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This presentation provides a high level introduction to the area of EDI before then giving a brief introduction to each area of the site. The website provides a wealth of resources and downloads including message standards, industry specific EDI standards, communication protocols and the many different ways in which EDI services can be deployed across the extended enterprise. www.edibasics.co.uk – Updated April 2013
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© Copyright 2013, GXS Sponsored bySlide 1
Introduction toEDI Basics
© Copyright 2013, GXS Sponsored bySlide 2
What Exactly is EDI?
© Copyright 2013, GXS Sponsored bySlide 3
What is EDI?
• Electronic Data Interchange (EDI), is the computer-to-computer
exchange of standard business documents in electronic format
between two companies
• EDI operates under two principles, firstly electronic documents replace
paper ones and secondly the exchange of documents takes place in a
standardised format
© Copyright 2013, GXS Sponsored bySlide 4
EDI Replaces Paper-Based Business Documents
PurchaseOrders
InvoicesASN/ DeliveryNotices
Customs Declaration
Forms
© Copyright 2013, GXS Sponsored bySlide 5
Why use EDI?
© Copyright 2013, GXS Sponsored bySlide 6
The EDI Alternative
• The buyer raises a Purchase Order (PO) with EDI software, which can
be automatically transmitted to the seller in near real-time
• The seller’s order entry system receives the PO and an
acknowledgement is transmitted to the buyer with delivery confirmation
• What can take five days with paper takes minutes with EDI
© Copyright 2013, GXS Sponsored bySlide 7
What Does an EDI Message Consist of ?
• Paper-based documents are posted in envelopes and it is possible to
mail many documents in one envelope, EDI is just the same
• A “message envelope” defines the start and end of a document
• “Functional Group envelopes” contain all message envelopes of a
specific type, eg POs, invoices etc
• “Interchange envelopes” enclose all functional group envelopes
© Copyright 2013, GXS Sponsored bySlide 8
What are the Basic Steps for EDI?
© Copyright 2013, GXS Sponsored bySlide 9
So How Much Does EDI Cost to Implement?
• EDI can be provided via
different pricing models,
namely:
– priced by the number of kilo-
characters (KC’s) contained within an
EDI document
– subscription models allow pay-as-you-
go, monthly or annual contracts
– EDI software can be purchased with
ongoing maintenance contracts
© Copyright 2013, GXS Sponsored bySlide 10
What are the Benefits of Using EDI?
© Copyright 2013, GXS Sponsored bySlide 11
Need for Speed
• Sending an electronic message
locally or globally takes seconds
• Information sent by EDI is available
immediately for use within internal
applications
• Faster receipt of documents can
provide a competitive edge in any
business
© Copyright 2013, GXS Sponsored bySlide 12
Need for Accuracy
• Electronic transfer of business
documents
– eliminates the need for copying
data between paper-based
documents
– eliminates errors caused by
manual updates or intervention
– helps to reduce re-work
© Copyright 2013, GXS Sponsored bySlide 13
Competitive Advantages of EDI
• Reduces inventory costs through the
shortening of order processing and
delivery cycles
• Reduces overhead costs through
elimination of manual handling in
areas such as mailroom, sorting and
circulation, clerical documentation
and data entry
© Copyright 2013, GXS Sponsored bySlide 14
What EDI Standards are in Use?
© Copyright 2013, GXS Sponsored bySlide 15
EDI Standards
• EDI standards help to ensure that
electronic business documents can
be exchanged between companies
with ease
• There are many different EDI
standards in use locally and
around the world
© Copyright 2013, GXS Sponsored bySlide 16
EDI Industry Standards
• Different industry sectors have
their own set of standards for
processing electronic documents
• Industry groups such as EDIFICE
(high-tech) and Odette
(automotive) represent their
industry groups but also work
together to share standards
across the automotive and high-
tech sectors
© Copyright 2013, GXS Sponsored bySlide 17
EDI Document Standards
• Companies need to be able to
exchange documents of any type
with customers and suppliers
• Mapping is the process used to
convert business documents to
the required EDI format
• Document mapping requires
skilled staff to generate the maps
© Copyright 2013, GXS Sponsored bySlide 18
EDI Communication Standards
VAN / B2BServices Provider
Companies can use a variety of communication protocols to connect with each other
,OFTP2
© Copyright 2013, GXS Sponsored bySlide 19
What is EDI Outsourcing?
