Everything You Ever Need to Know About EDI

The goal of an EDI system is to save time and resources by replacing manual, paper-based documentation methods with automated electronic communication. In an EDI transaction, information moves directly from ‘Business A’s’ system to ’Business B’s’ system automatically. This process limits human interaction in an effort to save on mistakes in transferring critical information. With a Managed EDI system, all the daily data tracking is done within the software, reducing costs, and improving efficiency all with a focus on improved customer experience.

There are three main business benefits to implementing an EDI integration: 

1. Accurate Data Communication - Implementing EDI to communicate with your business partners ensures the data you send and the data you receive is in a consistent and standard format. This eliminates potential lost time, money, and resources from human error. Additionally, it saves both business partners time by automating these communications. 

2. Faster Processing - In addition to ensuring the data you send back and forth is accurate, implementing EDI also cuts down on processing time for your team. The time it takes to process an order from receiving the PO to shipping it out can decrease as much as 50-60% when using EDI. This is because transferring the EDI document is quick and efficient -- there is no time wasted trying to decipher what the request is. 

3. Data Visibility - Using EDI helps your team understand the metrics and data points for your business with extreme clarity. You can see what was ordered, when it was received, and when payment was completed easily without any gray area. This information and knowledge is power in warehousing. It can help you and your team understand where things are working and where things can improve or change. 

EDI allows your business to communicate with other external business partners in a uniform, controlled, and reliable format. This means you will need to convert internal documents to the standardized EDI format. Here is how an EDI exchange between a seller and a buyer might usually work: 

Step 1: Find the internal document from your in-house billing or inventory management system such as a purchase order or an invoice for goods or services. 

Step 2: After you locate the internal document, you will need to convert it from your internal formatting to the standard EDI format for that document type. Each document type has slightly different parameters and requirements. You can convert these documents manually or you can use a data transformation mapping software which is known as a VAN (value-added network) in the EDI World. 

Step 3: After the document(s) are successfully converted to the standard EDI formatting, you can test the document by running it through a conversation software to make sure it is accurate and formatted correctly. If there are any errors, the document will not get passed through to your business partner. 

Step 4: Now you are ready to send the document to your business partner. You do this by either transferring the documents via an SFTP (standard file transfer protocol) or via a secure communication protocol such as AS2, which uses an internet connection. Infoplus exclusively supports AS2 connections. AS2 sends the EDI documents to the EDI VAN using HTTP encryption via an internet connection and you will receive an ACK back from the receiver letting you know they successfully received your EDI transfer. 

Infoplus supports EDI connections and allows users to leverage scripts to customize those EDI calls to fit their needs. Please note that Infoplus leverages AS2 over X12 in a modular fashion to allow maximum flexibility for Infoplus users’ EDI connections. Through Infoplus, users can quickly and seamlessly integrate with AS2 partners (VANs), create connections with trading partners (customers/vendors), and specify what documents are required for each transaction. Infoplus users can customize EDI document mappings or create documents that might not be supported by Infoplus out-of-the-box by using Infoplus scripts. We proudly partner with AS2s including VAN Networks such as: SPS Commerce, Truce Commerce, Mercury Commerce etc

Infoplus is the missing link between setting up an EDI connection and managing that EDI connection. Infoplus offers a state-of-the-art WMS system that is molded around the way your business works. First, your needs are assessed by an experienced team focused on your core business. Next, the correct path forward is developed by industry experts to develop a solution that brings out the best for your business needs. Then, you will receive training so you can continue to support the software without needing to be software experts. The easy-to-read, online Knowledge Base articles are readily available and allow your team to take ownership of your WMS process. This gives them the tools to build a living solution that grows as your company grows.