

5. The different types of EDI are EDI through VAN, EDI through AS2, and
EDI using FTP/SFTP
5
• AS2 (Applicability Statement 2) is an internet
communication protocol that enables data to
be transmitted securely over the internet
using digital certificates and encryption.
• EDI through VAN (Value Added Networks) is a
process where there are mailboxes that help
to send and receive the EDI messages.

6. EDI Integration Best Practices
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To make sure that the documents are transmitted and received securely and without errors, certain
best practices need to be followed.
• Carry out a detailed Gap Analysis to determine the segments (fields) in the edifact file sent/received
against the supplier/customer file.
• There are cases when the customer may require a certain segment/field for specific scenarios.
• If a trading partner is responsible for data translation and mapping, ensure that the edifact file
remains the same and that the trading partner should be responsible for the correct mapping for
different customers.

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• A dashboard should show if the EDI document has been sent, delivered, not sent, in process, or
rejected status. If possible, the reason for rejection should also be configured through code, which
will help identify the reason for rejection, which could be due to a missing segment or an incorrect
value of a segment.
• Prepare a detailed requirements document to identify the scenarios that the customer/supplier wants
in EDI Integration.
• The GTIN numbers should be mapped appropriately with internal/external item numbers of the
supplier/customer.

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The diagram shows an order-to-cash process showing the transmission of EDI documents
between the business partners during various steps of order fulfillment and order acceptance.

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In conclusion, implementing EDI integration for multiple channel partners can streamline business
operations and improve the efficiency of supply chain management. With EDI, businesses can reduce
errors and delays in document processing, minimize costs associated with manual data entry, and
enhance collaboration with their partners.
Moreover, EDI integration can help businesses stay competitive in the digital marketplace by enabling
them to deliver goods and services faster, more accurately, and at lower costs. Therefore, businesses
that adopt EDI integration can reap numerous benefits, including improved productivity, increased
customer satisfaction, and enhanced profitability.
Conclusion

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11. 11
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San Jose, CA 95110, USA
Phone
+1-408-899-7200
Email
info@jadeglobal.com
Website
www.jadeglobal.com
USA I CANADA I UK I AUSTRIA I INDIA
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