Electronic Data Interchange (EDI)

Electronic Data Interchange or EDI is the computer-to-computer exchange of business information using a
public standard. EDI is a central part of Electronic Commerce because it enables businesses to exchange
information electronically much faster, more cheaply and more accurately than is possible using a paper-based
system.
In simple way the EDI enables fast, accurate and reliable exchange of data between the computer systems of
organizations that do business together.

The Need for EDI

For companies of any size, implementing EDI is necessary for maximum competitiveness and growth. It
reduces costs and improves operational performance across your organization. From the start, EDI accelerates
data exchange and sharpens accuracy. Your company and your customers benefit from streamlined
administration, improved information flow, more accurate accounting, better inventory management, and lower
costs. Because electronic transactions are so efficient, customers that use EDI prefer to work with vendors that
have EDI systems in place.
From financial, operational, and technical perspectives, the right EDI solution makes irrefutable business sense.

EDI Documents
Following are few important documents used in EDI −
 Invoices
 Purchase orders
 Shipping Requests
 Acknowledgement
 Business Correspondence letters
 Financial information letters

EDI WORK FLOW

EDI Framework

Step 1: Prepare the documents to be sent

The first step is to collect and organize the data. For example, instead of printing a purchase order, your system
creates an electronic file with the necessary information to build an EDI document. The sources of data and the
methods available to generate the electronic documents can include:

 Human data entry via screens

 Exporting PC-based data from spreadsheets or databases
 Reformatted electronic reports into data files
 Enhancing existing applications to automatically create output files that are ready for translation
into an EDI standard
 Purchasing application software that has built-in interfaces for EDI files

Step 2: Translate the documents into EDI format

The next step is to feed your electronic data through translator software to convert your internal data format into
the EDI standard format using the appropriate segments and data elements. You can purchase EDI translation
software that you manage and maintain on your premises. This requires specialized mapping expertise in order
to define how your internal data is to be mapped (i.e. correlated) to the EDI data. Translation software is
available to suit just about any computing environment and budget, from large systems that handle thousands of
transactions daily to PC-based software that need only process a few hundred transactions per week.
Alternatively, you can use the translation services of an EDI service provider. In that case, you send your data to
the provider, who handles translation to and from the EDI format on your behalf.
Step 3: Connect and Transmit your EDI documents to your business partner
Once your business documents are translated to the appropriate EDI format they are ready to be transmitted to
your business partner. You must decide how you will connect to each of your partners to perform that
transmission. There are several ways, the most common of which include 1) to connect directly using AS2 or
another secure internet protocol, 2) connect to an EDI Network provider (also referred to as a VAN provider)
using your preferred communications protocol and rely on the network provider to connect to your business
partners using whatever communications protocol your partners prefer, or 3) a combination of both, depending
on the particular partner and the volume of transactions you expect to exchange. To learn more about the
various options,

Steps in an EDI System

Following are the steps in an EDI System.
 A program generates the file which contains the processed document.
 The document is converted into an agreed standard format.
 The file containing the document is send electronically on network.
 The trading partner receives the file.
 An acknowledgement document is generated and sent to the originating organization.

Advantages of an EDI System

Following are the advantages of an EDI System.
 Reduction in data entry errors.
 Shorter processing life cycle
 Electronic form of data.
 Reduction in paperwork
 Cost Effective
 Standard Means of communication

Implementation of EDI
Step 1: Develop the Organizational Structure
EDI is a significant investment and developing the correct organizational structure from the
outset will pay dividends as the program evolves.
Key elements of the structure include:
 The EDI Coordinator: An IT professional with in-depth experience in delivering EDI.
The Coordinator may come from in-house or be hired externally, depending on the EDI
experience the organization already has
 The Steering Committee: Headed by the EDI Coordinator, the committee typically
consists of department heads of affected business units, the head of IT and legal
representatives
 Senior Management Sponsor: As with any major IT program, there needs to be senior
management commitment if the EDI implementation is to be a success
 Dedicated EDI Team: The EDI team will be responsible for the actual implementation of
the system.
The EDI Coordinator, as an important part of his/her function, must stay in communication with
all sectors of the company that will be affected by the EDI program to ensure their support and
buy-in. This on-going communication is vital for educating all organizations as to how the EDI
program will benefit them and how it will impact their processes.

