Internet
EDI
Internet EDI can mean two things in the EDI world;
- Communication of EDI messages via the Internet.
- Using Internet technologies to deliver EDI software
over the Internet.
Communication of EDI messages via the Internet. Internet
EDI is most often considered in contrast to
doing EDI via a VAN (Value Added Network). In this
situation, Internet EDI is simply a communications
pathway, where EDI data is passed between trading partners
using Internet protocols. Internet EDI is done via
a variety of protocols, such as file transfer protocol
(FTP), secure file transfer protocol with SFTP (SSH
File Transfer Protocol) or FTPS (FTP over SSL) and
AS2 (applicability statement 2). When Wal-Mart announced
that they would start doing Internet EDI with all their
trading partners in 2003, this created major difficulties
for the Value Added Networks. Before Wal-Mart went
to Internet EDI, most of their business was based upon
retailers transacting EDI with their trading partners
via VANs. Within a few months’ after the announcement
of Wal-Mart’s change to Internet EDI, revenue
for the major VANs plummeted – in some cases
by several hundred million dollars. Internet EDI was
a major change in an industry that had been virtually
the same for the preceding twenty years.
Using Internet technologies to deliver EDI software over
the Internet: Internet EDI in this context is
really software as a service where the EDI software is
delivered in a hosted multitenant or ASP environment
over the Internet. This means that in contrast to most
EDI software installations, Internet EDI is rented or
leased and delivered over a browser. Internet EDI is
in contrast to the types of software that is installed
on a computer behind a firewall. There are some notable
difficulties with Internet EDI, but most of them are
centered around the difficulty of doing high volume EDI
transactions because of the need for manual entry. In
some cases Internet EDI can be integrated with backend
systems, but most often it is not. Even when Internet
EDI is integrated with accounting or ERP systems, high
volume transactions are difficult (some would say impossible)
to attain. This means that Internet EDI would be most
suitable for very small businesses, before they had significant
business with major companies. Internet EDI where the
software resides on computer servers offsite and is delivered
via a browser has another major issue that should be
considered – the EDI data isn’t
really controlled by you. This is a significant issue
in disputes where the Internet EDI vendor
can withhold your data from you until the dispute is resolved,
effectively crippling your business. Though there are few
examples of Internet EDI vendors having this as a practice,
it may become more prevalent with time.
The term Internet EDI is used to refer to EDI communications
that take place over the internet. Internet EDI
will sometimes also be referred to as AS2 or AS3 EDI;
these terms are simply the technical protocols used by
Internet EDI to connect two trading partners. The
reason Internet EDI is becoming increasingly prevalent
is because the use of Internet EDI can provide significant
cost savings over other more traditional means of EDI
communication, such as modem connections to a VAN. The
use of Internet EDI allows trading partners to communicate
directly, saving monthly fees by bypassing costly Value
Added Networks (often referred to as VANs). Internet
EDI really began to take off when Wal-Mart began to require
that all of its trading partners communicate directly
through Internet EDI.
Selecting a good Internet EDI solution can be quite
a challenge for any business. A small business
should be aware that just because the software it selects
is capable of processing Internet EDI, this does not
necessarily mean that your trading partner will be satisfied
with that particular Internet EDI solution. Internet
EDI solutions are available either through the open source
community or via private software. The best Internet
EDI solutions are required to go through a certification
process to ensure that the Internet EDI communications
are functioning according to accepted standards. This
method of certification of Internet EDI software is often
referred to as Drummond Certification. EMANIO offers
a fully Drummond certified Internet EDI solution that
will work out of the box with our EDI platforms, Trading
Partner® Desktop and Trading Partner® Workgroup.
Internet EDI software, however, does not necessarily
need to be certified. Many retailers will allow Internet
EDI solutions that use unsecure means – such as
FTP connections. Internet EDI solutions that use
unsecure protocols are typically much cheaper and much
more cost effective. EMANIO’s iNetFTP is
just such an Internet EDI solution. The future
of Internet EDI holds a lot of promise. Internet
EDI is being adopted more frequently by more and more
retailers. Many research firms estimate that Internet
EDI will become the dominant EDI exchange method in the
next few years. As you look for an Internet EDI
solution, it is critical to ensure that your Internet
EDI provider is a company that is reputable, stable and
reliable. Internet EDI solutions from EMANIO fit
all these criteria, making your Internet EDI experience
better and more profitable. |
