EDI - what is it?
How to decipher the abbreviation EDI? It is an electronic data exchange that guarantees a permanent connection between the customer, the supplier, the carrier, the logistics operator and the bank. EDI allows immediate and convenient retrieval of data from customer databases that are needed for various types of transactions between two entities. It is a combination of the capabilities of large databases, IT processes and modern telecommunications solutions. Data exchange and retrieval is based on a fixed and standardized format that works on all computers. Regardless of the choice of system operator and data exchange software, it works similarly. The software is designed to give access to huge databases, to analyze them or to confirm any of the conclusions. Electronic Data Interchange or EDI not only gets rid of unnecessary paperwork, but also saves time for shipping companies and their customers. Current standards are used worldwide and all users share the same database environment.
Electronic data interchange - how does it work?
How does electronic data interchange work in practice? All transactions and messages in EDI are defined by the same standards. There are two basic types of transmission:
point-to-point connection - you will also find this under the name direct connection and it connects two computers or systems without the need for an intermediary. All you need is an Internet connection with a secure protocol.
VAN - translated into Polish, this is a value-added network. The data transmission is managed by an external company. Most often through a mailbox paradigm.
Among the protocols, you can use solutions like SFTP, AS 2 standard based on HTTPS and SOAP.
What else is worth knowing about EDI? EDI data includes a variety of elements - it can be, for example, the identifier of the sender and the recipient. The structure of the different types of data is defined by envelopes containing the necessary information about the addressee or recipient. The meta-languages XML and JavaScript Object Notation complete the EDI standard. Support for many types of documents can even break down into 55 different types of formats developed by more than 200 partners worldwide. The origins of the system date back to 1979, when the American Standards Institute established a special unit, the Accredited Standards Committee X12, which consisted of representatives from the government, the transportation industry, and the largest IT companies at the time.
What is an operator responsible for in an EDI system?
It is an entity that provides data transmission services in the EDI system. The EDI operator is also responsible for processing the received data between the supplier and the recipient and sending them to the right place. The EDI operator sends messages and releases the addressee and the buyer from this obligation. Currently, there are several operators on the Polish market: Comarch, Edison, Itella Information, Xtrade, and Infinite.