What is EDI Capable and Why is it Important for your Business

1. 5/20/2020 What Is EDI Capable? Why it is So Important | MapMyEDI Spearheading Strategic Business Efficiency Contact Us +1-423-896-1025 Support FAQ   Home Trading Partners Pricing Features About Us Map My EDI Contact Us 21 APR EDI COMPANY EDI CAPABLE  COMPANY EDI ELECTRONIC DATA INTERFACE CAPABLE  DEFINE EDI CAPABLE  EDI C . . . . EDI FORMAT CAPABILITY  WHAT IS EDI CAPABLE  WHAT IS EDI FORMAT CAPABILITY . What is EDI Capable and Why is it Important for your Busines Today, whenever someone talks about EDI and its advantages to improve your productivity be “what is EDI capable?”. It is followed by related questions such as how to become EDI cap EDI capable? Let’s find out the appropriate answers to these questions. . In simple words, your business is EDI capable means it is competent enough to incorporate main objective of this will be streamlining your business communications with your tra customers, and other stakeholders.  Even though being EDI capable seems pretty simple in the first instance, yet, it involves a la well-established business owners and new entrepreneurs may not have a complete knowledge about EDI capacity requirements and its advantages for business growth is still Home Trading Partners Pricing Features About Us Therefore now let’s study all the important aspects associated with the term EDI capable o https://mapmyedi.com/knowledge-base/edi-capable/ 1/15

2. 5/20/2020 Therefore, now, lets study all the important aspects associated with the term EDI capable o What Is EDI Capable? Why it is So Important | MapMyEDI Contact Us What is electronic data interchange EDI capable? As mentioned earlier, the term EDI capable refers to your business ability in the seamless inc processes. If your business is EDI capable, then, it must be able to exchange crucial bus through a variety of communication protocols.  With EDI, your business should be able to receive and send important business docume instance, Invoices Purchase orders Advanced ship notices Bills of lading Inventory documents Customs documents Shipping documents Home Trading Partners Pricing Features About Us Payment documents https://mapmyedi.com/knowledge-base/edi-capable/ 2/15

3. 5/20/2020 What Is EDI Capable? Why it is So Important | MapMyEDI Payment documents Contact Us The well-built data-formats such as EDIFACT, VDA, EANCOM, ODETTE, HIPAA, GS1, HL7, X12 and these standard data formats is the most significant aspect of EDI since the exchange of do as well as receiver systems are working with similar data-format. The implementation of E any number of business documents can be easily transferred from one corner of the world The Electronic Data Interchange covers all the crucial business aspects including manage many more. And, the ultimate goal of incorporating an EDI system into business models is to Home Trading Partners Pricing Features About Us https://mapmyedi.com/knowledge-base/edi-capable/ 3/15

4. 5/20/2020 What Is EDI Capable? Why it is So Important | MapMyEDI Contact Us What are the benefits of becoming an EDI Capable? The incorporation of the Electronic Data Interchange (EDI) system offers numerous adva streamlines your communication with your trading partners. Since all the EDI document standards, uniformity can be easily observable in the data – presentation. As a result, the require modifying any of the documents as per its specifications. It saves a considerab converting these documents.  Apart from this significant benefit, EDI also offers many advantages in regard to five importa Reduces working capital expenditure:  The incorporation of EDI assists in saving a significant portion of your working expenditure. A done electronically, there is no need for any kind of paperwork. The expenses linked with pri eliminated with it. Also, the costs associated with the service level agreements, payment d timely information flows through the entire supply chain. According to the EDI experts, th bring down the related expenses up to 35% which is remarkable. Fastens the document exchange:  As the EDI automates all the processes of your business, it speeds up all the exch financial/logistic document can be transferred to your trading partner’s system within a co been exchanged through EDI will be accurate, reliable, and free from errors. It not only imp timely actions. On the other hand, in the case of postal service or any other means of slow to exchange the documents. Also, the risks involved with accurate data or data tampering w Minimizes the errors: Through automating the data entry, EDI assists in reducing the occurrence of errors to a gr entry. The available data will be highly accurate, valid, and trustworthy. With it, you will be time. Most importantly, the occurrence of errors due to incorrect data taken on the pho eliminated with automated data entry. As a result, the amount of data disputes reduces gre Improves efficiency: With automation, EDI facilitates the processing and exchanging of business information w errors. So, you will be able to see improvement in your workflow throughout your supply ch right time with real-time tracking can be seen as well. It builds transparency among relationships with them. Enhanced security: As the EDI provides accessibility of business documents to only authorized users, there is a secured communication protocols and tracking/audit trail facilities.  Home Trading Partners Pricing Features About Us https://mapmyedi.com/knowledge-base/edi-capable/ 4/15