Step 2: Undertake a Strategic Review

This analysis identifies the most likely corporate applications for EDI deployment and sets
priorities for conversion to EDI. To this end, factors to be considered include the number of
suppliers, customers or other business partners, and the volume and type of transactions to
be exchanged. It includes a description of the present systems in each functional area and
an explanation of how EDI will improve them.
The issuance and receipt of each type of business document is based on a system of human and
machine procedures, all of which have to be documented and analyzed for EDI efficiencies. For
best results, the goal should be to improve the business cycle rather than simply automate it.
Can EDI:
 Eliminate redundant steps from the business cycle?
 Eliminate redundant data entry?
 Reduce manual effort?
 Reduce the size of inventory?
 Improve customer service by speeding the delivery of goods?
 Improve the relationship with business partners?
 Facilitate larger business strategies, such as Just-in-Time manufacturing?
Fully answering these questions will highlight the business cycles that are likely to benefit most
from the implementation of EDI.

Step 3: Conduct In-depth Analysis

The strategic review highlights where in your organization EDI could have the most benefit.
However, there are other elements to consider before selecting which business cycle to
focus on initially.
These considerations include:
 Which part of the organization is most ready for EDI?
 Which cycle will cost the least to implement EDI?
 Which will deliver the greatest savings/increase in profitability?
Answers to these questions require a different type of analysis. Many companies use two
effective tools:
  Cost Benefits Analysis (CBA): This analysis further identifies the most likely corporate
applications for EDI deployment and sets priorities for conversion to EDI. It includes a
description of the present systems in each functional area and an explanation of how EDI
will improve them. The issue and receipt of each type of business document is based on a
system of human and machine procedures, all of which have to be documented and
analyzed for EDI efficiencies. For best results, the goal should be to improve the business
cycle rather than simply automate it.
 The EDI Survey: The EDI survey of an organization’s customers and suppliers is to
ensure that any EDI system that is created can be supported across a wide business
partner network or a small group of high-volume, high-value business partners. The
survey should include the underlying technologies and skill levels available. It must take
account of the type of data the current systems require, the type of data required by
business partners and the data required by EDI standards.
As reaching the pilot stage of an EDI program for a large organization can be extremely costly,
the ability to cost-justify the program is essential. But, it must be combined with the results of
the EDI Survey. In this way, a final report can be produced covering:
 The scope of the project
 Description of strengths and weakness of existing systems
 Recommended system alternative and its capability to strengthen the company
 Required data integration and document customization
 Reference to alternatives considered but not selected
 Financial data on recommended and rejected approaches
 Timing of system development and funds needed
 List of personnel required to develop and implement the system
 Implementation schedule