© Copyright 2013, GXS Sponsored bySlide 20
EDI Outsourcing
• Many companies do not have the
internal skills necessary to
implement and manage EDI or B2B
infrastructures
• Outsourcing can offer an easy
route for companies to implement
EDI for the first time
• Companies can streamline internal
and external business processes
with EDI outsourcing
© Copyright 2013, GXS Sponsored bySlide 21
EDI Outsourcing
• EDI outsourcing helps companies
to manage their own internal EDI
infrastructure and also that of their
trading partner community
• Outsourcing can provide global
support capabilities
• It enables companies to focus on
their core competencies rather
than on managing their EDI
infrastructure
© Copyright 2013, GXS Sponsored bySlide 22
Let’s Take a Tour of the EDI Basics Website!
© Copyright 2013, GXS Sponsored bySlide 23
What is EDI?
• What is EDI section provides:
– an introduction to EDI and why
there is a need for companies
to automate manual paper
based documents
– an overview of how business
processes can be simplified
through the introduction of
EDI
© Copyright 2013, GXS Sponsored bySlide 24
Benefits of EDI
• Benefits of EDI section
discusses:
– cost savings that can be
realised
– benefits of increased speed
and accuracy in sending
electronic documents
– improvement in business
efficiency
– how EDI provides a strategic
competitive advantage
© Copyright 2013, GXS Sponsored bySlide 25
Costs of EDI
• Costs of EDI section
discusses the financial
aspects of :
– establishing an in house or
behind the firewall EDI based
solution
– using a third party EDI
provider and the various cost
models used to exchange
business documents
electronically
© Copyright 2013, GXS Sponsored bySlide 26
Things to Consider
• Things to Consider section
discusses :
– the considerations to be taken
when implementing EDI
– what type of transactions
need to be automated?, how
will you connect to external
trading partners? what type of
internal resources will be
required to manage the
implementation?
© Copyright 2013, GXS Sponsored bySlide 27
Types of EDI
• Types of EDI section
discusses:
– the different ways in which EDI
can be enabled across a
trading partner community
– the differences between using
point to point versus internet
based EDI
– whether to use a behind the
firewall software solution or an
outsourced EDI service
© Copyright 2013, GXS Sponsored bySlide 28
Implementing EDI
• Implementing EDI section
discusses:
– the best way to start
implementing an EDI platform
– the ten key steps required to
implement an EDI platform.
This area covers topics such
as undertaking a strategic
review, selecting the right EDI
network provider and on-
boarding trading partners
© Copyright 2013, GXS Sponsored bySlide 29
EDI By Industry
• EDI by Industry section
discusses:
– the many different ways in
which EDI is implemented
across different industries
– the different document or
communications standards in
use today and the importance
of regional industry bodies to
help drive a standardised
approach to implementing EDI
© Copyright 2013, GXS Sponsored bySlide 30
EDI Resources
• EDI Resources section
provides:
– a valuable source of
information relating to EDI and
how it can be deployed within
a company
– ability to download EDI
whitepapers, best practices,
case studies and EDI
standards related information
© Copyright 2013, GXS Sponsored bySlide 31
EDI Resources
• EDI Resources section also
provides:
– more detailed overview of the
various communication and
messaging standards that are
in use today
– useful multi-media archive of
videos, webinars , audio
recordings and even an online
quiz to test your knowledge of
EDI
© Copyright 2013, GXS Sponsored bySlide 32
FAQs
• FAQs section provides
answers on:
– common EDI-related questions
that a visitor to the website
may have
– how new users of EDI can get
up-to-speed quickly with key
concepts and terminology
© Copyright 2013, GXS Sponsored bySlide 33
Glossary
• Glossary section provides a
useful list of the key words
and acronyms used in the EDI
industry today
© Copyright 2013, GXS Sponsored bySlide 34
Contact GXS
• Contact GXS section allows
you to contact GXS directly
• This section also provides a
very brief introduction to GXS
and the industry sectors that
we serve
© Copyright 2013, GXS Sponsored bySlide 35
EDI Basics Mobile Site
© Copyright 2013, GXS Sponsored bySlide 36
AS2 Basics
• AS2 Basics link allows you to
find out more detailed
information about the AS2
communication protocol
• AS2 is an internet based
communications protocol
which is widely used across
the retail sector
© Copyright 2013, GXS Sponsored bySlide 37
Thank You
• UK English
www.edibasics.co.uk
• French
www.edipourtous.fr
• German
www.edileitfaden.de
• Hungarian
www.edibasics.hu
• Dutch
www.edibasics.nl
• Chinese
www.edibasics.cn