What is EDI?
EDI Made Simple with DataTrans
Electronic data interchange (EDI) is defined as computer-to-computer exchange of business information in a standard and structured format. Organizations are moving to electronic data interchange to streamline and improve operational efficiency of business processes and communications by exchanging data electronically.
Contact our EDI experts to learn more about:
- How EDI can reduce your operating costs
- Scalable solutions: from web-based to complete integration
- Lowering transactions costs and drop ship rates
- Integrating with your business systems and shipping solutions
Why EDI & How Can it Help Your Business?
Businesses adopt EDI to enhance efficiency, improve communication and accuracy of data exchanged, strengthen partnerships, and drive down costs. It eliminates the need to re-key information, reduces error-prone data entry and speeds up the process of exchanging business documents with customers and other trading partners. As seen in the following example, common transactions such as (EDI 850) Purchase Order and (EDI 810) Invoice, helps simplify and streamline the entire transaction process.
Electronic data interchange allows for:
- The automated flow of business information between organizations
- Integrated information flows into and out of respective business systems
- Common “language” among different computer systems and data format
- Data in a standard and structured format is translated into information that is understood by different systems used by organizations
Benefits of EDI
- Minimizes data entry and eliminates expense of manual steps and re-keying data
- Improves accuracy of information exchange, eliminates errors and inaccuracies
- Reduces lead time on orders
- Improves communication and relationships with partners
- Quicker exchange of business information and order to cash cycle
- Enhances efficiency with integrated electronic data interchange streamlining processes
How does EDI work?
EDI optimizes workflow by replacing previous order processes such as mail, fax or email and electronically exchanges documents between two companies with different business systems. A translator will convert the business application data between the sender and receiver, such as trading partners. Trading partners is referred to two separate organizations, for example buyer and supplier or OEM and manufacturer. The order processing life cycle is shortened significantly.
Generate the electronic file to be sent. Document preparation varies based on how each business generates the data, refer below to types of EDI software.
With the use of an EDI solution, the data is translated to or from an EDI file in a standard and structured format. The common “language” among different computer systems and data format is translated into information that is understood by different business systems.
Once the data has been translated to an EDI format, the document is ready to be transmitted to your trading partner. There are different methods of communication to send/receive data.
What companies use EDI?
As companies streamline fulfillment processes, automate operations, and enhance their supply chain, EDI continues to be an important standard that is adopted by all industries including retail, eCommerce, grocery, pharmaceutical, healthcare, automotive, manufacturing, and more. For example, retailers and eCommerce companies like Amazon.com, Walmart and Target, place tremendous value on the importance of utilizing and mandating EDI. This can be attributed to the large demand of their complex supply chain systems. To give further context on how important EDI has become for companies in their everyday interactions, a 2020 statistic states that over 60 percent of companies in the U.S. have adopted this technology into their daily operations. This accounts for roughly 20 billion EDI transactions annually. As markets continue to evolve, ensuring data accuracy and workflow automation is crucial. Let DataTrans help you discover the right solution tailored to your needs and help you realize the benefits your company can experience with a multichannel EDI and eCommerce solution.
Most Common Communication Methods
AS2 which specifies how to connect, deliver, validate and acknowledge data, and creates an envelope for a message which is the sent securely over the internet. An implementation of AS2 involves two machines, a client and a server, communicating with each other over the internet using HTTP/HTTPS protocol.
SFTP is a secure file transfer protocol that provides file transfer and manipulation functionality over any reliable data stream.
VAN, value added network, is a third-party network that acts as an intermediary between trading partners, an is responsible for routing, storing and delivering EDI messages.
HTTP/HTTPS is a communications protocol used to transfer information on intranets and the world wide web.
Direct EDI allows for companies to connect to business partners through various communication methods (including AS2, SFTP, VAN, HTTP/HTTPS). Direct EDI is most often seen in large corporations such as retailers, OEMs or hospitals, that have numerous business partners and exchange a high volume of documents.
How to Get Started with EDI
Easily become EDI enabled and compliant with all your trading partners via WebEDI. As DataTrans adheres to trading partners’ specifications, users maintain compliance with their entire network.
With a seamless sign up link, you will have an analyst working on your behalf, testing directly with your trading partners and setting a go-live date. Attend WebEDI training sessions to anticipate what to expect when you receive your first order.
