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EDI – Basics and Architecture By Ramana BLV January 13, 2010 1
EDI – Basics and Architecture
By
Ramana BLV
January 13, 2010 1
What is EDI?
Electronic Data Interchange
It’s the Inter-process communication (C2C) of
Business Information in a standardized form for
pertinent Business Transactions
Is the electronic transfer of information between
two trading partner’s systems using a set of
transactions that have been adopted as a national
or international standard for the particular
business function
January 13, 2010 2
Need for EDI
January 13, 2010 3
Request Goods
Business Application
System (SENDER)
Print Purchase
Order
Mail / FaxReceive Purchase
Order
Re-key Data
Business Application
System (RECEIVER)
Need for EDI
January 13, 2010 4
Request Goods
Business Application
System (SENDER)
Print Purchase
Order
Mail / FaxReceive Purchase
Order
Re-key Data
Business Application
System (RECEIVER)
EDI – History & Emergence 1960's - Emergence of standardized data formats for Industry by
Transportation Data Coordinating Committee (TDCC)
1970's - Grocery industry developed Uniform Communication
Standard (UCS).
1979 - TDCC & Credit Research Foundation approved by ANSI
to establish Accredited Standards Committee X12
1987 - EDI for Administration, Commerce and Transport
(UN/EDIFACT) was announced for international trade.
1992 - ASC X12 members approve adoption of UN/EDIFACT as
the single EDI standard
Late 1990’s - XML/EDI development
January 13, 2010 5
Characteristics of EDI?
Provides standardized rigid format
High level of security
Minimizes file size in the exchange
Exchanges large amounts of data with no intervention
Requires dedicated EDI server and software
Machine decipherable (difficult for a person to read)
Focus on data and structure
Not web based … but EDI/XML is gaining foothold
January 13, 2010 6
What are EDI Standards?
ANSI
o Electronic data interchange is the transmission, in a
standard syntax, of unambiguous information of
business or strategic significance between computers
of independent organizations
EDIFACT
o Electronic data interchange is electronic transfer,
from computer to computer, of commercial and
administrative data using an agreed standard to
structure an EDI message.
January 13, 2010 7
EDI Standards
Objective:o To develop an agreed upon structure of communicating data
in ordinary business documents in a machine readable format
o Prescribe the framework for how a specific EDI message is
formatted.
How o Rules of syntax
o Definition of the data organization
o Editing rules and conventions
o Published public documentation
o Mutually defined transmission protocols
January 13, 2010 8
Benefits of EDI
System integration and work automation
Cost savings
Cycle time reduction - Just-in-time support
Reduction in transaction cost
Automated Mailing, Storage, verification and validation
Ease of information exchange (24x7) & Speed
More Secure than paper (Less falsification)
Compliance and Ack. from Trading Partner
Small file size
January 13, 2010 9
Trading
Partner
Enterprise
EDI – Architecture
January 13, 2010 10
SEMANTIC
LAYERSTANDARD
LAYER
STANDARD
LAYER
SEMANTIC
LAYER
NETWORK
Semantic Layer ~ Business Applications (viz., ERP) for exchange of Business Transactions
Standard Layer ~ EDI Standards + Software (Application Interface / Translators)
o Standards, versions, code lists: ANSI ASC X12, UN/EDIFACT, TRADACOMS, ODETTE
o EDI Software: Mapping, Translation, Messaging, Validation, Interpretation, Audit tracking,
Troubleshooting, Security, Encryption, Registration, Send / Receive
Networks ~ Communication Protocols
o Transport:
Point to Point : FTP, Telnet, ENX
Electronic mail: X435, MIME
World Wide Web (AS2): HTTP
Via Internet: SFTP, HTTPS, AS2
o Physical: Dial up lines, Internet, I-way
EDI Components
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(1) Preparation of e-Documents
(2) Outbound translation
(3) Communication
(4) Inbound translation
(5) Processing of documents
EDI Implementation
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Analysis of appropriate EDI Solution
o Messages and Standards
Trading partner consent
Implementation guidelines from Trading partner
o Focus on conformity with other party
o Build special functions and custom development on your side
Build Capabilities to implement EDI
o EDI Software, Hardware, Network
Canonical models / Translators
Capacity planning , high-availability, Security requirements
o Project team
Development and Testing
Training of end-users
EDI Software Chief function: Imports & Export of data and communication
Best Practice: KIS, one IMPEX per information flow
Best PICK
Message center function: Manage and monitor communication flows from
and to your applications. Translation and notification of errors
Security & Communication protocols for data exchange with trading
partners
Translation of EDI formats to easier-to-use formats.
Handling of different
EDI Standard Formats (viz., EDIFACT and XML) and versions
Usage/interpretation of EDI standards by trading partners.
