Electronic Data Interchange (EDI)Introduction to EDI…History of EDISlide 4Advantages of EDIDisadvantagesSlide 7Original ModelValue-Added Network (VAN)VAN ModelWeb ServicesOptionsExample of XMLDirect RoutingWho Needs EDI or a VAN?ANSI X12 StandardExample of ASC X12ASC X12 StandardASC X12UCS History and BackgroundUCS Development (3 phases)UCS Implementation GuidelinesUCS Communication StandardUCS Internet StandardsUCS Example (Kroger, Co.)Item Maintenance (Kroger, Co.)EDIFACTSlide 28Example of EDIFACTThings you may want to remember . . . (for the test)Sources of InformationElectronic Data Interchange(EDI)Rebecca FoutsLaura FryeLaura GrayMatt MullerAriana PelayoIntroduction to EDI…•What is EDI?–Electronic Data Interchange is the computer-to-computer exchange of business data and documents between companies using standard formats recognized both nationally and internationally. – The information used in EDI is organized according to a specified format set by both companies participating in the data exchange. http://www.x12.org/x12org/about/faqs.cfm#a1History of EDI•The general idea behind EDI was originated by a group of railroad companies in the mid-1960’s, in the United States. •Much of the early work on EDI was driven by the industry sectors for: –transportation–pharmaceuticals –groceries–automobiles–banking www.edi-guide.com/edi-history.htmHistory of EDI•It was not until the 1970’s, when work began for national EDI standards. •Both client and vendors input their requirements to create a set of standard data formats that –were hardware independent; –were unambiguous and could be used by all trading partners; –reduced labor-intensive tasks such as data-entry; –allowed the sender of data to control the exchange including receipt confirmation of by the other party www.gotedi.com/term_history.htmAdvantages of EDI•Lower operating costs–Saves time and money•Less Errors = More Accuracy–No data entry, so less human error•Increased Productivity–More efficient personnel and faster throughput•Faster trading cycle–Streamlined processes for improved trading relationshipshttp://www.edi-guide.com/edi-benefits.htmDisadvantages•High Dependence on the participation of trading partners•Costly for smaller companies•Difficult to agree on standard to be usedhttp://www.edi-guide.com/risks-of-edi.htmRetailer ARetailer CRetailer BRetailer DWholesaler AWholesaler BWholesaler CWholesaler DRetailer ARetailer CRetailer BRetailer DWholesaler AWholesaler BWholesaler CWholesaler DOriginal ModelValue-Added Network (VAN)•communications networks supplied and managed by third-party companies that facilitate electronic data interchange, Web services and transaction delivery by providing extra networking servicesRetailer ARetailer CRetailer BRetailer DWholesaler AWholesaler BWholesaler CWholesaler DValue-added NetworkVAN ModelWeb Services•Applications that use a universal language to send data and instructions to one another, with no translation required•Uses the Internet, so most of the connection problems are eliminatedhttp://www.computerworld.com/softwaretopics/software/appdev/story/0,10801,64099,00.htmlOptions•EMAIL•XML•DIRECT ROUTING<?xml version=”1.0” standalone=”yes”?><NewDataSet> <Order> <Customer><Name>Company Name</Name> <Address>Address, City, State, Zip</Address> <Customer Number>101</Customer Number></Customer> <Items> <Item><Product Number> 25</Product Number> <Qty>25</Qty></Item> <Item><Product Number> 30</Product Number> <Qty>15</Qty></Item> </Items> </Order></NewDataSet>http://aspalliance.com/487Example of XMLRetailer ARetailer CRetailer BRetailer DWholesaler AWholesaler BWholesaler CWholesaler DDirect RoutingWho Needs EDI or a VAN?Companies still need… •Assistance with formatting problems•Authentication of customersEDI Standards…ANSI X12 Standard•Accredited Standards Committee (ASC) X12 was created in 1979 by the American National Standards Institute. •It is a not-for-profit membership. –Members meet three times each year to develop, maintain and build on the EDI standards.•Its purpose:–To standardize the EDI formatting and exchanges between companies in order to make the transfers less time consuming, due to differences in formatting and information presentation. http://www.x12.orgExample of ASC X12Note: Linefeeds and "(Continued)" notes inserted for clarity ISA*00* *00* *01*123454321 *01(Continued) *012341234 *031016*2359*U*00401*987600111*0*P*: \GS*RA*123454321*012341234*031016*2359*987600111*X*004010 \ST*820*987600111 \BPR*C*77.77*C*ACH*CTX*01*234056789*DA*0099109999*(Continued) *123454321*01*045678099*DA*1008973899*031016 \TRN*1*0310162359 \REF*AA*EDI6 \N1*PR*WHIZCO OF AMERICA INC \N3*55 MEGAPLEASANT ROAD*SUITE 999 \N4*SUPERVILLE*NY*10954 \N1*PE*YOWZACO \ENT*1 \RMR*AP*1111111111111111*PO*11.11 \RMR*AP*2222222222222222*PO*22.22 \RMR*AP*4444444444444444*PO*44.44 \DTM*055*031016 \SE*000000014*987600111 \GE*1*987600111 \IEA*1*987600111\ http://www.x12.orgASC X12 Standard•These standards have been updated 5 times since their creation in 1979, –They are updated to include new facets in the business world, or update any information that has become obsolete.• As the standards evolved, subcommittees were added to ASC X12.–In 1986 X12F was added for the Financial Industry–In 1989 X12M was added for the Warehousing sets–In 1991 X12N was formed for the B2B Insurance and Healthcare needs.http://www.x12.orgASC X12•ASC X12 is looking to integrate with XML.–1999 the first summit was held to draft policies and procedures to create XML in ASC–2002 the second summit was held to further develop ASC/XML bonds. (www.disa.org)•Currently there are more than 300 X12 transaction sets in XML format for B2B transactions. –They are used in the insurance, franchises, automotive, finance, communication, and merchandising industries.http://cleo.com/university/tech-terms/EDI_X12.aspUCS History and Background •UCS = Uniform Commercial Standard•Subset of ANSI ASC X12 •Foundation for creation from the Transportation industry•Grocery and Retail-oriented Industry – 1976•Sponsorship and Funding–Manufacturers–Retailers–Wholesalers–Brokershttp://www.uc-council.org/ean_ucc_system/stnds_and_tech/ucs.htmlUCS Development (3 phases)•1st – Feasibility Study (Spring 1980)•2nd – Development of message and communication standards (August 1980)•3rd