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Learn about Electronic Data Interchange (EDI): what it is, how it works, benefits, drawbacks, and common standards and scenarios.
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EDI Section Outline • What is EDI? • What do we need (to use EDI)? • What do we use EDI for? • Advantages • Disadvantages
What is EDI? • Definition: • EDI is a standardized electronic format, created in the 1960’s, in which to place data that will be exchanged between software applications [1]. • There are 2 basic standards/models that are followed for constructing EDI Documents: • The American National Standards Institute (ANSI) X12 • Electronic Data Interchange For Administration, Commerce, and Transport (EDIFACT)
What is an EDI Document? An EDI document is a plain text file that represents a standard transaction set, such as the 204 v. 3050 (Bill of Lading). We will see that this is not totally true.
What is a Transaction Set? • A specification for an EDI document that says what info goes where and how it should look • The sets were/are developed by ANSI (actually ASC, Accredited standards committee X.12) based on what industry seemed/seems to need • New versions of the transaction sets are frequently released. (Y2K) • As of 1/1994 there were 187 Transaction Sets • In 1995 there were around 250 sets • Today there are around 275 Transaction Sets
Layout of an EDI Transmission Functional Group Envelope
Example Bill of Lading Transaction ST*204*000000001 N/L B2**RDWY***A23516*L*PP N/L N9*CN*3674225455 N/L G62*11*YYMMDD N/L N1*SH*SHIPPER NAME*94*123456789 N/L N3*9999 SHIPPER STREET*ADDITIONAL ADDRESS LINE N/L N4*SHIPPER CITY*ST*00000 N/L N1*SF*SHIP FROM COMPANY NAME N/L N3*9999 SHIP FROM STREET*ADDITIONAL ADDRESS LINE N/L N4*SHIP FROM CITY*ST*00000 N/L N1*PF*BILL TO COMPANY NAME N/L N3*9999 BILL TO STREET*ADDITIONAL ADDRESS LINE N/l N4*BILL TO CITY*ST*00000 N/L N1*CN*CONSIGNEE NAME"93*1234 N/L N3*9999 CONSIGNEE STREET*ADDITIONAL ADDRESS LINE N/L N4*CONSIGNEE CITY*ST*99999 N/L N9"ST*123 N/L G61*DC*DELIVERY CONTACT NAME*TE*(888) 999-9999 N/L … More Here SE*28*000000001 N/L Starting Segment Beginning Segment Bx Segment Terminator Every Line is a Segment Logical Group Why is EDI so unreadable, complicated and filled with worthless buzzwords and terminology that only a select few know and understand? To make money, stupid(and a lot of it). Plus it’s a management thing so that they can sound like they are worth something, “Ivory Tower” syndrome? Data Elements Element Separator Transaction Set Trailer
Standard Data Types • AN - Alphanumeric • 0-9, the characters A-Z and any special characters except: *, > and any characters with a hex value <= 40 • R - Real • A leading + or -, 0-9 and an optional decimal point • Nn - Numeric • the ‘n’ is the number of decimal places • ID - A predefined ASC X12 identifier • DT - Date • Version 3050 or below format is YYMMDD • Version 4010 YYYYMMDD • TM - Time • HHMM in “military” (24-hour clock) time format
What do you need? • A computer • A data source, transaction sets • Translation/Mapping software • Communications software • Communications hardware (modems) • Optionally an EDI VAN (value-added network) • A unique identifier • A trading partner (TPA and TPP 838)
Example EDI Scenario EDI Doc Sender Machine VAN EDI Document EDI Document EDI Doc X- Lator Client Machine X- Lator Raw Data Raw Data DB DB
Acknowledging a Transmission EDI Doc Sender Machine VAN Functional Acknowledgement (997) EDI Document X- Lator Client Machine X- Lator
What do we use EDI for? • Create a hardware-independent standard for exchanging information • Eliminate paper transactions • Eliminate re-entry of data • Speed up business transactions
Subsets of ASC X.12 • AFPA - Paper Industry • CIDX - Chemical Industry • WINS - Warehouse Industry • TDCC - Transportation Industry • VICS - Retail Industry • Grocery Industry
