EDI 101 Agenda EDI Terminology Industry Standards EDI

EDI 101

Agenda • EDI Terminology • Industry Standards • EDI Communications Options including Value Added Networks and the Internet • EDI Transaction Sets and Their Usage in Retail • Advance Ship Notice and Bar Code Label Usage • EDI Document Structure – An in depth look at the 850 purchase order, 810 invoice, and 856 ship notice • Product Identification including UPC codes and the new GTIN • Chargeback Avoidance • RFID

What is EDI? • EDI is the exchange of electronic business documents between trading partners using a pre‐defined formatting standard • North American standard is ANSI ASC X 12 ‐ UCS Subset often used for the grocery industry ‐ VICS Subset, in addition to X 12 also used for the retail industry • Each trading partner defines an “implementation standard” which is unique to that company

EDI is like Certified Mail

VAN vs. AS 2 • VAN (Value Added Network) ‐ Traditional method of communication for EDI data ‐ Charges are based on Kilo‐characters ‐ Safe method for transferring data • AS 2 ‐ ‐ Becoming more common Uses certificates to verify partners Lacks backup/restore capabilities of VAN More expensive in initial setup than VAN

VAN vs. AS 2

EDI Data • Raw EDI Data ‐ Designed to be compact and machine/software independent ‐ Contains no special formatting or control characters • Enveloping Structure ‐ Data which describes and routes the EDI data to the appropriate mailbox

Functional Group Interchange Envelope Communications Session Enveloping Structure Communication Transport Protocol Inter change Control Header Functional Group Header Transaction Set Header ISA GS ST ASN #1 Transaction Set Trailer Transaction Set Header SE ST ASN #2 Transaction Set Trailer Functional Group Header Transaction Set Header SE GE GS ST Invoice Transaction Set Trailer Functional Group Trailer Inter change Control Trailer Communication Transport Protocol SE GE IEA

What is Integrated EDI? • EDI data is exchanged in an automated fashion without re‐ keying data ‐ Inbound documents, such as Purchase Orders, are converted without the need of data entry ‐ Outbound documents, such as Invoices or Advance Ship Notices are generated as a natural part of the shipping/billing process

What is Integrated EDI? • Instead of a mere importing process, integrated EDI makes the data meaningful to the receiving system ‐ Customer IDs, Part Numbers, and Ship to Locations, etc. are cross‐ referenced to the receiving system’s codes ‐ Qualifiers are checked to correctly interpret the meaning of the data ‐ The data interacts with the system during integration

EDI Terminology • Each line of raw data in an EDI document is called a segment. The sample below represents a segment BIG*20010315*00003811*20001026*22137***DR~

EDI Terminology • A segment is made up of four individual parts: 1. Segment id 2. Elements 3. Element separators 4. Segment terminator

Segment ID • The segment id is the first piece of data in the segment and is followed by an element separator. It describes what specific information the segment contains. In the sample below, the segment id is BIG, which indicates that this is the beginning segment of an 810 invoice. BIG*20010315*00003811*20001026*22137***DR~

Elements • Elements are the individual pieces of data in the segment. In our example, the elements are 20010315, 00003811, 20001026, 22137, two empty elements, and DR. BIG*20010315*00003811*20001026*22137***DR~

Element Separators • An element separator is a unique character that separates each element in the segment and separates the segment tag from the elements. In the sample below, the element separators are the asterisks. BIG*20010315*00003811*20001026*22137***DR~ • The element separators tell the translator where one element ends and the next one begins. Therefore, the element separator must be a character that is not typically used in anything else. For example, you wouldn’t want to use the letter R as an element separator. If you did, your translator wouldn’t read PURCHASE as the word PURCHASE, but instead as two separate elements, PU and CHASE.

Segment Terminators • The last character in the segment is the segment terminator. Just as a period tells you that you’ve reached the end of a sentence, the segment terminator tells the translator that it has reached the end of the segment. In our example, the segment terminator is the tilde. BIG*20010315*00003811*20001026*22137***DR~

Reading the Data • Now that you know the individual pieces of the segment, it’s time to put them together. When reading raw data, a specific piece of data is referred to by its segment tag and two‐digit element number. In our example, the DR would be referred to as the BIG 07.

Reading the Data • To determine the two‐digit element number, start counting with the first element after the segment tag and count each element, including empty elements, until you get to the data in question. For example: 1 2 3 4 5 6 7 BIG*20010315*00003811*20001026*22137***DR~ • It’s important to note that you do not count the segment tag when counting the elements. • It’s also important to note that although there is no data in the two elements between 22137 and DR, you still count those two elements.

