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| EDI is the process of transfering formated data between computer systems ( usually customer and supplier systems) via a secure third party intermediate | The data files are typically invoices, orders, despatch information, product lists, timetables etc; the standard documents and paperwork of commerce and trade. | |
| . . | ||
| Data transfer is in pre-defined, standardised formats. The Intermediary is usually called a Value Added Network (VAN) and allows different computer systems to 'swap' files. | In this way customers can place orders directly from their systems to the many and varied systems of their suppliers - and vice versa |
The Past
EDI has existed for well over 20 years. Many industries have embraced this basic technology to provide a range of benefits
| * | reduce costs | * | high security | * | process automation/just in time logistics |
| * | speedier transactions | * | automatic confirmations | * | improved working relationships |
| * | full audit trail | * | 24x7 working | * | more accurate data collection |
| * | enhanced image | * | improved cash flow | * | competitive advantage |
However, it should not be forgotten that the history of EDI is also littered with the complaints of smaller suppliers forced in to using the technology due to weight of a 'big customer' - forcing what is called a 'hub and spoke' system on a supply chain.
The Present
Many industries use EDI extensively from retail to manufacturing via distribution and logistics. In addition, finance and banking, and the travel and tourism industries both also use EDI extensively. Through documents such as customs declarations etc. Government and inter-governmental organisations are deeply involved in EDI. Many of these industries have evolved their own standards for transfer, and their own operational rules and regulations. Generally these tend to be agreed by large parts, if not all, of an industry or commercial area working together.
The future
The internet is having and will a big influence of EDI. There is considerable interest and discussion as to how XML (eXtensible Markup Language) will effect traditional (if 20 years can be called traditional) EDI. XML provides a universal file format for representing data, supporting search techniques, a way for describing data structures, and a way of annotating the information.The business-to-business communities using EDI continue to grow and the business documents covered by these electronic trading groups broaden inexorably.
Talk to Broxbourne Solutions about EDI and it's use in your organisation.
Either use our contact sheet Contact Broxbourne Solutions or email jeff.ross@broxbourne-solutions.co.uk
