FREQUENTLY ASKED QUESTIONS ON EDI
FREQUENTLY ASKED QUESTIONS ON EDI
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When was EDI introduced?
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EDI was first introduced to supply chains back in the 1960s, when Ed Guilbert developed a form of electronic communication between shipment supply chains in the US army. Although it took until the early 90s for EDI to find wide-spread supply chain integration, EDI was a critical facilitator of early globalisation.
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What is EDI and its types?
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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.
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What is EDI and how it works?
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EDI = Electronic Data Interchange. Definition: Computer to computer exchange of standard business documents such as purchase orders, invoices, inventory levels and shipping notices. EDI software solutions facilitate the exchange of business documents and data across a variety of platforms and programs.
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What is EDI and its benefits?
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EDI, which stands for Electronic Data Exchange, is the secure, automated exchange of electronic documents between trading partners using a standardised format that enables computer systems to communicate with each other.
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What are the application of EDI?
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EDI is used to electronically transfer documents such as purchase orders, invoice, shipping bills, and communicate with one another. A Specified format is set by both the parties to facilitate transmission of information. Traders use Electronic Data Interchange EDI to exchange financial information in electronic form.
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What is an example of EDI?
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A: EDI, also known as electronic data interchange, is exchange of business information in a standard and structured format. An example of EDI is when a buyer sends an order to a supplier, that order is known as an EDI 850.
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Who used EDI?
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Business partners. The exchange of EDI documents is typically between two different companies, referred to as business partners or trading partners. For example, Company A may buy goods from Company B. Company A sends orders to Company B.
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Why was EDI developed?
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In the 1960s, the U.S. transportation industry developed EDI to enable thorough and accurate communications between multiple companies' computer systems. Its objective was to standardize electronic transactions between customers and vendors.
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What are the basic components of EDI?
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The Components of an EDI System are-
1. A device on which to transmit the data.
2. An application or an outsourcing company that translates the data into a standardized EDI format.
3. A connection between the sender and the recipient.
4.Users to send and receive data.
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What are the stages of EDI process?
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The Basic Steps of EDI are-
1. Document Preparation. Information necessary to produce a business document (purchase order, invoice, etc.) is collected in an electronic file.
2. Outbound Translation
3. Outbound Communication.
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What are the issues of EDI?
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The Most Common EDI challenges are-
1. You have a complex B2B Network
2. The volumes of EDI are growing
3. There are errors and missing fields in EDI
4. The cost of EDI is skyrocketing
5. EDI transactions must happen in real-time with more transparency
6. Your partner can't understand the format you're using
7. Security concerns.
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Why EDI is important for business?
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Integrated EDI helps your supply chain become more efficient and productive by connecting order data directly to the accounting or ERP system. This means less time spent on tedious manual tasks, such as calculating invoices manually which can lead to errors that cause problems in other areas of the company.
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What is the future of EDI?
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A likely scenario emerging in the coming years will be message-based cloud systems integrated with both EDI and API capabilities. These will likely be used for system-to-system integration in supply chains, logistics networks and financial operations.
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Which are valid EDI file types?
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Common EDI types include;
1. Direct EDI/Point-to-point.
2. EDI via VAN.
3. EDI via AS2.
4. Web EDI.
5. Mobile EDI.
6. EDI outsourcing.
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What is the role of EDI in e commerce?
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Purpose and Function of EDI
At its most basic, EDI is an exchange of electronic business documents from computer to computer between and within businesses. EDI contains critical transactional information and is structured in a standardized format to allow for easy and automated retrieval.
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Is EDI still used?
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Electronic data interchange technology has been around for decades, and in that time, numerous authorities have declared it's imminent end. But EDI has remained a staple in the B2B communications realm all these years.
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What are EDI standards?
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The EDIFACT standard provides a set of syntax rules to structure, an interactive exchange protocol and provides a set of standard messages which allow multi-country and multi-industry exchange of electronic business documents.
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What are the disadvantages of using EDI?
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The Cons
EDI programs have traditionally been expensive and difficult to implement
There are various compliance standards working toward developing a consistent document format for EDI, but without a consensus there can be problems with cross-compatibility between partner companies.
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What is EDI Architecture?
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EDI architecture provides a framework that enables you to standardize the information which can be easily exchanged between and within business organizations and government entities using electronic channels.
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Is EDI a software?
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Electronic Data Interchange (EDI) software creates a data exchange between two or more computers. This software is typically used for the fast transfer of business documents within companies and between business partners, such as suppliers or customers.
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What is EDI integration?
