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Components Of EDI System

An EDI system is made up of all the components that are necessary to exchange EDI transactions with other trading partners. Read More.

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Components Of EDI System

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  1. Blog1: Datatrans-inc.com Components Of EDI System Electronic data interchange is the new way of exchanging information. EDI system assists business entities to exchange information with minimum administration cost and maximum speed. An EDI system is made up of all the components that are necessary to exchange EDI transactions with other trading partners. The chief components of EDI System are EDI software, user interfaces, hardware, EDI guides, a network for communication and experienced EDI personnel. Companies that want to use EDI will have to either purchase the components or outsource the EDI system from third party. EDI software: EDI transactions are very compressed and hard to read and modify. This is the reason why EDI translation software is used to translate the EDI data into a file format which can be used by users. Maps: EDI software assists in the development of maps which are needed to manipulate each transaction. Maps convert the transactions into usable file formats. EDI guides: EDI trading partners give EDI guides which contain guidelines regarding the way in which each transaction will be formatted. Hardware: EDI translation software requires hardware to run it. The EDI hardware must be powerful and reliable enough to assist in the exchange of EDI transaction as per the transmission schedules of the trading partners. Communication network: In order to send and receive EDI transactions a communication network is required. Companies can opt to communicate EDI transactions either by using the direct AS/2 connection to a trading partner or by using a VAN. A VAN is a third party network provider that is used as a communications intermediary with other trading partners. EDI personnel: The most important component is the EDI specialist. It is the job of the EDI specialist to put into operation each of the EDI system components and maintain a specific map for each of company’s trading partners.

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