Wednesday, October 25, 2006

EDI System Components

An EDI system consists of all of the components necessary to exchange EDI transactions with trading partners who are EDI capable. The major components are EDI translation software, user or system interfaces, hardware, maps, EDI guides, a communication network and EDI experienced personnel. A company that wants to be EDI capable will have to either buy the components or outsource all of the EDI system components to a third party.

EDI transactions are very compact and difficult to read and manipulate. EDI translation software provides the ability to translate EDI data into a file format that can be interfaced with a company’s in-house systems or translated into forms that can be used by users.

EDI translation software supports the development and maintenance of maps. Maps are required to manipulate each transaction type. Every transaction type with every partner will be formatted differently. The map translates the EDI transaction into a useable file format.

EDI guides are provided by EDI trading partners to communicate how each transaction type will be formatted. The EDI guides must be followed exactly in order to be EDI compliant with a particular EDI partner. The EDI guides are used to develop maps. Follow this link to see an example of an EDI guide.

Hardware is required to run EDI translation software. The computer hardware must be sufficiently powerful and reliable to support exchange of EDI transactions 24 X 7 in compliance with trading partners’ transmission schedules.

A communication network is necessary to send and receive EDI transactions. A company can elect to either communicate EDI transactions using a direct AS/2 connection to a trading partner if the trading supports such a connection, or communicate with trading partners using a VAN. A VAN is a third party network provider that is a communications intermediary with other trading partners.

And perhaps most importantly, expertise is required to implement each of the EDI system components and maintain each of the specific maps for all of a company’s EDI trading partners.

10 Comments:

At 10:46 AM, Blogger gxs said...

Great blog. The readers here may also be interested in visiting http://www.edibasics.co.uk which has been set up to explain EDI in a fairly basic form, the steps involved in implementing and some of the areas you may want to consider before doing so.

 
At 10:07 PM, Anonymous Anonymous said...

great blog, i learnt a lot in your post and am creating tutorials on EDI

EDI Tutorial and Edi Consulting

 
At 11:42 AM, Anonymous Anonymous said...

In the Requirements Disignator, you normally see O, M X, but what is 'Z'?

 
At 1:52 PM, Blogger Steve Brewer said...

The Z usually means mutally defined. That is, the two trading partners who are exchanging EDI transactions agree upon what the value of the field designates.

 
At 4:42 PM, Anonymous Anonymous said...

Where do you obtain the template of the X12 standard that you build your EDI Guides from. ANSI appears to sell read only pdf standards not a MS Word standard that could be customized and published in pdf to send to trading partners?

 
At 3:36 AM, Anonymous Anonymous said...

Generally I do not post on blogs, but I would like to say that this post really forced me to do so! really nice post.

 
At 7:49 PM, Anonymous CGLP said...

How to create an EDI system?

 
At 7:47 PM, Anonymous office keygen said...

Great precise info, I've been searching on this topic for a while. Bookmarked and recommended

 
At 7:47 PM, Anonymous office keygen said...

Great precise info, I've been searching on this topic for a while. Bookmarked and recommended

 
At 11:48 AM, Anonymous edi software said...

I would like to hear a discussion about VAN fees vs. AS2 fees. A lot of small companies pay a ton of money on VAN fees by kilo-character.

 

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