Step 4: Develop a Business-Focused EDI Solution

The results of the analysis step provide an organization with the knowledge to develop a
comprehensive specification for the EDI system.
This includes:
 The volume of expected EDI traffic and the IT infrastructure needed to support it
 The capacity of internal network infrastructure to support EDI data
 The network connections needed to manage traffic with business partners
 The programming required to ensure that internal systems comply with the data required
by business partners and with EDI standards
 The amount of customization required to integrate internal and EDI systems
With this information, an EDI system can be designed. There are two particularly important
elements to an EDI system: the EDI translator and the communications model.
The EDI Translator
Usually a package licensed from an EDI software company or EDI Network provider, the EDI
Translator’s role is to interpret the EDI information it receives from the sender and translate it
into a format that the receiver can accommodate. In addition to its primary function, an EDI
Translator often has several sub-systems, including the handling of the EDI envelopes, document
management, audit trails, compliance checking and functional acknowledgements.
The Communications Model
One of the decisions you need to make is the type of communications you will need to connect to
all your partners. There are four basic approaches:
1. Connect directly to each one — this works well for connecting to a small number of
business partners. Your organization is responsible for all mapping, translation, technical
support and reporting. As long as everyone agrees on a single connectivity protocol, e.g.,
FTP over VPN, Rosetta Net, Odette FTP, AS2, a single document format and the
 community size remains relatively small, this approach works well. This is how EDI was
handled in the early days. However, as the size of your community grows, it becomes a
very complex and resource-intensive approach.
2. Use an EDI Network provider — The EDI Network provider facilitates the exchange of
electronic documents via its “document mailbox” service. The sender connects to the EDI
Network and sends its EDI transactions to the recipient’s mailbox. The receiver then
connects to the network to receive documents in its mailbox. This approach relieves all
community members of the resource-intensive responsibilities for supporting all
communications issues, ensures data security and non-repudiation, while providing audit
information, reporting, backup and recovery. This approach avoids many of the
complexities of the direct model. Use of the EDI Network/VAN model for 100% of an
EDI community was extremely popular before the rise of the commercial use of the
internet and large trading networks. It remains a very popular option, but for very large
communities it’s much less common to have 100% of the business partners on the EDI
network.
3. Use Direct Connects for your high-volume business partners and use the EDI
Network for the rest — This approach saves the transaction fees charged by the EDI
Networks when trading with the high-volume business partners, while relying on the EDI
Network to support the high number of low-transaction volume partners.
4. Outsource the EDI program to a Managed Services provider that connects to your
entire community on your behalf — The Managed Services provider receives your
business documents directly from your ERP system (SAP, Oracle, etc.), assumes
responsibility for all the mapping, translation, technical support, data center operations
and reporting. Once documents are ready for delivery to your business partners, the
service provider delivers them either directly to the partners or via the mailbox service,
depending on the individual business partner requirements.

Step 5: Select the Correct EDI Network Provider (VAN)

Your selection of an EDI Network Provider should be focused on your business requirements
more than the provider’s technical capabilities. There are many important issues to consider.
What do you want the EDI Network Provider to do?
Do you require a basic EDI service or are you keen to explore a range of value-added services?
Do you require your provider to deliver training and support to you and your partners? Can your
provider help you rapidly onboard new business partners? Do you need automatic rejection of
documents with bad data before they reach your system? Can your service provider enable your
line-of-business personnel to independently obtain data and reports on-demand and view the
status of your business transactions at all stages in the supply chain? Quite often, the availability
of these value-added services is a more important factor in your decision than cost alone.
What is the Provider’s reach?
How many of your business partners already use a particular VAN? Does the provider have a
strong installed base within your industry sector? Does the Provider have a global presence, not
only for the exchange of documents, but also for providing local customer support?
What is the Provider’s pricing structure?
Most EDI services charge by the amount of kilo-characters (KCs) within a document but other
factors will be important such as whether timely delivery is important and the volume of
transactions being exchanged. Most VAN’s offer flexible pricing structures including pay-as-
you-go and monthly or annual subscriptions.
What is the Provider’s influence in your industry?
Is the provider actively involved within the key industry associations in your sector? Does it
have an active role in the worldwide EDI standards bodies?
Will the EDI Network Provider be around tomorrow?
Does the provider have a proven track record and is it likely to be around for the foreseeable
future? Those organizations with global reach, the most comprehensive range of services, and the
ability to deliver support regardless of worldwide location that will survive. Does your VAN give
you all this?

Step 6: Integrate EDI with the Business

For most EDI systems, the greatest development task is integrating EDI systems with existing
corporate applications. Data required by business partners and EDI standards must be
“mapped” onto data contained in existing systems.
After purchasing the necessary hardware and/or software to support your EDI solution, a skilled
EDI programming staff must next convert the requirements into reality. The staff must be fully
knowledgeable of EDI standards, in-house systems and communication protocols. The basic
tasks that need to be performed include: (1) integrating EDI with your in-house (ERP) business
systems, which means, extracting and loading data; (2) creating the EDI documents by mapping
(correlating) the extracted data to the proper segments and data elements of the EDI transactions,
as well as providing the enveloping and other necessary data; and (3) installing and configuring
the communication software for sending and receiving documents. Each of these processes can
be very complex, particularly when you have many business partners, such as customers, each
with its own requirements. That’s why a good, technically-skilled staff is needed.
Prototyping methodologies, where system prototypes are developed before systems are actually
coded, and Computer Aided Software Engineering (CASE) tools help to streamline system
development. Integration usually consists of three key activities:
 The data analysis portion of mapping
 Mapping via the EDI software
 Development of any custom interface programs or user exits
When selecting a software package or VAN service, check how much of the mapping elements
have already been addressed in the chosen solution. Not only will this impact how easily the EDI
system will integrate with back-office systems, it will speed the integration process and reduce
the cost of custom development.
Integrating EDI with the business often highlights opportunities to re-engineer the business
process and reap further benefits.