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What is EDI integration? EDI integration is the electronic communication of business messages, such as orders and invoices, credit notes and ASN's, internally between your own EDI system and your own back office accounts, warehouse or ERP systems, removing the need for manual re-keying of information.
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What is EDI solution?
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EDI is an abbreviation for electronic data interchange.
Using EDI, companies send information digitally from one business system to another, using a standardized format. Some of the types of business systems to which EDI can connect include e-commerce solutions, ERP, WMS, CMS, accounting software and more.
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Why is EDI difficult to implement?
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EDI had always been difficult to implement because users had to deal with two technologies: EDI and the EDI application. EDI, itself, was already quite complex; but the EDI application that supported EDI also added to the complexity.
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What is EDI layered structure?
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EDI has semantic Application Layer, Translation Layer, Packaging and Infrastructure Layer. The EDI semantic layer describes the business palliation that is driving EDI. For a procurements application, this translates into requests for quotes, price quotes, purchase orders, acknowledgement and invoices.
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How many EDI transactions are there?
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There are more than 300 different types of X12 EDI standards, all delegated by a different three-digit number, for numerous industries such as finance, government, health care, insurance, transportation, and others.
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How are EDI files transmitted?
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Using AS2, the EDI documents are transmitted across the internet and the security of the document is achieved by encryption and the use of digital certificates. There are dozens of EDI documents that can be implemented by a company and their trading partners.
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What is EDI trade cycle?
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The e-Commerce Trade Cycle:
A trade cycle is the series of exchanges, between a customer and supplier, that take place when a commercial exchange is executed.
A general trade cycle consists of:
Pre-Sales: Finding a supplier and agreeing the terms.
Execution: Selecting goods and taking delivery.
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What is EDI format capability?
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EDI capability means the very smooth and easy exchange of electronic business documents in an agreed format with your EDI Trading Partners. To become EDI capable there are two options, either running an EDI solution on-premises in an own or 3rd party data center or buy the EDI capability as an EDI cloud service.
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What is EDI testing?
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EDI testing Services and DevOps. Electronic Data Interchange (EDI) is the standard electronic format to exchange documents between business partners. EDI offers major benefits to busiensses by lowering costs, improving speed, accuracy, and business efficiency.
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How do you write an EDI strategy?
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1. Practical steps for developing an Equality, Diversity and Inclusion strategy
2. Take stock of the organisation's starting position in relation to EDI
3. Identify the strategy's objectives
4. Self-education for senior managers
5. Written strategy
6. Training
7. Challenging discrimination
8. Ongoing monitoring.
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How is EDI different from traditional system?
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At a minimum, EDI replaces the mail preparation and handling associated with traditional business communication. However, the real power of EDI is that it standardizes the information communicated in business documents, which makes possible a "paperless" exchange.
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What are the requirements for installing EDI in the enterprise?
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Key Requirements
1. Document Management. A good EDI software should handle even your most complex EDI documents
2. EDI Protocols and Standards
3. EDI Transaction and Community Management
5. 4. EDI Translation and Mapping
6. Integrations and Extensibility
7. Platform Capabilities and Security
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What industries use EDI?
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EDI has been used in the past primarily by automotive and retail businesses, however in the past few years, the format has been more widely adopted. Manufacturing, healthcare, pharmaceutical, utility and construction companies are good examples of EDI clients.
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What is difference between API and EDI?
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While EDI establishes a connection between two EDI systems, API is a web-based protocol that allows different systems to communicate with each other. Using cloud-based technology, API allows for data to flow in less than a second between systems.
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How long does EDI testing take?
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Generally, it takes about one day to a week to complete EDI testing. Of course, that's assuming the process goes well. It is, after all, a test. And you'll do well if you're working with an EDI provider that has the experience you need to manage it.
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What is the difference between EDI and email?
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- (Electronic Data Interchange) The exchange of information between two or more companies with mutual interests over a network. (ii) E-mail system is basically used for sending message electronically to individuals or group of individuals in an inter and intra office environment.
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What is the future of EDI?
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A likely scenario emerging in the coming years will be message-based cloud systems integrated with both EDI and API capabilities. These will likely be used for system-to-system integration in supply chains, logistics networks and financial operations.
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Is EDI a software?
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Electronic Data Interchange (EDI) software creates a data exchange between two or more computers. This software is typically used for the fast transfer of business documents within companies and between business partners, such as suppliers or customers.
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What is the difference between EDI and E Commerce?
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EDI is a means of placing orders, eCommerce is a way of not only accepting orders but providing buyers with a complete shopping experience including a front-end store.
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DR. PRAVEEN KUMAR-9760480884
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