Electronic data interchange: Difference between revisions
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{{Short description|Electronic communication method}} | {{Short description|Electronic communication method}} | ||
'''Electronic data interchange''' ('''EDI''') is the concept of businesses electronically communicating information that was traditionally communicated on paper, such as purchase orders, advance ship notices, and invoices. [[Technical standard]]s for EDI exist to facilitate parties transacting such instruments without having to make special arrangements. | {{Redirect|EDI (software)|The Enlightenment IDE|Enlightenment IDE|other uses|EDI}} | ||
{{Lead rewrite|date=January 2026}} | |||
'''Electronic data interchange''' ('''EDI''') is the concept of businesses electronically communicating information that was traditionally communicated on paper, such as purchase orders, advance ship notices, and invoices. [[Technical standard]]s for EDI exist to facilitate parties transacting such instruments without having to make special arrangements. | |||
EDI has existed at least since the early 1970s, and there are many EDI standards (including [[ASC X12|X12]], EDIFACT, [[OFTP|ODETTE]], etc.), some of which address the needs of specific industries or regions. It also refers specifically to a family of standards. In 1996, the [[National Institute of Standards and Technology]] defined electronic data interchange as "the computer-to-computer interchange of a standardized format for data exchange. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media." It distinguished mere electronic communication or data exchange, specifying that "in EDI, the usual processing of received messages is by computer only. Human intervention in the processing of a received message is typically intended only for error conditions, for quality review, and for special situations. For example, the transmission of binary or textual data is not EDI as defined here unless the data are treated as one or more data elements of an EDI message and are not normally intended for human interpretation as part of online data processing."<ref>{{cite web |title=FIPS PUB 161-2: Electronic Data Interchange (EDI) |publisher=[[National Institute of Standards and Technology]] |date=1996-04-29 |url=http://www.itl.nist.gov/fipspubs/fip161-2.htm |archive-url=https://web.archive.org/web/20080511043940/https://www.itl.nist.gov/fipspubs/fip161-2.htm |archive-date=2008-05-11}} Standard withdrawn: 2008-09-02.</ref> In short, EDI can be defined as the transfer of structured data, by agreed message standards, from one [[Computer System|computer system]] to another without human intervention. | EDI has existed at least since the early 1970s, and there are many EDI standards (including [[ASC X12|X12]], EDIFACT, [[OFTP|ODETTE]], etc.), some of which address the needs of specific industries or regions. It also refers specifically to a family of standards. In 1996, the [[National Institute of Standards and Technology]] defined electronic data interchange as "the computer-to-computer interchange of a standardized format for data exchange. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media." It distinguished mere electronic communication or data exchange, specifying that "in EDI, the usual processing of received messages is by computer only. Human intervention in the processing of a received message is typically intended only for error conditions, for quality review, and for special situations. For example, the transmission of binary or textual data is not EDI as defined here unless the data are treated as one or more data elements of an EDI message and are not normally intended for human interpretation as part of online data processing."<ref>{{cite web |title=FIPS PUB 161-2: Electronic Data Interchange (EDI) |publisher=[[National Institute of Standards and Technology]] |date=1996-04-29 |url=http://www.itl.nist.gov/fipspubs/fip161-2.htm |archive-url=https://web.archive.org/web/20080511043940/https://www.itl.nist.gov/fipspubs/fip161-2.htm |archive-date=2008-05-11}} Standard withdrawn: 2008-09-02.</ref> In short, EDI can be defined as the transfer of structured data, by agreed message standards, from one [[Computer System|computer system]] to another without human intervention. | ||