Step 7: Integrate Data across the Business

Before integrating data across the business, you will have to undertake a good deal of data
analysis. It is wise to start this process at the ultimate destination for that data. For example, if
you wish to use EDI for your purchase orders, the first thing to do is understand the data
requirements of the order processing system.
An important reason to analyze each affected business system is to ensure its ability to share
data. Sometimes, obstacles need to be overcome, such as different business systems may contain
the same data, but in different formats.
Data is often broken down into primary and secondary keys. A primary key is a highly important
but common piece of information – for example, customer PO, invoice number, bill of lading
number – and often requires less attention from the EDI team, as IT departments have learned to
honor these keys. Secondary keys are pieces of information that are likely to be more specific to
an individual business partner or group – such as a department number, carrier code or product
code.
Industry-wide codes – such as the Standard Industry Code (SIC) or Drug Enforcement Agency
(DEA) number in pharmaceuticals – greatly facilitate the use of EDI, as they standardize the use
of these keys across a wide range of organizations and they are often adopted as best practice
across an industry.
Once the structure of the data required throughout the system is understood, the EDI team can
start data mapping.

Step 8: Undertake Data Mapping

Once the data analysis is complete and data structures understood, the ‘map’ is defined to the
EDI translation software. For most EDI software packages or VAN services, the EDI
Coordinator will be able to define the map.
The map defines how the data in the EDI transaction relates to the data in the internal system.
The EDI software stores the map, usually in tabular form. When a transaction enters the system,
the EDI Translator uses the map to determine where each incoming field goes and whether the
data needs to be reformatted.
The major goal within mapping is to avoid the need for custom interfaces as much as possible –
especially custom edits per individual business partner. The more standardized the data formats,
the better the system performance and the less need for specific programming.

Step 9: Establish a Pilot Project

Once an organization has developed and tested its EDI system to the best of its ability, further
system tests are conducted in pilot mode with selected business partners. The EDI pilot is
critical. It enables an organization to refine its own system, show the benefits that can be
achieved and ensure that it can integrate with business partners.
Organizations should set up a pilot project with a small number of business partners. The
organizations with the most EDI experience make the best pilot partners. To be successful, the
pilot must focus on one primary EDI application such as simple purchase orders.
Begin by transmitting documents to the pilot partners, who will confirm that the documents can
be processed accurately. Pilot partners then return data for testing. As each of these tests is
completed successfully, each pilot partner begins to send real orders, which tests the capability of
the system to handle daily business processing.
Paper transactions are not eliminated, however, until both business partners are completely
satisfied that the EDI system is performing well.
Pilot project results must then be analyzed from an internal perspective to answer the following
questions:
 Can the EDI system maintain adequate control?
 Does the system appear to provide the benefits projected in the original EDI study?
 Will the system handle anticipated EDI traffic?
 Are internal users satisfied with the result?

Step 10: Roll out EDI to Business Partners

If you are the initiator of the program with your business partners – for example, you want all
your suppliers to receive your purchase orders via EDI and return EDI invoices – you
must have the skilled resources to develop, manage and maintain an EDI rollout program
to your supplier community.
This includes:
 surveying your community to understand each supplier’s level of EDI readiness
 developing and implementing a community communication plan to convey your program
goals and provide education needed
 offering various EDI options, such as web-based forms or Excel-based options for those
suppliers that are not ready to integrate EDI with their back-end systems
 supporting each supplier through the start-up process
Even after rolling out EDI to your business partners, you need to manage and maintain
your program ongoing. Invest in skilled personnel resources to manage your EDI
program, including:
 monitoring and troubleshooting communication to ensure documents continue to flow
 responding to inquiries from partners 24×7 as issues arise
 reporting on business partner activity and system usage
 making updates to translation maps and/or communication protocols as you or your
partners add new documents, make changes to current documents or upgrade their
communication processes

