EDI - Electronic Data Interchange

What is EDI?

• EDI is direct computer-to-computer[1] exchange of data normally (or previously) provided on standard business paper documents.
  • Can be implemented within a business, but normally used between companies for the following reasons:
  • Cost savings due to elimination of re-keying, printing, courier costs
  • Speed: communications can be essentially instantaneous
  • Reduction of errors
  • Security
  • Integration with other office automation applications
  • Just-in-time deliveries.
• Use of EDI is now regarded as essential in many large manufacturing companies, and its use will soon extend to smaller companies.

[1] More correctly, of course, we should say "application to application" data transfer

EDI Standards

There have been two proposed EDI standards:

ANSI X.12

developed in the US and widely adopted, although not an international standard[2]. Will eventually (post-1995?) be replaced by:

EDIFACT

(EDI For Administration, Commerce and Transport), originally developed by the U.N. (?) and submitted to ISO for ratification as an international (and hence Australian) standard.

[2] Nevertheless, Stallings & Van Slyke (and others) only describe the US-centric ANSI X.12 standard...:-(

EDI Data Structures

Original diagram from Standards Australia, AS 3801 - 1989

Typical EDIFACT Messages

CREADV

Credit Advice

CREEXT

Extended Credit Advice

CUSDEC

Customs Declaration

DEBADV

Debit Advice

IFTMAN

Arrival Notice

IFTMBC

Booking Confirmation

IFTMBF

Firm Booking

IFTMFR

International Forwarding & Transport Message Framework

INVOIC

Invoice message

ORDERS

Purchase Order

PAYORD

Payment Order

REMADV

Remittance Advice

There are also a larger number of draft and proposed message types awaiting standards approval. It is possible for a group of users to suggest a new message type to meet an unusual business need.

EDI Implementation

1. Use of a commercial EDI provider service, whereby users establish a permanent or dial-in link to the provider who in turn provides a "mail box" where messages are lodged to await delivery to the recipient. The principle disadvantage of this occurs where messages must be relayed to recipients connected to a different EDI service.
2. Use of a commercial electronic mail facility such as the OSI X.400 service offered by Telstra - the advantage of this over option 1. is that X.400 delivery is somewhat more universally available.
3. Delivery using the reliable transport service of the Internet - either using the TCP protocol directly, or indirectly by encapsulating EDI messages into SMTP electronic mail. This is the obvious choice for future EDI users, the only lingering concerns having to do with security.

EDI System Architecture

Application Software

is where the business information is created and used - eg: order entry and accounts payable systems.

Translation Software

is required to convert internal representation of data to and from the standard formats used in EDI. This can usually be supplied by the EDI provider as part of a complete PC-based turnkey package.

• maximum gains from the technology are only attainable when the EDI translation software is fully integrated with corporate databases such that information can flow between applications without human intervention.
• This implies development (or purchase) of EDI translation software on the corporate mainframe = big $$

• How can I be sure that my EDI traffic has reached the right destination in a timely manner?
• How can I believe that the EDI messages I receive genuinely come from my trading partners?
• How can I be sure that my messages have not been corrupted in transit?
• What would the impact on my business if a competitor could read my EDI traffic?
• What would be the impact on my business if my EDI service was interrupted?

There is little inherent security in the Internet. The EDIFACT group has addressed these concerns, and have (apparently) released trial standards for security mechanisms within the EDI specification itself.

Case Studies and the EDI Industry Group

• All of the motor vehicle manufacturers and most of their component suppliers
• A large proportion of government departments, both state and federal and hundreds of others...

• Interpersonal (humanÐhuman) computer messaging, or electronic mail and forms-based email.
• Human to computer messaging. Typical examples of this include one-way email, or automatic computer generation and transmission of FAX messages, called C-Fax by EDICA.