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EDI provides a technical basis for automated commercial "conversations" between two entities, either internal or external. The term EDI encompasses the entire electronic data interchange process, including the transmission, message flow, document format, and software used to interpret the documents. However, EDI standards describe the rigorous format of [[electronic document]]s, and the EDI standards were designed, initially in the [[automotive industry]], to be independent of communication and software technologies. | EDI provides a technical basis for automated commercial "conversations" between two entities, either internal or external. The term EDI encompasses the entire electronic data interchange process, including the transmission, message flow, document format, and software used to interpret the documents. However, EDI standards describe the rigorous format of [[electronic document]]s, and the EDI standards were designed, initially in the [[automotive industry]], to be independent of communication and software technologies. | ||
EDI documents generally contain the same information that would normally be found in a paper document used for the same organizational function. For example, an EDI 940 ship-from-warehouse order is used by a manufacturer to tell a warehouse to ship a product to a retailer. It typically has a 'ship-to' address, a 'bill-to' address, and a list of product numbers (usually a [[Universal Product Code|UPC]]) and quantities. Another example is the set of messages between sellers and buyers, such as [[request for quotation]] (RFQ), bid in response to RFQ, purchase order, purchase order acknowledgement, shipping notice, receiving advice, invoice, and payment advice. However, EDI is not confined to just business data related to trade but encompasses all fields such as medicine (e.g., patient records and laboratory results), transport (e.g., container and modal information), engineering and construction, etc. In some cases, EDI will be used to create a new business information flow (that was not a paper flow before). This is the case in the Advanced Shipment Notification (ASN) which was designed to inform the receiver of a shipment, the goods to be received and how the goods are packaged. This is further complemented with the shipment's use of the shipping labels containing a GS1-128 barcode referencing the shipment's tracking number.<ref>{{Cite web|url=https://datatrans-inc.com/edi-856-advance-shipping-notice-asn/|title=EDI 856 Advance Shipping Notice (ASN)|access-date=6 November 2019|archive-date=6 November 2019|archive-url=https://web.archive.org/web/20191106214702/https://datatrans-inc.com/edi-856-advance-shipping-notice-asn/|url-status=live}}</ref> | EDI documents generally contain the same information that would normally be found in a paper document used for the same organizational function. For example, an EDI 940 ship-from-warehouse order is used by a manufacturer to tell a warehouse to ship a product to a retailer. It typically has a 'ship-to' address, a 'bill-to' address, and a list of product numbers (usually a [[Universal Product Code|UPC]]) and quantities. Another example is the set of messages between sellers and buyers, such as [[request for quotation]] (RFQ), bid in response to RFQ, [[purchase order]], purchase order acknowledgement, shipping notice, receiving advice, invoice, and payment advice. However, EDI is not confined to just business data related to trade but encompasses all fields such as medicine (e.g., patient records and laboratory results), transport (e.g., container and modal information), engineering and construction, etc. In some cases, EDI will be used to create a new business information flow (that was not a paper flow before). This is the case in the Advanced Shipment Notification (ASN) which was designed to inform the receiver of a shipment, the goods to be received and how the goods are packaged. This is further complemented with the shipment's use of the shipping labels containing a GS1-128 barcode referencing the shipment's tracking number.<ref>{{Cite web|url=https://datatrans-inc.com/edi-856-advance-shipping-notice-asn/|title=EDI 856 Advance Shipping Notice (ASN)|access-date=6 November 2019|archive-date=6 November 2019|archive-url=https://web.archive.org/web/20191106214702/https://datatrans-inc.com/edi-856-advance-shipping-notice-asn/|url-status=live}}</ref> | ||
Some major sets of EDI standards:<ref>{{Cite web|url=https://www.rssbus.com/resources/edi/standards.rst|title=EDI Resource Center: EDI Standards|access-date=2019-02-15|archive-date=2019-02-16|archive-url=https://web.archive.org/web/20190216153133/https://www.rssbus.com/resources/edi/standards.rst|url-status=live}}</ref> | Some major sets of EDI standards:<ref>{{Cite web|url=https://www.rssbus.com/resources/edi/standards.rst|title=EDI Resource Center: EDI Standards|access-date=2019-02-15|archive-date=2019-02-16|archive-url=https://web.archive.org/web/20190216153133/https://www.rssbus.com/resources/edi/standards.rst|url-status=live}}</ref> | ||
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* [[HL7 Services Aware Interoperability Framework|HL7]], a semantic interoperability standard used for healthcare data. | * [[HL7 Services Aware Interoperability Framework|HL7]], a semantic interoperability standard used for healthcare data. | ||