Challenges in EDI deployment

The common issues are found as challenges in deployment of EDI:
1. Failure to include all business processes. With a data interchange platform in the mix,
some enterprises continue their reliance on legacy applications which should be rendered
obsolete. Additionally, during the platform selection process, decision makers may
choose a system that doesn't address the immediate needs of the organization. These gaps
in utility can add more to employees' plates, managing B2B communication inside and
outside the EDI platform.
2. Inadequate budgetary and management support. Shoring up the support of employees
at every level is critical to successful deployment. Those individuals may lean on legacy
systems, not because of gaps in the framework, but because they're prone to resisting the
new platform. Working with a third-party solutions provider, decision makers should size
up the budgetary costs up front so that point people at every level set reasonable
expectations.
3. Insufficient staff training. Fault lines in your EDI platform may emerge because
employees haven't been properly oriented to how the systems work. Effective training
reduces the time spent on individual tasks and gives your employees dexterity to move
forward with a comprehensive understanding of the system.
4. Errors in data security. Companies with sensitive data to store, send and receive require
EDI solutions built to protect and secure data. Choosing a system with insufficient data
security can leave your organization vulnerable to hackers and other outside parties.
5. Lack of flexibility. Another post-deployment pain point is the failure for EDI systems to
scale, adapt and update alongside the shifting demands of an industry. This is why
maintenance and continuous review are essential.
These issues were found in companies that had already adopted EDI platforms, and many of
them can be addressed before integration occurs. This is why a trusted, experienced service
provider is necessary to ensure successful deployment. Contact Effective Data today to learn
more about our solutions for better B2B communications.

Different Types of EDI

Electronic data interchange (EDI) is one of the most common forms of structured exchange of
business documents between organizations by electronic means. There are many different types
of EDI and a range of approaches to enabling EDI across a trading community. Whether looking
at EDI for the first time or expanding an existing EDI infrastructure to support a variety of
business partners across the globe, there is a method of utilizing EDI that will suit your business
needs, technical capabilities and budget. Many larger companies adopt hybrid EDI solutions to
connect with their business partners, dependent on size, importance and frequency of their
transactions.
 Direct EDI/Point-to-Point: Direct EDI – Enabling Businesses to Exchange EDI
Documents via a Secure, Point-to-Point Connection over the Internet.
Direct EDI, which is sometimes called Point-to-Point EDI, has been used by companies for
years. It was viewed historically as an alternative to a VAN. It establishes a single secure line
between two business partners. In this approach, an organization must communicate with each
business partner individually, which can mean managing hundreds or thousands of separate
connections.
In the direct connection approach, you and your business partner connect directly via the Internet
using the same communication method or protocol. This approach can become very complex and
resource intensive if different business partners are using different communication protocols,
which is the norm in most trading communities. Your system must be able to support all of these
different, required protocols.
This approach is most commonly used by large corporations that have business partners with
whom they exchange a high volume of EDI documents, frequently.
If you choose the direct connection model, you will need to purchase a software package that
enables you to use all the agreed upon protocols, such as AS2, SFTP, FTPS. Then you will need
to agree with each of your partners on (1) which of these communication methods or protocols
you will use and (2) the specific protocol settings to be used when exchanging your files of EDI
documents. You should also consider a software solution that is future proofed to accommodate
future requirements.

