EDI EDI Short for Electronic Data Interchange the

EDI Short for Electronic Data Interchange ◦ the transfer of data between different companies

EDI Business Transaction Cycle 1. 2. 3. 4. 5. 6. 7. Here is a

EDI FOB*CC*****OR*YORK FOB = the segment name FOB 01 ◦ CC = shipment method

EDI - Advantages Automated Standardized Efficient – handle large volumes Cost Savings – each

EDI - Disadvantages Older technology Standardized – less flexible format Startup costs Network downtime

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EDI

EDI Short for Electronic Data Interchange ◦ the transfer of data between different companies using networks, such as the Internet or a VAN. ◦ ANSI has approved a set of EDI standards known as the X 12 standards. Source: www. webopedia. com/TERM/E/EDI. html - 46 k - Sep 14, 2005

EDI Business Transaction Cycle 1. 2. 3. 4. 5. 6. 7. Here is a typical EDI business transaction cycle using a dial-up or network connection to a Value-Added Network (VAN): Customer sends a purchase order (EDI 850) Supplier sends an acknowledgement notice (EDI 997) Supplier sends an advance shipping notice (EDI 856) Customer sends an acknowledgement notice (EDI 997) Supplier sends an electronic invoice (EDI 810) Customer sends another acknowledgement notice (EDI 997) Customer sends an Electronic Funds Transfer (EFT) payment Source: http: //www. edi-101. com/edi-cycle. htm

EDI FOB*CC*****OR*YORK FOB = the segment name FOB 01 ◦ CC = shipment method of payment either CC (collect) or PO (prepaid only) ◦ Mandatory and can be 2 0 f 2 bytes in length FOB 02 FOB 03 FOB 04 FOB 05 FOB 06 ◦ OR = origin of shipping FOB 07 ◦ YORK = FOB city 1 to 80 bytes long * = separates the elements in the segments

EDI - Advantages Automated Standardized Efficient – handle large volumes Cost Savings – each transaction $0. 02 to $0. 05 Eliminates errors Fast

EDI - Disadvantages Older technology Standardized – less flexible format Startup costs Network downtime stops process Limit trading partners to those with EDI Debugging issues