The document provides an overview of electronic data interchange (EDI). It discusses the evolution of EDI from the late 1970s for transmitting data between organizations. It describes what EDI is, common EDI transaction types like purchase orders and invoices, and EDI standards like ASC X12 and EDIFACT. The document also outlines different types of EDI implementation methods and gives examples of large companies that use EDI like Walmart. In under 3 sentences.

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2. TODAY’S AGENDA
• WHAT IS E-COMMERCE
• EVOLUTION OF EDI
• WHAT IS EDI
• EDI TRANSACTIONS
• TYPES OF EDI TRANSACTIONS
• TYPES OF EDI
• ROLE OF EDI
• HOW DOES IT WORKS
• BENEFITS OF EDI
• FACTS & FIGURES
• CASE IN POINT
• EDI - CLIP
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3. • E-Commerce - is a very common term that
refers to the exchange of information via
electronic media:
– B2C - the electronic exchange of
information between Business &
Consumer i.e. booking airline tickets
and hotel reservations or buying
books, shoes and clothes online.
– B2B - the electronic exchange of
information between two businesses
– B2G – e-Invoicing mandates require
that businesses providing goods and
services to any government entity –
educational, medical, transportation,
local and federal offices – must
e-Invoice (Nov. 27, 2018).
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E-COMMERCE

4. EVOLUTION OF EDI
• In Late 1970’s and Early 1980’s for E-Commerce to Transmit data
from one organization to another Organization.
• Rapid-response was building.
• Supply chain visibility was required.
• Big data and growing use of business analytics was coming into
the scene.
• Uses of technology were in the accounting and financial areas
primarily focusing on keeping track of revenue and ensuring that
bills to suppliers were paid on time.
• By Late 1980’s Information technology resources and software
systems were developed and designed to help facilitate supply
chain operations – EDI was born.
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5. The Evolution of EDI
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Broadly defined
communications protocol for
exchanging documents
among computers
– Stage 1: 1970s–1980s—
Document automation
– Stage 2: Early 1990s—Document
elimination
– Stage 3: Mid-1990s—Continuous
replenishment/access model

6. EDI
ELECTRONIC DATA
INTERCHANGE
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Electronic data interchange (EDI) is the electronic movement
of data between or within organizations in a structured,
computer-retrievable data format that permits information to
be transferred from a computer program in one location to a
computer program in another location.
EDI is used for electronic funds transfer (EFT) between
financial institutions, which facilitates such common
transactions as the direct deposit of payroll checks by
employers, the direct debit of consumer accounts to make
mortgage or utility payments, and the electronic payment of
federal taxes by businesses.

7. • Another common application of EDI involves the
direct exchange of standard business transaction
documents from one business to another via
computer.
• Such as:
– Purchase orders
– Invoices and
– Bills of lading
 EDI is mainly used by retail businesses as part of
their electronic scanning and point-of-sale (POS)
inventory replenishment systems.
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EDI – ELECTRONIC DATA INTERCHANGE