Reading the Data • After you know the two digit element number for the data, put those after the segment tag. For single digit numbers like 7, add a zero in front of it to get the two digits. 1 7 BIG*20010315*00003811*20001026*22137***DR~ BIG + 07 = BIG 07 • Once you know which element you’re referring to (BIG 07), you can look that up in the trading partner specs to see what information is expected in that element.

Additional EDI Terminology • There are many terms within EDI • EDI is mostly comprised of acronyms and numbers • Additional terms are available upon request

Industry Standards • In the EDI industry, most trading partners use EDI to reduce the amount of labor and paper necessary to trade information • EDI allows for the trading of data with a common standard so that any accounting system can be used • Standards are approved by DISA ‐ Data Interchange Standards Association. The organization responsible for performing the administrative duties of the ANSI X 12 subcommittee.

Industry Standards • Most US trading partners use the ANSI X 12 standard for trading documents ‐ Retail will sometimes use the VICS substandard ‐ Grocery will use the UCS substandard • Most retail trading partners use version 4010 or higher to trade documents ‐ 4010 was the first standard to use 8 digit dates (Y 2 K compliancy)

EDI Transaction Sets and Their Usage in Retail • Most retail trading partners trade : ‐ ‐ 850 – Purchase Order 810 – Invoice 856 – Advance Shipment Notice 997 – Functional Acknowledgment • Additional documents that are traded: ‐ ‐ 855 – PO Acknowledgment 864 – Text Message 820 – Remittance Advice 860 – PO Change

Advance Ship Notice and Bar Code Label Usage • Advance Shipment Notice. The EDI document transmitted from a supplier to its customer to describe a pending shipment. • Utilized mostly in retail trading • Is used in combination with UCC‐ 128 labels to identify products

Barcodes • Many different symbologies exist ‐ UPC – 12 digits – for single item ‐ UCC‐ 14 (I 205) – 14 digits – for case pack quantity ‐ UCC‐ 128 – 20 digits – for identifying unique carton/pallet • Usually attached to products with labels or screen‐printing

Sample Barcodes UPC UCC-14 UCC-128

Labeling Product or Containers • Create product labels for. . . ‐ Units, Inner Packs, Carton or Pallets ‐ Use of different size or colored labels ‐ Assists with the identification of items • Create UCC‐ 128 labels for pallets or cartons ‐ Used with ASN ‐ Does not directly identify item, but establishes a “license plate” for pallet or carton

ASN Data BSN*00*00000003*20061108*1824*0001 HL*1**S TD 1*CTN 25*4****G*0*LB TD 5**2*UPSN*U*UPS Bill of Lading Number REF*BM*0123456000056 REF*AO*12234567 DTM*011*20061108 N 1*SF*Demo Progression SQL N 4*WALL TOWNSHIP*NJ*07719 N 1*ST**92*200 HL*2*1*O PRF*S 909450 REF*DP*21 Department Number REF*IA*430 N 1*BY**92*200 HL*3*2*P MAN*GM*0000123456000032 HL*4*3*I LIN**UP*123456789013 SN 1**8*EA PO 4*1*8*EA HL*5*2*P MAN*GM*0000123456000049 HL*6*5*I LIN**UP*123456789013 SN 1**8*EA PO 4*1*8*EA CTT*6 UCC-128 Numbers

ASN Data • HL segments show structure of ASN HL*2*1*O Shipment Order HL*3*2*P Pack (Carton) HL*4*3*I Item HL*5*2*P Pack (Carton) HL*6*5*I Item HL*1**S

ASN Data HL*1**S HL*2*1*O HL*3*2*P HL*4*3*I First number increments for each HL segment Second number shows what level the HL is subordinate to

EDI Document Structure • 850 – Purchase Order ‐ Sent to vendor with information regarding what the customer wishes to order ‐ Generally is the first EDI document traded • 810 ‐ Sent to customer with information regarding what is being billed to them for the purchase order ‐ Generally is the second EDI document traded

850 Structure • Header and detail ‐ Header contains information regarding PO number, Ship To , Bill To, Dates and Reference ‐ Detail contains information regarding Items Ordered, Item Description and Case Pack

Sample 850 ST<850<28690003 HEADER BEG<00<SA<S 909450<<20030716 REF<DP<21 REF<IA<430 SAC<N<<VI<OHRO<<<<<<<<<<<REGULAR STORE ORDER DTM<001<20030805 DETAIL PO 1<<48<EA<15. 00<<UP<123456789012<VA<Item 1 SDQ<EA<92<100<24 SDQ<EA<92<200<24 PO 1<<60<EA<20. 00<<UP<123456789013<VA<Item 2 SDQ<EA<92<100<30 SDQ<EA<92<200<30 CTT<1 SE<14<28690003

