EDI Electronic

EDI Electronic is known formally as “Electronic Data Interchange”, although the acronym EDI is used more frequently than the long version of the term. When someone references EDI electronic, they are referring to the electronic method of transmitting data between non-human parties (aka one computer system to another). Frequently people mistake EDI electronic communication to be simple e-mail, but in fact it is a much more detailed transmission, one that actually took place before the emergence of the Internet as a means of communication and trade. Even though the world is becoming more entrenched with more sophisticated and streamlined technology, most commerce-based exchanges still take place in an EDI electronic platform.

EDI Electronic Standards

Standards for EDI electronic communication began to emerge in the mid 1980s but are updated annually.  EDI electronic standards include format, characters, data elements used in the transmissions, outline required information vs. optional information, and lay out rules for documentation structure. The EDI electronic standards usually focus on text-coded single messages versus the detailed history of internal/external business communications. EDI electronic communication can take place via a wide range of technology, some of which include modem, FTP, e-mail, HTTP, and others. Because of ever changing advances in the technological forefront, standards are also emerging for EDI electronic communication that takes place over the Internet (i.e. for e-mail, MIM-based HTTP, FTP, etc.)

EDI Electronic Documents

EDI electronic communication defines the parties involved in exchanges “trading partners”; the standards dictate that these trading partners determine what information will be transferred and how the received information will be utilized. These agreements for implementation of EDI electronic data are referred to as “Message Implementation Guidelines” and are created in readable formats (not in computer code). It is common for EDI electronic guidelines to be broad and generic, allowing for usage among inter-company department or branches.

EDI Electronic Information

The information that would be printed in hard copy format (i.e. paper) is basically the same information that is found in an EDI electronic document. One of the benefits of EDI electronic communication is that more information than just business can be include in an EDI electronic document, such as medicine, transport, engineering, construction, etc.

Transmission of EDI Electronic Documents

The parties involved in the transmission of EDI electronic documents can choose which transmission method will be used - a common method is through Value Added Networks (VAN). The VAN acts as a clearinghouse during the transfer of EDI electronic documents- receiving communications, analyzing the sender and receiver, and ultimately passing the EDI electronic transmission on to its intended destination. However, these are just the basic services a VAN will provide, and most VANs provide a great deal more, and can customizable security features depending on the sensitivity of information being transmitted (i.e. in healthcare EDI electronic communications).

Why Communicate Via EDI Electronic Means?

The flow of information within any company requires an excessive amount of paperwork- documentation of every fax, meeting, memo, brief, etc. can become an expensive and time consuming process. EDI electronic communication is a way for an organization to eliminate a significant portion of this documentation excess. In addition, EDI electronic documentation allows an organization to store a large amount of data in an electronic format without having to waste manpower keying in the documentations manually, and reduces human error. Most importantly, the speed in which EDI electronic communication can take place is a huge benefit to time sensitive operations.

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