8. TYPES OF DATA MOVEMENT
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9. How EDI works
with the help
of a Diagram
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10. How EDI Works?
• User Places an Order into the Computer
• That Order goes through an interface
program.
• The Application edits the Order and relays
it to intermediate EDI Files.
• Purchase Order is changed to EDI.
• Translation program functions with several
programs.
• It allows receiver's system to interpret
order.
• The network proceeds to take the order.
• From EDI’s format it is changed back to
sender’s Original format.
• This allows the receiver to read the
document.
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11. MOST COMMON EDI TRANSACTIONS
BETWEEN BUSINESSES
• PURCHASE ORDERS – What you Want, How
Much You Want, What Variety you Want,
When &Where to Ship..
• INVOICES – How Much in What Currency and
When to Pay..
• ADVANCED SHIPPING NOTICES – Information
of Delivery, Notification to Client of Shipment..
• FUNCTIONAL ACKNOWLEDMENT – Receiving
of acknowledgement electronically..
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12. EDI TRANSACTION TYPES
• ASC X12 TRANSACTIONS – US BASED
• EDIFACT TRANSACTIONS – INTERNATIONAL
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14. BELOW MENTIONED TERMINOLOGIES ARE USED IN EDI
between trading partners involved in administration,
commerce and transport. Internationally or Nationally.
http://www.unece.org/trade/untdid/d08a/trmd/htm
• CALINF – This specification provides the definition of the Vessel call information message
• COARRI - This specification provides the definition of the Container discharge/loading report
message
• CUSCAR - This specification provides the definition of the Customs cargo report message
• SANCRT - This specification provides the definition of the International movement of goods
governmental regulatory message
• CODECO – This is a message by which a terminal, depot, etc. confirms that the containers
specified have been delivered or picked up by the inland carrier (road, rail or barge).
• COSTCO - Container stuffing/stripping confirmation message.
• CUSDEC - This specification provides the definition of the Customs declaration message.
• PAXLST - This Passenger List Message permits the transfer of passenger/crew data from a
Customs, Immigration or other designated authority in the country of departure to the
appropriate authorities in the country of arrival of the means of transport.
• CUSRES - This specification provides the definition of the Customs response message
• CONTRL - This specification provides the definition of the Purchase Order Received message
• GESMES - This specification provides the definition of the Generic statistical message
• PRODAT - This specification provides the definition of the Product data message
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15. EDIFACT
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16. ASC X12
TRANSACTIONS
• 204 Motor Carrier Load
Tender
• 214 Transportation Carrier
Shipment Status Message
• 754 Routing Instructions
• 810 Invoice
• 846 Inventory Inquiry/Advice
• 850 Purchase Order
• 855 Purchase Order
Acknowledgment
• 869 Order Status Inquiry
• 944 Warehouse Stock
Transfer Receipt Advice
• 997 Functional
Acknowledgment
ASC
(Accredited Standards Committee)
X12 develops and maintains EDI
standards that facilitate electronic
data interchange relating to business
transactions.
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18. TYPES OF EDI’s
• Direct EDI/Point-to-Point (End to End)
• EDI via VAN or EDI Network Services
Provider
• EDI via AS2
• EDI via FTP/VPN, SFTP, FTPS
• Web EDI
• Mobile EDI
• EDI Software
• EDI Outsourcing
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19. Direct EDI/Point-to-Point
• Direct EDI, sometimes called point-to-point EDI,
establishes a single connection between two
business partners.
• In this approach, you connect with each business
partner individually.
• It offers control for the business partners and is
most commonly used between larger customers
and suppliers with a lot of daily transactions.
• Wal-Mart.
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20. EDI via VAN /
EDI Network
Services Provider
• An alternative to the direct EDI model is an EDI
Network Services Provider, which, prior to the
Internet, was referred to as a Value-Added
Network (VAN).
• Many businesses prefer this network model to
shield them from the ongoing complexities of
supporting the varying communication protocols
required by different business partners.
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21. EDI via AS2
• AS2 (Applicability Statement 2)
is an Internet communications
protocol that enables data to
be transmitted securely over
the Internet.
• Security is achieved by using
digital certificates and
encryption.
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22. EDI via FTP/VPN,
SFTP, FTPS
• File Transfer Protocol (FTP)
over Virtual Private
Network (VPN), Secure File
Transfer Protocol (SFTP)
and File Transfer Protocol -
Securely (FTPS) are
commonly-used
communication protocols
for the exchange of EDI
documents via the
Internet.
• Any of these can be used
to connect to business
partners directly (Direct
EDI) or via an EDI Network
Services Provider.
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23. Web EDI
• Unlike EDI via AS2, Web EDI conducts EDI using a
standard Internet browser.
• Organizations use different online forms to exchange
information with business partners.
• Web EDI makes EDI easy and affordable for small- and
medium-sized organizations and companies that have
only occasional need to utilize such a service.
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24. Mobile EDI
• Users have traditionally accessed EDI
by a private network such as a VAN or
the Internet in order to send and
receive EDI-related business
documents.
• Mobile EDI has had limited adoption,
in part due to security concerns with
mobile devices across an EDI
infrastructure, but mainly due to
restrictions with the mobile devices
available.
• The screen quality and size of devices
has been unsuitable, but there is a
growing industry developing software
applications (‘apps’) for downloading
onto mobile devices so it is only be a
matter of time before you will be able
to download supply chain and EDI
related apps from private or corporate
app stores.
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25. • Implementing EDI software behind a company
firewall is sometimes the preferred option.
• This approach assumes that a company has the
correct internal resources to be able to implement
the software and maintain it on an ongoing basis.
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26. EDI Outsourcing
• EDI Outsourcing (also referred to as
B2B Managed Services and B2B
Outsourcing) is a fastest-growing
option that enables companies to
use external specialist resources to
manage their EDI environment on a
day-to-day basis.
• This is in part driven by companies
wanting to integrate to back office
business systems such as Enterprise
Resource Planning (ERP) platforms.
• Many companies do not want to
use their internal resources to
undertake this ongoing type of
work so they outsource it instead.
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LIMITATIONS OF EDI

