EDI Integration Software And How It Works

What Exactly is EDI (Electronic Data Interchange)?

In simple terms, EDI (Electronic Data Interchange), is a computer-to-computer exchange that facilitates transfer of documents in their electronic format. This is a more improved way of sharing data between business partners. While email remains widely used in transferring information, it is less effective and relies on human input. On the other hand, EDI Integration Software comes with a lot more benefits, including reduced cost, quick exchange of documents, minimal errors, and a better transition and relationships between partners as well as between businesses and their customers.

Remember that business information is so critical since it entails critical transactions. For example, EDI could aid in the process of submitting purchase orders, sending of invoices and exchange of acknowledgement receipts. The other application of EDI is in advanced shipping notice (ASN), which serves to notify the receiver that a delivery is upcoming. Some of the critical information in such a process include purchase order number shipping notice number, and the address of the product to be shipped.

Why Should Organizations Embrace EDI Integration?

In today’s fast-paced world characterized by digitization of business transactions, most organizations are moving towards the use of EDI in both B2B and B2C transactions. Companies that are already utilizing EDI are experiencing the benefits of automation using EDI data integration tools.

How Does EDI Integration Work?

Whereas EDI technology has been around for some time, many organizations are looking for better ways of getting the best from these solutions. The answer lies in the use of EDI integration and modernization, all of which are an extension of the integrated approach. It is recommended that organizations adopt a single, integrated EDI framework that is capable of increasing visibility, improving the delivery of customer service and supporting smooth relationship between partners. Here are steps that are involved:
The sender exports a document such as a purchase order from an in-house system before it is converted into an EDI compliant format through what is commonly known as data transformation mapping software or any of its variant tools.

The document is then run through an EDI processing software so as it is accurate and complies with the EDI standards
The data contained in the EDI document is then transmitted to a Value-added Network (VAN) via secured protocols such as HTTPS, AS2, or SFTP. These communication protocols may come separately or inbuilt in the EDI software.

The last step involves Direct EDI over AS2, in which a secure connection between partners is achieved to enable a real-time transfer of data. The receiving partner reviews the file, checks it for any errors, authenticates, decrypts it before having it in his or her EDI system. The software can also send back the message as an acknowledgment of receipt of the same document. So now that you know what benefits you can reap from EDI Integration Software, why can’t you contact the experts today?