EDI – Basics and Architecture
By Ramana BLV
January 13, 2010
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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
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Need for EDI Print Purchase Order
Re-key Data
Business Application System (SENDER)
Mail / Fax
Request Goods
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Receive Purchase Order
Business Application System (RECEIVER)
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Need for EDI Print Purchase Order
Re-key Data
Business Application System (SENDER)
Mail / Fax
Request Goods
January 13, 2010
Receive Purchase Order
Business Application System (RECEIVER)
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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
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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
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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
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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 o o o o
Rules of syntax Definition of the data organization Editing rules and conventions Published public documentation Mutually defined transmission protocols
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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
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EDI – Architecture Enterprise SEMANTIC LAYER
Trading Partner
STANDARD 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
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EDI Components
(1) Preparation of e-Documents (2) Outbound translation (3) Communication January 13, 2010
(4) Inbound translation (5) Processing of documents 11
EDI Implementation 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 January 13, 2010
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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 January 13, 2010
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X12 and EDIFACT Schemas
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X12 EDI Message Document
UN/EDIFACT Format
ASC X12 Format
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’
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X12 and EDIFACT Schemas Module Transaction set / Document SD
MM
FIN
Control
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Purchase Order Purchase Order Ack. Purchase Order Change Purchase Order Change Ack. Order Status Report Shipment Information (BOL) Receiving Advice Price Sales Catalog Ship Notice/manifest (ASN) Planning Schedule/Material Release Shipping Schedule Report of Test Results Inventory Inquiry/Advice Invoice Freight Invoice Payment order/Remittance Advice (EFT) Functional Acknowledgement Trading Partner Profile
ANSI SET
EDIFACT
850 855 860 865 870 858 861 832 856 830 862 863 846 810 859 820 997 838
ORDERS ORDRSP ORDCHG ORDRSP ORDREP IFTMCS RECADV PRICAT DESADV DELFOR DELJIT QALITY INVRPT INVOIC IFTMCS REMADV CONTRL PARTIN 16
Trading Partner as Sender
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Trading Partner as Sender with Ack
Sender Ack Functional + Technical Receiver Ack Functional
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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
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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
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QUESTIONS?
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