5. p What Is EDI Capable? Why it is So Important | MapMyEDI g 5/20/2020 Contact Us How to become EDI Capable?  As mentioned above, the primary goal of EDI is to improve all the vital business processes. and logistics remain at the forefront as most of the documents shared through EDI belong t Home Trading Partners Pricing Features About Us https://mapmyedi.com/knowledge-base/edi-capable/ I i f b i i hl i EDI i h 5/15

6. 5/20/2020 Irrespective of your business size, you can smoothly integrate EDI with your processes to seamless exchange of your crucial business documents with your trading partners throu the implementation of EDI is not an easy task and involves many considerable challenges. What Is EDI Capable? Why it is So Important | MapMyEDI Contact Us Before integrating EDI into your business, you must meet certain terms on B2B transactio from that, you need to take many key aspects such as security mandates and communic seem fairly difficult to work with at first instance. But, they all turn much simpler when you st Now, before we go to define EDI capable framework for your business, let’s try to understand Which is better: In-house or outsource? Today, you can easily adopt EDI and supercharge your business growth. It can be accom integration or develop an EDI capable software (in-house EDI) and execute it yourself.  At present, many firms in the market offer essential assistance for your business in this rega list down all the processes that need to be automated. Based on your business requi integrate it with your processes. Most importantly, they assist in maintaining as well as upda On the other hand, buying EDI capable software from the market is also advantageous in software offers several unique features at reasonable prices. However, you need to overlo not specifically designed to meet your business requirements. Further, you will be restricte the developers. Let’s have a quick look at a few more differences between out-sou Outsource EDI: No need for investing in hardware or software Any kind of alteration in the system can be easily made  Frees up IT department and other supporting staff No need to hire new skilled employees Maintenance and system updation will be managed by the outsourced firm In-house EDI: Need to invest in both, hardware and software Custom-made to fulfill your business needs Demands availability of on-site staff with EDI knowledge Home Trading Partners Pricing Features About Us Hiring of new skilled staff and training of existing staff is essential https://mapmyedi.com/knowledge-base/edi-capable/ 6/15

7. 5/20/2020 What Is EDI Capable? Why it is So Important | MapMyEDI Maintenance and updating of the system should be managed on your own Contact Us Whether you choose an outsourced firm or manage EDI solutions by yourself, just make s scalability as well as flexibility in the future as per your business requirements. How to frame an EDI solution?  An EDI solution simplifies most of your complex business processes and improves your com a strategic planning and tactical approach.  The following list comprises 9 essential steps for designing an EDI solution for your business. 1. List down all the requirements, constraints and areas of improvement 2. Establish a strategy for integrating EDI along with the schedule 3. Choose an advanced EDI solution with hardware/software 4. Take the count of existing inventory of the systems 5. Identify the additionally required systems and resources 6. Select appropriate EDI format capability and integration model 7. Hire or allocate skilled staff for monitoring the EDI system  8. Integrate and execute the strategy 9. Update the solution and train IT/EDI staff regularly  In the above steps, there is a mention of selecting an appropriate EDI format capability. Y Let’s figure it out.  Home Trading Partners Pricing Features About Us https://mapmyedi.com/knowledge-base/edi-capable/ 7/15