Conversion of EDI data and codes.
Ability to process large messages, Adapter conforming to App. System
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X12 and EDIFACT Schemas
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X12 EDI Message Document
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EDI FORMAT OUTPUT EXAMPLE
ISA+00+ +00+ +01+808239214 +01+RECEIVERID +990325+1634+U+00401+000000001+0+T+▼’ GS+PO+808239214+RECEIVERID+19990325+1634+1+X+004010D850_0’
ST+850+0001’ BEG+00+SA+PO12345++19990325’
PER+IC+THOMAS [email protected]’
DTM+002+19990415’ N1+ST+KEESLER AIR FORCE BASE’
N3+1401 FISHER STREET, LOADING DOCK 22B’ N4+KEESLER AIR FORCE BASE+MS+39534+US’
PO1+0001+25+EA+150++SN+01WGT234+MF+WGTA0123’
PID+F++++STANDARD MILITARY ISSUE WIDGET’ FOB+PP+AR+KAFB’
TD5+++++SHIP VIA COMMON CARRIER’ CTT+1’
AMT+1+3750’ SE+14+0001’
GE+1+1’
IEA+1+000000001’
UNA:+.?’
UNB+UNOA:4+808239214+RECEIVERID+990325:1634+0000000001’ UNG+ORDERS+808239214+RECEIVERID+990325:1634+00001+UN+D:97B’
UNH+0001+ORDERS:D:97B:UN’ BGM+105+PO12345+9’
DTM+10:19990415:102’
NAD+ST+01234567890001:164++KEESLER AIR FORCE BASE+1401 FISHER STREET, LOADING DOCKNU:MBER 22B+KEESLER AIR FORCE BASE+MS+395341401+US’
CTA+IC::THOMAS JONES’ COM+3045551212:TE’
[email protected]:EM’ LIN+0001++ITEMNO123:AY’
PIA+1+01WGT234:SN+WGTA0123:MF’
IMD+F++::::STANDARD MILITARY ISSUE WIDGET’ QTY+21:25:EA’
MOA+146:150’ UNS+S’
MOA+128:3750’
CNT+2:1’ UNT+16+0001’
UNE+1+00001’ UNZ+1+0000000001’
AS
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12
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X12 and EDIFACT Schemas
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Module Transaction set / Document ANSI SET EDIFACT
SD Purchase Order 850 ORDERS
Purchase Order Ack. 855 ORDRSP
Purchase Order Change 860 ORDCHG
Purchase Order Change Ack. 865 ORDRSP
Order Status Report 870 ORDREP
Shipment Information (BOL) 858 IFTMCS
Receiving Advice 861 RECADV
Price Sales Catalog 832 PRICAT
Ship Notice/manifest (ASN) 856 DESADV
MM Planning Schedule/Material Release 830 DELFOR
Shipping Schedule 862 DELJIT
Report of Test Results 863 QALITY
Inventory Inquiry/Advice 846 INVRPT
FIN Invoice 810 INVOIC
Freight Invoice 859 IFTMCS
Payment order/Remittance Advice (EFT) 820 REMADV
Control Functional Acknowledgement 997 CONTRL
Trading Partner Profile 838 PARTIN
Trading Partner as Sender
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Trading Partner as Sender with Ack
January 13, 2010 18
Sender Ack Functional + Technical
Receiver Ack Functional
XML/EDI Standards XML - Extensible Markup Language
Set of rules for encoding documents electronically
Data can be represented in arbitrary data structures
Emphasize simplicity, generality, and usability over the Internet.
Data is represented in textual data format,
Adopts open standards with strong support for Unicode
Syntax can be built for formatting objects, digital sig. and encryption
Can be referenced to a DTD (Document type Definition) for validation
XML/EDI
Attempt by World-Wide Web Consortium (W3C) to combine the best features of
traditional EDI with imp. in technology offered by XML
XML eStandards - CIDX (ChemXML), PIDX (XML), RAPID
Gaining faster adaptation. Less operational Costs.
Market places (hub and spoke) – flexible pricing & support
OASIS UBL (Advancing Open Standards for the Information Society)
Royalty-free library of standard electronic XML business documents
UBL Library consists of ebXML developed by UN/CEFACT and OASIS
January 13, 2010 19
Barriers for Adopting EDI Difficulty in cost/benefit evaluation
Need for two info. systems (App. systems and EDI Software)
External Impact
o Trading partners – Standards, Business sanction
o Continual development of EDI Standards & versions
Significant initial development and training costs
Emergence of Industry Marketplaces (hub and spoke)
Business Process change – Invoices received by EDI before
physical goods
Resistance to change
Full implementation or “Rip & Read”
January 13, 2010 20
QUESTIONS?
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