 EDI via VAN or EDI Network Services Provider: The vast majority of EDI still occurs
via EDI Networks, which in the days prior to the Internet were referred to as Value-
Added Networks (VANs). The growth of flexible, low-cost approaches, such as Web
EDI or EDI via AS2, has begun to change this situation but the EDI Network is still the
preferred option due to the value- added services that these providers can deliver. Often
companies look to implement a hybrid strategy in which different types of EDI are
implemented as appropriate to the business, but the EDI Network remains the core to
these installations.
The EDI Network is simply a secure network where EDI documents can be exchanged between
business partners. An organization will be provided with a mailbox. Documents are sent and
received from there and the organization checks the mailbox periodically to retrieve its
documents. Most EDI Network Services providers offer an alerting service that informs the
sender when messages have been sent successfully and also notifies the recipient that a new
message is waiting.
In addition to secure communications, EDI Networks deliver:
1. Full mailbox service. Messages are automatically routed to the correct mailbox. Business
partners connect to the EDI Network to retrieve their messages
2. Inspection and authentication of all EDI messages. The EDI Network will verify the
identity of the business partner and validity of the message
3. Full audit trail. All EDI messages are tracked and recorded
4. Message notification. Business partners are notified when message enters their mailbox
5. Ancillary services. EDI Network Service providers offer an extensive range of services
including data backup and recovery, document mapping and compliance

 EDI via AS2: AS2 – One of the Most Popular Methods for Transporting EDI Data
Securely and Reliably over the Internet in a Point-to-Point Manner.
AS2 is one of the most popular methods for transporting data, especially EDI data, securely and
reliably over the Internet. It essentially involves two computers – a client and a server –
connecting in a point-to-point manner via the web. AS2 creates an “envelope” for the EDI data,
allowing it to be sent securely – using digital certificates and encryption – over the Internet.
Wal-Mart has become famous for EDI via AS2 and has helped drive its adoption within the retail
sector.
EDI via AS2 requires the receiving organization’s server to be always “listening out” for
messages addressed to it. Like a call to a phone with no answering machine, the message will be
missed if your server is not available to take the call. So, many organizations decide to use an
EDI network provider to provide AS2 connectivity and thus always be available to receive the
EDI transmissions. Using an EDI network provider for your AS2 needs provides the following
benefits:
1. You can comply with AS2 mandates without incurring the expense of the
AS2 software, hardware, firewalls and expertise you would otherwise need in order to
implement AS2 yourself
2. The provider handles the exchange of AS2 set-up information
3. The provider completes AS2 testing for you and your partners
4. Documents are exchanged in real-time
5. You benefit from the provider’s shared infrastructure, skills and security.

 EDI via FTP/VPN, SFTP, FTPS: FTP over VPN, SFTP and FTPS – Popular
Communication Options for Exchanging EDI Documents Directly or via an EDI Services
Provider.
FTP over VPN, SFTP and FTPS are also among the most commonly-used communication
protocols for the exchange of EDI documents via the Internet. Any of these can be used to
connect to business partners directly (Direct EDI) or to connect to them via an EDI Network
Services Provider.
FTP (File Transfer Protocol) with VPN (Virtual Private Network) – FTP was the first robust,
reliable file transfer protocol developed and is still used by many businesses today, particularly
for file exchange within a company. However, FTP by itself does not provide the security
needed for document exchange with other companies over the Internet. For this reason,
businesses that use FTP use it in conjunction with VPN software, which provides the security
layer needed.
However, neither FTP by itself nor FTP with VPN provides non-repudiation (the ability to
confirm that a document was actually sent by the sender indicated) within the file being
exchanged. Nor does it provide for message management features that provide confirmation to
the sender that documents have been successfully received and decrypted. Moreover,
interoperability may be an issue because there are many different ways of implementing VPN on
your system, as well as possible differences in versions of VPN. Although FTP with VPN does
not address these important B2B factors, you can use it to connect to an EDI Network Services
Provider who then provides the non-repudiation, message management and interoperability
required.
SFTP (Secure File Transfer Protocol) and FTPS (File Transfer Protocol Secure) – Both SFTP
and FTPS are secure Internet protocols. The major difference between the two is in how each
provides security and performs encryption. The security layer used by SFTP was developed by
the Internet Engineering Task Force.
Both protocols encrypt the data while in transit, keeping it safe while moving over the Internet,
and then decrypt it upon arrival at its destination. However, neither provides non-repudiation or
message management. As with FTP with VPN above, interoperability is a major issue and again,
you can use either one to connect to an EDI Network Services Provider who then provides the
non-repudiation, message management and interoperability required.

