What is EDI? This is a question many small business owners ask themselves when they are presented with a trade opportunity from a big box retailer. Most big box stores require EDI for a supplier to receive, fulfill and ship purchase orders. An EDI provider makes you EDI compliant and makes the trade possible while an EDI management software such as Acctivate helps tremendously when it comes to managing large, multi-line orders going to one or multiple distribution centers. So what is EDI? We break it down into the basics for you so you can be better prepared for your future trading. Learn more here: acctivate.com/what-is-edi

1. What is EDI?

2. What is EDI?
150,000+ companies world-wide trade using EDI.
If you engage in trade with a Big Box retailer,
you will use EDI too.
Learning the basics of EDI can help you make the
most out of your trading experience.

3. EDI ( electronic data interchange ):
An exchange of information between
systems with little to no human
intervention
Eliminates data re-entry
Reduces errors
Increases accuracy
Automates routine tasks
Quickens order & transaction processing
Improves trading partner relationships
The Definition

4. The Players
Trading Partners:
Big box retailers such as Walmart®,
Target®, Lowe's®, Home Depot®, etc.
(VAN) Value Added Network:
An EDI provider such as SPS Commerce™,
TrueCommerce™, or B2B Gateway®.
Your System:
An EDI management software such as
Acctivate.

5. Trading Partners:
Your customers you will be communicating with through EDI
transactions.
VAN:
The VAN processes the interchange of data between systems.
Your System:
Acctivate - Your Order Fulfillment & Inventory management
solution.
The Roles
Most require EDI compliance beforehand.
EDI compliance is achieved through the VAN.

6. TP VAN
850
856 & 810
How it Works
The Trading Partner's system sends
purchase orders (850)
electronically to your system.
The Advanced Shipping Notice (856)
is sent electronically from Acctivate
to your trading partner's system.
The invoice (810) is sent
electronically from Acctivate to
your trading partner's system
(The VAN facilitates
all communication
between systems)
*EDI Document Paths Vary with 3PL Involvement

7. A Real World Example
Walmart: 5000 stores, 42 distribution centers (deliver to 120 stores each)
You got the deal! But before Walmart takes your product national, they
send orders (through EDI) to your system for 4 orders for 4 stores, going to
2 distribution centers.
The orders are in! This is where Acctivate (an EDI management software)
comes into play.
Acctivate, designed to understand EDI, will be the guide in ensuring the right
orders are packaged, labeled, grouped and shipped to the right place.
Imagine if you take orders for all 5000 stores to be shipped to 42 different
distribution centers. Your system needs to be able to read the orders as 42
grouped shipments - not 5000 separate shipments.
The VAN makes trading possible by facilitating the communicates between
Walmart and your system.
A VAN makes you EDI compliant. An EDI management software streamlines
your operations, improves accuracy, and boosts efficiency.

8. Distribution Center 2
Distribution Center 1Store 1
Store 2
Store 3
Store
4
3PL
Store 1
Store 2
Store 3
Store 4
Store 1
Store 2
Store 3
Store 4
TP
TP
TP
Distribution Center
(Product Movement)
(Product Movement)
(Product Movement)
(Product Movement)
(Product Movement)
(Product Movement)
(Product Movement)
How Your Product Moves
(Walmart)
(Walmart)
(Walmart)

9. To learn more about Acctivate & EDI management,
please visit acctivate.com or call 817-870-1311.