8. 5/20/2020 What Is EDI Capable? Why it is So Important | MapMyEDI Contact Us What is EDI format capability? It is the capability of sending and receiving crucial business documents electronically in a the EDI documents must be created as per these standards which state a particular locatio Three major EDI format capabilities are there which are most essential for EDI. They are: 1. EDI format capability 204 2. EDI 850 capability  3. EDI 810 capability EDI format capability 204 – Motor Carrier Load Tender The EDI 204 is mostly used by shippers (for instance, manufactures, wholesalers, distributio to request a shipment. Usually, it will be submitted to a full truckload motor carrier and c cancel a shipment. Besides, it can be also used to replace an existing shipment or to modify A standard EDI 204 communicates all the crucial information related to pickup and delivery Home Trading Partners Pricing Features About Us Description of products https://mapmyedi.com/knowledge-base/edi-capable/ 8/15

9. 5/20/2020 What Is EDI Capable? Why it is So Important | MapMyEDI Description of products  Contact Us Carrier Identification (CID) Pickup/delivery schedule Equipment and other requirements related to a transport truck Delivery/shipping address Contact details of the shipment recipient Name and address of consignees, if applicable Shipping instructions It can be clearly seen that EDI 204 mainly communicates all the necessary information rela shipment requirements, the carrier will become enabled to make the right decision on ship 990 document – Response to a Load Tender, indicating whether he accepted or de acceptance, he will provide the EDI document – Shipment Status Report to inform about the In short, EDI format capability 204 determines your ability to generate EDI 204 docum information to your shipping carrier in an effective manner. EDI 850 capability – Purchase Order The EDI 850 document is used to request a set of goods/services and often incorporates Product descriptions (type, quantity, and price) Payment terms and discounts Billing and shipping information Name and contact details of the carrier Shipping instructions Also, several other EDI documents can be sent along with this EDI 850, for example, EDI 810 – Vendor Invoice (an electronic invoice) EDI 855 – Order Acknowledgement (to conform all the requirements mentioned in Purcha EDI 860 – Order Change Request (to request for updating or modifying the original purch EDI 856 – Advance Ship Notice (to give information on the contents of the shipment or th EDI 997 – Functional Acknowledgement (to confirm the receiving of EDI 850) Home Trading Partners Pricing Features About Us https://mapmyedi.com/knowledge-base/edi-capable/ Y EDI 850 bilit d i bili i ll h i f i i 9/15

10. 5/20/2020 Your EDI 850 capability, determines your ability to organize all the information in segment essential because a purchase order will be sent, received, as well as interpreted by a co human being.  What Is EDI Capable? Why it is So Important | MapMyEDI Contact Us EDI 810 capability – Vendor Invoice This EDI 810 document will be sent as a response to EDI 850 (i.e. Purchase Order) as a paym usually includes Invoice details (Invoice number and issue date) Order information (product types, quantities, and prices) Terms of payment Discounts A few other EDI documents can be sent along with the EDI 810. For instance,  EDI 997 – Functional Acknowledgement (for confirming the receiving of EDI 810) EDI 864 – Text Message (for reporting the presence of any violations within the invoice) EDI 820 – Remittance Advice (for providing detailed information on the invoice payment) Your EDI 810 capability, decides how easily you will be able to streamline the work proces overall output. The automation eliminates all the tasks associated with receiving vendor inv the details into other systems. It not only assists in saving your resources but also reduces th As you already know that an effective EDI can enhance your logistics and supply chain ma trucking is gaining wide recognition these days.  Home Trading Partners Pricing Features About Us https://mapmyedi.com/knowledge-base/edi-capable/ 10/15