34. Problem Faced by SAYRE - one of the Many Companies
doing work Manually – “One of the frustrating
challenges was producing accurate invoices for multiple
products with complicated tax rates. It became very
time consuming and inefficient.”
Problem Solved working with EDI – “It was a lot
more helpful and the transition was very quick,
very smooth and very painless, the process is
very intuitive and straightforward because
everything is right there on the screen”
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35. INDUSTRY WISE EDI USAGE
• Automotive
• Distribution
• Energy
• Government
• Grocery
• Hard line retail
• Healthcare
• Home furnishings
• Home improvement
• Industrial
• Office supplies
• Pharmacy
• Publishing
• Soft line retail
• Specialty
• Sporting goods
• Third party logistics
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36. A-Z OF COMPANIES USING EDI
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160,000 Companies Worldwide

37. Some 500 Pakistani Companies Using EDI
• Rose Beauty Parlor
• WestPoint Electronics
• B&K Accountants
• Bhayani Global Services
• Mughal Import Export Services
• MAF Clearing & Forwarding Co.
• Chughtai Associates
• Shaheen Freight Services
• Pak Mega Enterprises
• Innovative Business Solution
• Geo Engineering Pvt. Ltd
• Khan Enterprises
• PAK AIR CARGO
• Prime International Services
• Green Resources Pakistan
• Agha Group of Services
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38. Some Facts & Figures of Giant Companies with EDI:
Retailers are adding more products to build a larger assortment of product offerings.
How are they doing this? They are not building bigger stores. Instead they are adding new
products to their web stores and revamping what is sold in stores to stay close to their
customers’ needs.
 Home Depot is expanding its depth and breadth of products and now has 600,000 items
available from its online store. A typical Home Depot store stocks about 35,000 items.
 Wal-Mart supercenter has about 150,000 different products. But online, Wal-Mart offers
over 5 million items.
 Sears says they have 30 million products available from their web store.
 Target announced in October the addition of 35,000 new items and free shipping for the
holiday season.
 Amazon, a major driver of competitive retail trends and whose aim is to “sell everything to
everyone,” sells over 200 million products
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39. Case in Point Wal-Mart and Technology
 Wal-Mart has become the world’s largest and
most powerful retailer with the highest sales
per square foot, inventory turnover, and
operating profit of any discount retailer. Wal-
Mart began with the goal to provide
customers with the goods they wanted when
and where they wanted them. Next, it
focused on developing cost structures that
allowed it to offer low, everyday pricing. The
replenishment of inventory is one of the key
facilitators behind this strategy.
 Wal-Mart’s success is primarily due to
efficient integration of supplier,
manufacturing, warehousing, and
distribution to stores. There are four key
components of its supply chain strategy:
supplier partnerships, cross docking and
distribution management, technology, and
integration.
Technology plays a key role in Wal-Mart’s
supply chain serving as the foundation of its
efficient and effective supply chain. Wal-
Mart has the largest information
technology infrastructure of any private
company in the world. Its state-of-the-art
technology and network design enable Wal-
Mart;
to accurately forecast demand,
track and predict inventory levels,
create highly efficient transportation routes,
manage customer relationships and service
response logistics.
Wal-Mart designed a point-of-sale system
that improved
 customer services,
 decreased inventory throughout its supply chain,
 improved the overall competitive capability
of the company.
EDI is the underlying technology that enables the system
to work.
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40. Case in Point - Highlights
There are a number of benefits to Wal-Mart’s
supply chain partners. For suppliers:
 Demand is visible
 Obsolete stocks are minimized
 Volume increases
 This networked supply chain process has helped to
change the way consumer-products companies and
wholesaler distributors do business with retailers.
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41. Thank You!!
Questions are Most Welcome..
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