What is EDI?

Electronic Data Interchange (EDI) is the computer-to-computer exchange of inter- company business documents using a standard, public data format. Instead of relying on the telex, fax machine or mail to exchange documents, EDI users exchange them directly between computers.

AIMS® offers a complete product line of integrated EDI products to compliment your AIMS® order processing system including 850 Purchase Order, 810 Invoice, 856 Advance Ship Notice (ASN), 832 UPC Catalog, and other transactions.

What is a trading partner?

Companies that exchange business documents using EDI, are called trading partners. The major retailers you do business with, such as JC Penny, Sears, (there are many others) are your trading partners.

What kind of documents do trading partners exchange?

There are dozens of types of documents exchanged between trading partners. Some of the most common EDI documents that will probably be required by your company are 850 purchase orders, 856 advance shipping notices, 810 invoices, and 832 UPC numbers (UPC Catalog).

What is an EDI transaction?

An EDI transaction is just another name for a business document. Each type of business document in the EDI public format has been assigned a transaction number. For example, the EDI transaction number for a purchase order is 850. The EDI transaction number of an invoice is 810. There are many other types of transactions, and each has been assigned a unique number.

What is an EDI mailbox and why do I need one?

EDI transactions are sent computer-to-computer using a telephone and a modem (a modem is what computers use to communicate with other computers). The reason you need an EDI mailbox is exactly analogous to your personal Email account (mailbox). Rather than trying to make a direct connection to each trading partner, when we want to send data, we send it to a designated mailbox for that trading partner. When we want to receive data, we call our own mailbox to "check the mail". That way, each trading partner can send and/or receive data when it is convenient for them.

Several companies such as IBM, General Electric, and Sterling Commerce, to name a few, have established electronic networks for data often referred to as VANS, Value Added Networks. Any company requiring EDI can establish a mailbox with one of these networks by becoming a subscriber.

Each network charges subscribers in a manner similar to the phone company. That is, a basic monthly service fee plus utilization. The higher the volume of EDI transactions you send and receive, the higher your monthly service bill.

Do I have to subscribe to all the different networks?

In a word, no. Just as someone subscribing to AT&T long distance can call another person who subscribes to MCI long distance, all of the major networks have developed “pass-throughs” that permit the networks to interconnect and send data to each other automatically. Therefore, if you do business with multiple trading partners who all use different networks, you can probably subscribe to only one network and still communicate with all your trading partners.

What should I look for when purchasing EDI software?

There are several major companies offering off-the-shelf EDI software solutions. All of the “better” packages are designed to function as stand-alone systems and/or to be integrated with your company’s existing computerized order processing system. Because of the many different EDI functions, most EDI software is sold as a base package with various add-ons, so you can purchase only the functions you need. The basic functions performed by an EDI software package should include all of the following:

• formatted data entry screens that enable you to key enter the data you want to
  send to your trading partners.
• modem communications so you can send and retrieve information to and from
  your network
• formatted reports that let you print the data received from your trading partners
• the ability to export formatted EDI transactions to your existing computer system,
  even if you don’t have a system today
• the ability to import EDI transactions from your existing order processing system.
  

What is EDI integration?

Within the context of computer software, the word "integration" means sharing and managing data between two or more different software applications in some type of automated fashion. This is most commonly done through the use of programs that can import and export data to and from other applications. Each application does its own job, and then passes the appropriate data to the next application.

EDI integration applies to companies that want to automate the process of moving data from the EDI system into the order processing system (AIMS®), and from the order processing system into the EDI system.

Without integration, after you receive a purchase order from a trading partner, you have to print it on a report and then manually key enter that same data into your order processing system. Similarly, each time you produce an invoice for a trading partner, you have to print the invoice, and manually enter the same data into the EDI system so it can be sent to the trading partner.

If you are only processing a few transactions a month, that may not seem like a major concern. Obviously the costs associated with duplicate data entry quickly escalate as your EDI volume increases. This option is also most prone to human error, which often generates charge-backs that increase the costs even further.

With an integrated EDI system, after the trading partner’s purchase order is received by the EDI system, the integration software automatically transfers the data into your order processing system. Similarly, after the order is shipped and the invoice is created, the EDI integration software automatically transfers the shipping and invoice data to the EDI system so it can be transmitted to your trading partners.

EDI Integration Components

EDI integration with AIMS® can be accomplished in one of two ways:

1. by purchasing the various software components described in this section and
   doing it in-house, or
2. by using a service bureau.

This section describes the in-house option and outlines the components required. It also provides more details regarding specific EDI transactions.

AIMS® EDI Upgrade Module

Regardless of how you accomplish your EDI transactions, you will need to purchase the AIMS® EDI module. Because many of our customers do not require EDI in their businesses, the EDI portion of AIMS® is not included in the price of the base package. This upgrade enables AIMS® to import and export data with the EDI application.

EDI “In-House”

AIMS® has integrated with the appropriate partners to help you accomplish this. In the software business, "integration" means making different software applications work together. This can be a very beneficial, especially in the case of vertical market business applications like AIMS®, which was written for a very specific purpose.

EDI is a very large and complex application, well beyond the scope of AIMS®. Therefore, we have chosen to "integrate" AIMS® with Gentran:Director, an EDI software application from Sterling Commerce, a world wide leader in EDI software.

Maps for these trading partners are currently being written and maintained by Computer Technology Support.

EDI “Integrated” Service Bureau

AIMS has integrated with the appropriate partners to help you accomplish this with Innovative Systems, an EDI Service Bureau.