Do you speak my Lingo? A users guide to EDI Jargon!

In a previous post we spoke about common EDI acronyms and what they stood for, now let’s take this one step further and highlight some commonly used EDI jargon terms and what they mean to you the end user.

EDI Standards - EDI standards are formats for EDI documents (transactions sets) that specify what information goes where within an EDI document. Usually your specific industry or trading partners will determine which EDI standard your organization must use. Examples of EDI standards include ANSI X12, EDIFACT, Tradacoms, Odette, oioUBL.

EDI transaction sets – EDI transaction sets are business documents such as purchase orders, invoices, inventory updates, shipping notices, etc.). The EDI transaction set is identified according to which EDI standard it belongs to. For example in the ANSI X12 standard, EDI transactions sets are given a unique 3 digit identifier whereas in the EDIFACT standard, the identifier is made up of groupings of letterings. In ANSI X12 a shipping notice is referred to as an 856 however in EDIFACT it is called a DESADV.

EDI Software – EDI software facilitates sending and receiving EDI transaction sets according to each trading partner’s unique business rules and requirements. The EDI transaction sets are translated and mapped into a form that a user can use, they can be either transported into a web based EDI type portal or they can be integrated directly into the users back end application such as an ERP, Accounting Package, OMS, WMS and so on. Also within the EDI software there should be a translator. The functionality of the translator is that it that converts EDI data into another format.

EDI Mapping – Converting the electronic transaction sets being sent by one system into the format required by the other system. It is the internal programing that changes the files and allows them to process through systems automatically.

GS1/UCC-128 Barcode Labels - A standard way of labelling packages that includes a scan able bar code label that contains the shipping information for the order and is placed on the outer box. Now known as GS1-128 labels, these were formerly known as UCC-128 labels.

Communication Protocol – Is the ability to connect two different computer systems and transfer the data between them. VAN, AS2 and FTP are some of the most popular methods used in EDI.

Value Added Network – Commonly referred to as a VAN is a network that hosts the exchange of EDI data. A VAN transports the data from one system to another.

EDI Standards Version – A segment that identifies a specific release of the ANSI X12 or EDIFACT standards that may be used by the trading partners. Commonly used versions include ANS! X12 version 4010, version 4030, version 5010 or EDIFACT version D96A.

Functional acknowledgement – An EDI transaction set that is sent by the receiver to the sender to let them know that the previous EDI transaction set was received. It may be referred to as an FA or 997 in ANSI X12 terms.

Trading Partner – A business with whom your organization trades or exchanges goods and/or services. For example if an organization was a wholesale distributor its trading partners may be Walmart, CVS, Amazon and a 3PL (third party logistics provider).

EDI Compliant - A client is capable of transmitting data electronic via an EDI provider and meets the standards and requirements for doing so.

For further information and on the various EDI jargon used please feel free to reach out to the B2BGateway sales team at +1 (401) 491 9595 / +353 61 708533 or email Sales@B2BGateway.Net

The essential components required for implementing and running a successful EDI operation.

 

To implement and run a successful end to end EDI communication with your trading partners, the following five components are essential:

 
EDI Translation Software: Although the concept of EDI was introduced to have a sole standard for the exchange of electronic data, overtime and across multiple market sectors, many different EDI standards have emerged such as ANSI X12 (predominantly used in North America), EDIFACT (Europe and Automotive sector), Tradacom (UK), Odette and much, much more. In fact within the same standard there are now multiple versions or upgrades, take ANSI X12 version 4010, version 4030 or version 5010 as an example. In order to deal successful and seamlessly with all these standards and versions within standards, it is essential that you have a robust EDI software translator in place.
 
Data Mapping: Data mapping is the converting of 0information from one location to another. In EDI, data mapping converts a user’s application data into the required EDI file format, and vice versa. Mapping outbound data involves establishing what information from the ERP or accounting software goes where in an EDI file. The data must be properly arranged and formatted so that it conforms to both the EDI standard required and the trading partner’s rules and regulations.
 
Communication Network: The EDI transaction sets can be transported between trading partners over numerous different methods such as a VAN (Value added Network), AS2, FTP, FTPs, etc. When trading with multiple customers, you will probably need the ability to handle all of the aforementioned communication protocols as different organizations will use different protocols.
 
Integration: Although there are some stand-alone EDI systems that may suit very small operations or seasonal companies, in order to get the best ROI out of using EDI, any organization should integrate their EDI solution with their back end ERP/Accounting Software/OMS, for example QuickBooks, NetSuite, Sage, SAP, Aptean, Microsoft Dynamics, Brightpearl, Acumatica, etc.. Integration with back end software removes the need to re-key data, thus providing further automation and reducing errors.
 
Support: It is one thing to get a good EDI system in place, but yet quite another to make sure that that system runs smoothly 24/7. Any system that does not run 24/7 or is prone to hiccups could be costing your organization new orders and therefore costing you lost income. Having good support will also keep your organization functioning seamlessly as trading partners require system upgrades or new EDI transaction sets to be introduced.
 
B2BGateway is a full service EDI provider and handles all of the vital components listed above on behalf of thousands of clients worldwide on a daily basis. If you would like to know more about B2BGateway’s full service EDI and automated EDI solutions, please call +1 401 491 9595 (North America)  / +353 61 708533 (Europe) or email Sales@B2BGateway.Net