ELECTRONIC DATA INTERCHANGE

Rahul kundu

6th sem, IT

contents

Introduction of EDI

Features of EDI

Working of EDI

Benefits of EDI

Introduction of EDI

• Electronic Data Interchange (EDI) is a set of standards for structuring information that is to be electronically exchanged between & within businesses, organizations, government entities & other groups, without human involvement.

• A way to exchange transcripts (and other important data) without paper.

• The National Institute of Standards and Technology in a 1996 publication defines Electronic Data Interchange as "the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments.

• EDI can be transmitted using any methodology agreed to by the sender and recipient. This includes a variety of technologies, including modem (asynchronous, and bisynchronous), FTP, Email, HTTP, AS1, AS2, etc

Features of EDI

• Exchange of structured business information in standard formats between computers.

• It has reduced data entry link, eliminates the need for a paper bases system and improved business cycle.

• EDI transfer structured business documents internally among groups of departments or externally with its suppliers, customers and subsidiaries.

• In EDI, information transferred over a network will not have to read, retyped or printed but must have predefine structure agreed between the two company's which send and receive data.

• The two companies or groups which exchanged information through EDI are called the Trading Partners.

Working of EDI

1. Exchange of data with several trading partners directly in a standard format.

2. EDI just seeks to take a form from a business application, translates that data into a standard electronic format & transmit it.

3. At the receiving end, the standard format is untranslated into a format that can be read by the recipient’s application.

Working of EDI cont…

Manufacture

Manufacture

Manufacture

Manufacture

Supplier

Supplier

Supplier

Supplier

Supplier

Supplier

Third Party

Vendor

One to Many

One to Many

Benefits of EDI• Speed:- data can move directly form one

computer to another with little to no delay.

• Accuracy:- errors are reduced because data is not being re-keyed

• Simplicity:- EDI standard specify how data will be formatted & where it can found.

• Security:- EDI can be accessed only by authorized users & is accompanied by audit trails & archiving of data.

• Faster buy-sell cycle time

• Reduced order lead time & inventories

• Ability to conduct just in time manufacturing

• Improved trading partner relationship

• Reduced labour costs

• Faster document processing

• Reduced paper based system.

Components of EDI

There are 3 types of component:-

1. Application service

2. Translation service

3. Communication service

Components of EDI cont…

Business Application

Trading Partner

Application Service

Transmission Service

Communication Service

EDI services

1. Application Services :-

It provides the link between application and EDI. It allows you to send documents from an EDI system. The set of callable routine is used to transfer document from the business application into EDI document destination can be either intra-company or to the external companies .

EDI services

2. Translation service:-

Converts the out going documents from an internal format file to an agreed external format.

Translates internal document from external format to EDI internal format file.

EDI Services cont…

3. Communication service:-

The communication service sends and receives transmission files to and from the trading partners either directly or by using party service called a valued added network(VAN).

Thank you