11. 5/20/2020 What Is EDI Capable? Why it is So Important | MapMyEDI Contact Us What is EDI Capable trucking? Let’s consider an example before trying to understand the EDI capable trucking definition shipment at the store C through the phone. The dispatcher of carrier B receives the detail system. Let us assume that all this entered information is accurate. The carrier B sends a truck for picking the shipment and delivering it at store C. After picki dispatcher and moves towards store C. In the meantime, an employee from store C calls the firm A  to find out the arrival timing o supply department at the firm A calls the dispatcher, who calls the truck’s driver to get upda After talking to the driver, the dispatcher calls back the firm A and informs about the truck’ at A notifies the employee of the store C. At the scheduled time, the truck arrives at store C signed delivery documents and starts his journey back to carrier B. At the same time, the salesperson of firm A calls the dispatcher to make sure that the p driver, finds out about product delivery and calls back the salesperson. When a driver submits the signed delivery documents at carrier B, the billing clerk genera few days, when the firm A receives the invoice, the employee of the financial department payment check. In between, the billing clerk at carrier B calls the firm A several times un Home Trading Partners Pricing Features About Us https://mapmyedi.com/knowledge-base/edi-capable/ 11/15

12. 5/20/2020 What Is EDI Capable? Why it is So Important | MapMyEDI transaction. Contact Us The entire process appears tedious and time-consuming. But, the integration with EDI can five EDI documents and EDI trucking software. The EDI documents that are used in this process are 1. EDI 204 – Load Tender 2. EDI 990 – Response to Load Tender 3. EDI 214 – Carrier Shipment Status 4. EDI 210 – Carrier Freight Invoice 5. EDI 997 – Acknowledgement Let’s see the above-mentioned situation in the context of EDI. The firm A hires carrier B afte an electronic copy of the order to the carrier B’s trucking software through the EDI 204 – L responds by sending EDI 997 – Acknowledgement, to indicate that the order has been dispatcher, who returns EDI 990 – Response to Load Tender to firm A, indicating that the ord Upon arriving at the firm A, the truck driver picks up the shipment and updates the truckin Immediately, the trucking software forwards an EDI 214 – Carrier Shipment Status to the firm EDI 214 gets automatically updated in the firm A’s database. When the salesperson sees t been picked up already. Throughout his journey to store C, the truck driver keeps updating the trucking software a the meantime, the trucking software continuously generates EDI 214 documents and ke location. When the shipment is delivered at store C, final EDI 214 will be sent to firm A and no After delivery, an employee of carrier B generates EDI 210 – Carrier Freight Invoice and se updates the list of payables and marks this invoice as ready to be paid.  With EDI, the pick-up to paid-time gets reduced to a great extent that can easily be seen in to invest in the EDI capable trucking software.  The EDI capable trucking means you are required to integrate your EDI with trucking softwa documents.  In addition to the EDI capable trucking, another term, EDI direct connect capabilities is also What are EDI direct connect capabilities? Also known as Point-to-point EDI, the EDI direct is used for establishing a single source con be connected with each of your trading partners through a separate communication intensive as it results in multiple connections since different trading partners may prefer Home Trading Partners Pricing Features About Us https://mapmyedi.com/knowledge-base/edi-capable/ 12/15

13. 5/20/2020 What Is EDI Capable? Why it is So Important | MapMyEDI used by firms operating in large-scale and often exchange EDI documents in large volumes Contact Us To achieve EDI direct connect capabilities; your system should be capable of supporting d are required to buy a software package that facilitates multiple communication protoco While choosing the software, you must take your future requirements into account as agreement with each of your trading partners on the usage of any of these protocols as we Wrapping up Today, the integration of EDI into business processes is becoming essential to survive in thi your workflow, improves your efficiency, and boosts your productivity. Thus, make your bu And, leverage this advanced technology to drive your business growth.   Hope this article have provides better information related to EDI Capable. If you have any do   v0 COMMENTS  LIKE SHARE   Wayfair How Target EDI Simplifies Data Processing On The Platform? APRIL 20, 2020 Related Posts 14 MAY 11 MAY 8 MAY Home Trading Partners Pricing Features About Us https://mapmyedi.com/knowledge-base/edi-capable/ 13/15

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