 Web EDI: Web EDI – Enabling Businesses To Exchange EDI Documents Using Simple
Web Forms.
Web EDI is simply conducting EDI through an Internet browser. It replicates paper-based
documents as a web form. The form will contain fields where users can enter information. Once
all the relevant information is added, it is automatically converted into an EDI message and sent
via secure Internet protocols such as File Transfer Protocol Secure (FTPS), Hyper Text Transport
Protocol Secure (HTTPS) or AS2.
The ease of rolling out a Web EDI solution facilitates the participation of all your business
partners. This can be especially beneficial when working with partners in countries where IT and
EDI skills are limited. Companies are not required to install any EDI software or manage a
complex EDI environment.
In its simplest form, Web EDI enables small- and medium-sized businesses to create, receive,
turn around and manage electronic documents using a browser. Simple pre-populated forms
enable businesses to communicate and comply with their business partners’ requirements using
built-in business rules. Business partners anywhere in the world can connect without dedicating
IT resources to their EDI implementation.
Web EDI is traditionally based around the ‘hub and spoke’ model, in which the major business
partner acts as the hub and the smaller partners as the spokes. In this model:
1. The hub organization implements EDI and develops a web forms option for use by
its small- and medium-size business partners.
2. These web forms may be hosted on the hub’s site or that of an EDI network service
provider.
3. Business partners connect to the web forms via web browser to exchange documents
as forms that are converted to EDI documents behind the scenes for subsequent
processing by the hub.

 Mobile EDI: Mobile EDI – An Emerging Area To Enable The Exchange Of EDI
Documents Via Mobile Devices.
There have been questions about whether a user would want to use a mobile device for
completing a purchase order or invoice while out of the office. However, focusing on supply
chain efficiencies, it is easier to see the benefits of a sales person being able to see the status of a
delivery to a supplier while on the road or a business manager being able to review supplier
performance while in a re-negotiation meeting.
The result is that these types of Mobile EDI applications are beginning to appear. The limitations
of the mobile devices themselves have hampered development. The quality and size of the screen
for most devices has been relatively poor. However, the advent of the iPad and other tablet
computers is altering what can be achieved with mobile computing devices.
It is not an overstatement to say that these devices are changing the way users interact with their
organizations and some companies are starting to launch applications to help ‘mobilize’ their
supply chains. It has now become accepted that there are corporate ‘apps’ and it is only a matter
of time before you can download a supply chain or EDI-related app from a private or corporate
app store.

EDI AND INTERNET:

EDI traditionally has been used by large organizations that can afford to spend huge amount of
money on converters as well as maintaining private point-to-point networks for security and
reliability reasons. This was an unthinkable proposition for the small and medium sized
enterprises. The advent of Internet has brightened the possibility of doing online transactions by
these small and medium enterprises, but with the compromise on security. Ensuring the flow of
EDI data transfer over the Internet in a secure manner is the objective of EDIINT.

EDIINT solution helps to level the playing field for SMEs by providing a solution that allows
these companies to do business with larger organizations and, at the same time, enjoy the cost
savings, speed and other benefits of e-Commerce.

EDI over the Internet (EDIINT) is a working group of the Internet Engineering Task Force
(IETF) that is chartered with creating specifications for transporting EDI or XML documents
over the Internet in a secure (digitally signed and encrypted), highly reliable manner.

Benefits of EDIINT
EDIINT “EDI over the Internet” offers the opportunity for large, medium and small enterprises
to connect and exchange business documents over a secure public network and significantly
reduce communication costs.

The following are some of the benefits

Secure: Addresses the issues of privacy, integrity, authentication and non-repudiation for
B2B e-commerce over the open Internet.
Increased Reliability due to the usage of secure protocols, guaranteed delivery, and
encryption decryption techniques
Low-cost as compared to the VAN based transactions
Highly accessible as connectivity to Internet is no more a luxury
Supports high bandwidth communications
Technically mature as the specifications are being continually refined based on the feedback
from industry usage

EDIINT Standards AS1 and AS2

Applicability Statement 1 (AS1) and Applicability Statement 2 (AS2) are the current
specifications developed by EDIINT for transporting data between organizations via the
Internet.