- WebEDI provides maximum up-time so that your solution is always available to access.
- No special software or computer knowledge required. Only access to the internet.
- Become compliant quickly with minimal cost and very little training.
- DataTrans WebEDI allows users to manage all of their activity and transactions from one simple, easy to use webpage.
What are EDI Standards?
ANSI ASC X12
ANSI ASC X12 is the official designation of the U.S. national standard body for the development and maintenance of EDI standards. The most widely used standard in the United States and much of North America.
EDIFACT, known as Electronic Data Interchange for Administration, Commerce and Transport, is the international standard developed under the United Nations. The EDIFACT standard provides messages which allow multi-country and multi-industry exchange.
HIPAA (Health Insurance Portability and Accountability Act) is a subset of X12 with healthcare specific requirements. Part of the HIPAA initiative seeks to establish standardized mechanisms for electronic data interchange, security, and confidentiality of all healthcare-related data.
Tradacoms is an EDI standard introduced and implemented for the UK retail sector. Tradacoms was introduced in the early 1980s and is maintained by the UK Article Numbering Association now known as GS1 UK.
Types of EDI Solutions
EDI Outsourcing (also known as B2B outsourcing and EDI data management solutions), is designed to enable companies to communicate business data electronically. Outsourcing EDI allows your company to focus on your business while a team of specialists manage your EDI environment. A few outsourcing software options include: WebEDI, EDI VAN, Mobile EDI.
WebEDI (also known as Web EDI or web-based EDI), provides EDI communication through an internet browser. WebEDi is a simple, affordable, easy-to-use solution for companies to connect, manage documents and process transactions. Learn more about DataTrans WebEDI.
EDI Van, value added network (VAN), is a third-party network provider that is solely responsible for routing, storing and delivering messages to and from the sender/receiver. Learn more about DataTrans VAN solutions.
Mobile EDI provides user access to WebEDI via mobile device with basic/limited functions like other software applications/mobile apps.
PARTNER WITH DATATRANS SOLUTIONS TO
Connect, Integrate, Automate & Expand Your Business
Connect to your network of trading partners
Fulfill orders faster and on time
Streamline your order fulfillment process`
Leverage your EDI capabilities to expand your network of partners
Elimination of rekeying errors mitigating charge backs
Receive and respond in minutes
EDI improves the overall order processing
Connect with any trading partner
DataTrans is the leading EDI service provider that maintains connections with thousands of companies allowing users to easily manage activity within our cloud-based portal, WebEDI. We are constantly adding new companies to our network and we try to keep this list as current as possible. Scroll through to view a few of our trading partners below. For more information select see all trading partners.
Easily integrate with any shipping service, accounting program, eCommerce solution, ERP, 3PL, WMS, API connection and more.explore integrations
DataTrans is the industry's most trusted EDI and eCommerce service provider. We take pride in providing live, responsive, knowledgeable U.S.-based support. DataTrans acts as an extension of your company, your very own EDI department helping you connect, automate and expand your business. Learn more about DataTrans, read our reviews & get started today.
I personally have been working with Datatrans for over 10+. DataTrans services, customer support and tech capabilities/offerings are like no other. We just recently we migrated from Quickbooks Enterprise to Quickbooks Online. All I can say is WOW! They had us up an running in no time and communicated with us every step of the way. They are truly partners in every sense of the word. I will never use anyone else!
-Shannon Peters, LunchSkins
Learn more about LunchSkins
AMG Engineering & Machining, Inc.
From the very beginning, the analyst that I was working with was very knowledgeable and supportive. Within a short amount of time your team was able to make customizations to allow us to better assist our customers. The WebEDI portal is a definite plus because it provides us with all of the detailed information that we need and it is very easy to navigate. Lastly, your customer support staff is simply amazing!! They provide us with the assistance we need in a timely manner no matter the situation. We look forward to continuing our partnership with DataTrans for years to come!!
– LaToya Torrance , AMG Engineering & Machining, Inc.
Learn more about AMG Engineering & Machining, Inc.
LatchPal by Happy Fig
We’re thrilled to be working with DataTrans; they provide wonderful customer service, understand our organization’s needs, and have delivered custom solutions to help us grow. DataTrans is a true partner in every sense of the word. So glad we’ve found them.
Melissa LaHann, LatchPal by Happy Fig
Learn more about LatchPal