EDI Full Form

What is the full form of EDI?

Electronic Data Interchange is what EDI stands for. It involves the electronic transmission of data or documents between sellers and purchasers, including invoices, purchase orders, bills of exchange, shipment notifications, and more.

Additionally, regardless of time zone variations, it enables one entity to communicate digitally with other entities (both national and international).

Business information that was previously transmitted on paper, such as purchase orders and invoices, is now transmitted electronically and is known as electronic data interchange (EDI). To make it simpler for parties to transact such instruments without the need for additional arrangements, technical standards for EDI exist.

History of EDI

EDI, like many other early information technologies, was inspired by military logistics developments. The complexity of the 1948 Berlin airlift necessitated the development of concepts and methods for exchanging vast amounts of data and information about transported goods, sometimes over a 300-baud teletype modem. These early ideas helped shape the first TDCC (Transportation Data Coordinating Committee) standards in the United States.

Some major EDI standard sets include:

• Outside of North America, the only international standard is the UN-recommended UN/EDIFACT.

• In North America, the ANSI ASC X12 (X12) standard is widely used.

• The GS1 EDI set of standards was developed by the GS1 to be prevalent in the global supply chain.

• In the UK retail industry, the TRADACOMS standard developed by the ANA (Article Number Association, now known as GS1 UK) is dominant.

• The ODETTE standard is used in the European automotive industry.

• The VDA standard is widely used in the European automotive industry, particularly in Germany, as is HL7, a semantic interoperability standard for healthcare data.

• HIPAA, or the Health Insurance Portability and Accountability Act, requires millions of healthcare entities that transmit data electronically to use EDI in a standard HIPAA format.

Benefits Of EDI

Following are the benefits of using EDI, as it

• Automate process

• Error free process

• Improve the planning process.

• Increases customer satisfaction

• Cut costs

• Less paperwork

• Smarter stock management

Types Of EDI

• Direct EDI- this establishes a single connection between two people, partners.

• EDI via VAN or EDI Network Services Provider- this is used to provide shields for various complexity of supporting communication protocols.

• EDI via AS2- it is an internet communication protocol.

• EDI via FTP/VPN, SFTP, FTPS- it is used for exchange of EDI documents via internet.

• Web EDI- this conducts EDI using internet browser.

• Mobile EDI- this conduct EDI by using private network.

• EDI Outsourcing- enables companies to use external specialist resources, this helps them manage EDI environment on daily basis.

• EDI Software- company has the correct internal resources to be able to implement the software.