EDI Translation

EDI translation is the primary function of EDI translation software. When a computer sends an EDI message to another computer (this is standardized business information in a machine readable format), the EDI translation software is responsible for pulling the data that will be sent from the backend business system and transforming it into EDI. Then the EDI translation software sends the EDI message over a network to the trading partner.

Once the EDI message is received by the EDI translation software at the trading partner, a process of EDI translation happens in reverse; the EDI message is converted into the format of the backend system at the receiving party and the data is inserted into their backend system.

EDI translation was developed in response to the need for Just-In-Time manufacturing in the automotive industry. The Japanese auto industry was rising and US manufacturers in Detroit saw the need for a technological solution that could enhance their supply chain and manufacturing operations. EDI translation was the answer – sending manufacturing and shipment information over a network between the different parties in the value chain. EDI translation spread to other industries, especially retail, and EDI translation is today a common part of doing business with large companies.

One of the reasons EDI translation has become so prevalent is that the cost savings and efficiency improvements resulting from effective use of EDI translation technologies are self-evident. It is commonly accepted that the business data residing in one computer becomes the data input in another computer. To utilize EDI translation to remove redundant data entry, the associated errors and costs makes this a no-brainer. In addition, when the data is instantaneously communicated through the EDI translator to trading partners, it makes for a more efficient value chain.

EDI translation is one of the primary reasons for the increased efficiency in international trade. Without EDI translation, it would still take significant time, and be as error-prone as it was 30 years ago. However, thanks to EDI translation, business communication is virtually instantaneous and has significantly less errors than before.

One of the challenges with EDI translation is that it has been a batch process. In today’s world EDI translation has to become zero-latency oriented. To attain this in EDI translation, new technological solutions are necessary. Where EDI translation goes from where it is today is speculative, but one of the directions that many have spoken of, is that EDI translation starts to utilize XML technologies.

EDI Translation can be accomplished in a number of ways. EDI Translation is widely available through EDI Translation service bureaus. EDI Translation software companies provide software that can be installed on a PC or on a server and that is supported by a number of different operating systems. EDI Translation software can provide a rudimentary framework for EDI Translation based on the EDI X12 standards; at a more sophisticated level, it can provide a plug-in architecture for EDI Translation that allows the user to add EDI Translation capabilities as needed. With so many options available, it is not easy to decide on the right EDI Translation solution for your small business.

In addition, with the increased adoption of EDI Translation software and EDI Translation services by both large and small companies, ERP vendors have begun to offer some form of EDI Translation options with their systems.  These EDI Translation add-ons, however, are usually very limited in scope and offer EDI Translation services only for a select number of trading partners or in very limited ways.  A better option for most small businesses is to have EDI Translation software tied to their in-house back end system through some form of EDI Integration.  Using Integration, the EDI message is processed by the EDI Translation software and is then mapped into the in-house ERP system.  This form of 100% electronic transfer of data was the ultimate goal of EDI Translation when it was first envisioned.