850 Sample PO Number And Date ST<850<28690003 BEG<00<SA<S 909450<<20030716 REF<DP<21 REF<IA<430 SAC<N<<VI<OHRO<<<<<<<<<<<REGULAR STORE ORDER Cancel Date DTM<001<20030805 PO 1<<48<EA<15. 00<<UP<123456789012<VA<Item 1 SDQ<EA<92<100<24 Item, Price, Qty SDQ<EA<92<200<24 PO 1<<60<EA<20. 00<<UP<123456789013<VA<Item 2 SDQ<EA<92<100<30 SDQ<EA<92<200<30 CTT<1 SE<14<28690003

810 Structure • Header, detail and summary ‐ Header contains information regarding Invoice number, Ship To , Bill To, Dates and Reference ‐ Detail contains information regarding Items Billed, Item Description and Case Pack ‐ Summary contains information regarding totals (Invoice amount, quantity, weight)

810 Sample ST*810*00001 HEADER BIG*20060914*3748**S 909434 REF*IA*1 N 1*ST**92*100 ITD*01*3*0**0**30 IT 1**24*EA*30. 00**UP*123456789012 DETAIL PID*F****ORANGE HANDLE IT 1**30*EA*40. 00**UP*123456789013 PID*F****BLUE HANDLE SUMMARY TDS*202560 CTT*2 SE*12*00001

810 Sample Invoice Number Ship To information Item, price, qty Invoice Total ST*810*00001 BIG*20060914*3748**S 909434 REF*IA*1 N 1*ST**92*100 ITD*01*3*0**0**30 IT 1**24*EA*30. 00**UP*123456789012 PID*F****ORANGE HANDLE IT 1**30*EA*40. 00**UP*123456789013 PID*F****BLUE HANDLE TDS*202560 CTT*2 SE*12*00001

UPC vs. GTIN • UPC – Universal Product Code ‐ ‐ Identifier of single product 12 characters Most commonly found in grocery and retail Current standard and widely accepted • GTIN ‐ Global Trade Item Number ‐ Identifier for trade items developed by GS 1 (comprising the former EAN International and Uniform Code Council). ‐ GTIN is an “umbrella” term used to describe the entire family of GS 1 data structures for trade items (products and services) identification. GTIN numbers may be 8, 12, 13 or 14 digits long, and can be constructed using four numbering structures, depending upon the application used. ‐ Starting to gain traction in the retail industry

Chargeback Avoidance • Chargebacks ‐ Assigned by customer for failing to meet requirements that were established by contract ‐ Can be enforced for faulty data transmissions, faulty barcodes, improper placement of labels

Chargeback Avoidance • When sending EDI, check data against implementation guide • Purchase Barcode Verifier ‐ Used to verify that barcodes are “legible” to a barcode scanner • Audit warehouse controls ‐ Check packages for label placement, products and logistic requirements

RFID • Radio Frequency Identification (RFID) refers to devices that are attached to objects that store data and are able to transmit that data to an RFID receiver. • These devices can be large pieces of hardware the size of a small book or they can be very small devices inserted into a label on a package (commonly known as smart labels).

A Few RFID Definitions • Active tags – RFID tags that contain their own power source and have longer read ranges. • Passive tags – RFID tags that are powered by the signal generated from the reading device. • Read/write tags – RFID tags that can be programmed multiple times. • Read only tags – RFID tags that are programmed once. • EPC (electronic product code) – A set of standards designed to utilize RFID technology for the tracking of individual items, cases and pallets. (Similar to UPC, UCC‐ 14 or UCC‐ 128)

A Few More Definitions • RFID Reader – A device that reads RFID tags. • Smartlabels – Labels with integrated RFID chips. ‐ The concept is that you would continue to produce labels (most likely with bar codes) that are also be programmed with an RFID chip embedded in the label. This would provide all current functionality (human and machine readable text and bar codes) as well as adding RFID functionality. • Slap‐and‐ship – An approach to comply with customer requirements for physical identification of shipped goods. ‐ This method implies you are meeting the customer's requirement by applying the bar code labels or RFID tags, but are not utilizing the technology internally.

Additional sources of research • “A to Z of EDI” by Nahid Jilovec • “From Edi to Electronic Commerce: A Business Initiative” by Phyllis K. Sokol • www. edibasics. com • www. wikipedia. com • www. google. com