180 - Return Merchandise Authorization and Notification 185 - Royalty Regulatory Report 186 - Laboratory Reporting 188 - Educational Course Inventory 189 - Application for Admission to Educational Institutions 190 - Student Enrollment Verification 191 - Student Loan Pre-Claims and Claims 194 - Grant or Assistance Application 195 - Federal Communications Commission (FCC) License Application 196 - Contractor Cost Data Reporting 197 - Real Estate Title Evidence 198 - Loan Verification Information 199 - Real Estate Settlement Information 200 - Mortgage Credit Report 204 - Motor Carrier Shipment Information 210 - Motor Carrier Freight Details and Invoice 213 - Motor Carrier Shipment Status Inquiry 214 - Transportation Carrier Shipment Status Message 217 - Motor Carrier Loading and Route Guide 218 - Motor Carrier Tariff Information 250 - Purchase Order Shipment Management Document 251 - Pricing Support 260 - Application for Mortgage Insurance Benefits 263 - Residential Mortgage Insurance Application Response 264 - Mortgage Loan Default Status 270 - Health Care Eligibility/Benefit Inquiry 271 - Health Care Eligibility/Benefit Information 272 - Property and Casualty Loss Notification 276 - Health Care Claim Status Request 277 - Health Care Claim Status Notification 290 - Cooperative Advertising Agreements 300 - Reservation (Booking Request) (Ocean) 301 - Confirmation (Ocean) 303 - Booking Cancellation (Ocean) 304 - Shipping Instructions 309 - U.S. Customs Manifest 310 - Freight Receipt and Invoice (Ocean) 311 - Canadian Customs Information 312 - Arrival Notice (Ocean) 313 - Shipment Status Inquiry (Ocean) 315 - Status Details (Ocean) 317 - Delivery/Pickup Order 319 - Terminal Information 100 - Insurance Plan Description 101 - Name and Address List 104 - Air Shipment Information 105 - Business Entity Filings 106 - Motor Carrier Rate Proposal 107 - Request for Motor Carrier Rate Proposal 108 - Response to Motor Carrier Rate Proposal 109 - Vessel Content Details 110 - Air Freight Details and Invoice 112 - Property Damage Report 120 - Vehicle Shipping Order 121 - Vehicle Service 124 - Vehicle Damage 125 - Multilevel Railcar Load Details 126 - Vehicle Application Advice 127 - Vehicle Baying Order 128 - Dealer Information 129 - Vehicle Carrier Rate Update 130 - Student Educational Record (Transcript) 131 - Student Educational Record (Transcript) Acknowledgment 135 - Student Loan Application 138 - Testing Results Request & Report 139 - Student Loan Guarantee Result 140 - Product Registration 141 - Product Service Claim Response 142 - Product Service Claim 143 - Product Service Notification 144 - Student Loan Transfer and Status Verification 146 - Request for Student Educational Record (Transcript) 147 - Response to Request for Student Educational Record (Transcript) 148 - Report of Injury or Illness 149 - Notice of Tax Adjustment or Assessment 151 - Electronic Filing of Tax Return Data Acknowledgment 152 - Statistical Government Information 153 - Unemployment Insurance Tax Claim or Charge Information 154 - Uniform Commercial Code Filing 155 - Business Credit Report 160 - Transportation Automatic Equipment Identification 161 - Train Sheet 163 - Transportation Appointment Schedule Information 170 - Revenue Receipts Statement 175 - Court and Law Enforcement Notice 176 - Court Submission Some Transaction Sets
Advantages • Is a proven method for exchanging information • There are standards in place for most popular business transactions • Saves money and time over paper transactions
Disadvantages • Costly • Muddled in terminology • VANs • Not human readable • Standards are broken even within the document which defines them • No flexibility for different companies in the same vertical market • Version changes are not easily handled