*[[Health Insurance Portability and Accountability Act|HIPAA]], The Health Insurance Portability and Accountability ACT (HIPAA), requires millions of healthcare entities who electronically transmit data to use EDI in a standard HIPAA format. | *[[Health Insurance Portability and Accountability Act|HIPAA]], The Health Insurance Portability and Accountability ACT (HIPAA), requires millions of healthcare entities who electronically transmit data to use EDI in a standard HIPAA format. | ||
*[[IATA Cargo-IMP]], IATA Cargo-IMP stands for International Air Transport Association Cargo Interchange Message Procedures. It is an EDI standard based on EDIFACT created to automate and standardize data exchange between airlines and other parties. | *[[IATA Cargo-IMP]], IATA Cargo-IMP stands for [[International Air Transport Association]] Cargo Interchange Message Procedures. It is an EDI standard based on EDIFACT created to automate and standardize data exchange between airlines and other parties. | ||
*[[NCPDP SCRIPT|NCPDP Script]], SCRIPT is a standard developed and maintained by the National Council for Prescription Drug Programs (NCPDP). The standard defines documents for electronic transmission of medical prescriptions in the United States. | *[[NCPDP SCRIPT|NCPDP Script]], SCRIPT is a standard developed and maintained by the National Council for Prescription Drug Programs (NCPDP). The standard defines documents for electronic transmission of medical prescriptions in the United States. | ||
* The NCPDP Telecommunications standard includes transactions for eligibility verification, claim and service billing, predetermination of benefits, prior authorization, and information reporting, and is used primarily in the United States. | * The NCPDP Telecommunications standard includes transactions for eligibility verification, claim and service billing, predetermination of benefits, prior authorization, and information reporting, and is used primarily in the United States. | ||
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* Modem (asynchronous and synchronous) | * Modem (asynchronous and synchronous) | ||
* [[File | * [[File Transfer Protocol|FTP, SFTP and FTPS]] | ||
* Email | * Email | ||
* [[HTTP]]/[[HTTPS]] | * [[HTTP]]/[[HTTPS]] | ||
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* industry group consortia; | * industry group consortia; | ||
* a large company interacting with its suppliers/vendors; | * a large company interacting with its suppliers/vendors; | ||
*managed services providers. | *[[managed services]] providers. | ||
=== Costs, trade-offs and implementation === | === Costs, trade-offs and implementation === | ||
There are key trade-offs between VANs and Direct EDI,<ref>{{Cite web|url=https://www.rssbus.com/resources/edi/|title=EDI: The Complete Guide and Resource Center|access-date=2018-12-04|archive-date=2018-12-05|archive-url=https://web.archive.org/web/20181205060658/https://www.rssbus.com/resources/edi/|url-status=live}}</ref> and in many instances, organizations exchanging EDI documents can in fact use both in concert, for different aspects of their EDI implementations. For example, in the U.S., the majority of EDI document exchanges use AS2, so a direct EDI setup for AS2 may make sense for a U.S.-based organization. But adding OFTP2 capabilities to communicate with a European partner may be difficult, so a VAN might make sense to handle those specific transactions, while direct EDI is used for the AS2 transactions. | |||
In many ways, a VAN acts as a service provider, simplifying much of the setup for organizations looking to initiate EDI. Due to the fact that many organizations first starting out with EDI often do so to meet a customer or partner requirement and therefore lack in-house EDI expertise, a VAN can be a valuable asset. | In many ways, a VAN acts as a service provider, simplifying much of the setup for organizations looking to initiate EDI. Due to the fact that many organizations first starting out with EDI often do so to meet a customer or partner requirement and therefore lack in-house EDI expertise, a VAN can be a valuable asset. | ||
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* Business Level Acknowledgement – the final indicator shows if the transaction is accepted by the receiver or not. | * Business Level Acknowledgement – the final indicator shows if the transaction is accepted by the receiver or not. | ||
==See also== | == See also == | ||
* {{anl|AS1 (networking)}} | |||
* | * {{anl|AS2}} | ||
{{ | * {{anl|AS3 (networking)}} | ||
* {{anl|AS4}} | |||
* {{anl|Expense and Cost Recovery System (ECRS)}} | |||
* {{anl|Extract, transform, load}} | |||
* {{anl|Legal Electronic Data Exchange Standard}} | |||
* {{anl|Maritime data standards}} | |||
==References== | ==References== | ||