EDI 850 for efficient purchase order transactions, enabling accurate data exchange and streamlining procurement workflows.

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Customer Case Study: How EDI2XML Delivered Seamless EDI Integration for Opengear

EDI Integration with EDI2XML – Introduction

Opengear, a leader in secure and resilient network solutions, sought to streamline their business operations by automating the exchange of critical business documents with trading partners. This case study highlights how EDI2XML’s Fully Managed EDI Service provided Opengear with a scalable and efficient solution, enabling them to transition from manual processes to a fully automated EDI integration with their Salesforce CRM system. By leveraging cutting-edge technology and expert implementation, Opengear significantly improved their operational efficiency, accuracy, and customer satisfaction.

Our Client: Opengear Overview

Opengear specializes in providing secure, resilient network access and automation solutions, helping IT and network operations teams improve efficiency and reliability. Headquartered in Edison, New Jersey, with engineering in Brisbane, Australia, and production in Sandy, Utah, Opengear supports critical infrastructure across industries.

Their offerings include out-of-band management and NetOps solutions tailored to business continuity. The company has built a strong reputation for its ability to provide reliable solutions that ensure uninterrupted access to critical systems, even during network outages.

Opengear’s mission is to empower IT teams with the tools necessary to manage, monitor, and remediate network issues efficiently. With a growing customer base and expanding operations, the need for streamlined and automated processes became essential to maintaining their high standards of service.

Challenges

Before adopting EDI, Opengear faced several operational inefficiencies and challenges:

  1. Manual Data Entry: Employees manually processed sales orders from PDF documents into Salesforce CRM, leading to time inefficiencies and a high risk of human error. This process required significant staff hours, particularly during high-volume periods.
  2. Inconsistent Data Accuracy: Errors during manual entry affected order details, inventory management, and customer satisfaction. These inaccuracies often resulted in delays and the need for manual corrections, further slowing operations.
  3. Operational Inefficiency: Manual processes slowed order processing and fulfillment, particularly during peak periods like quarter-end and month-end. This created bottlenecks that impacted both internal operations and customer experiences.
  4. Delayed Processing: Manual workflows created time lags between receiving and entering orders, delaying production planning and fulfillment. The lack of real-time data visibility hindered decision-making and responsiveness.
  5. Limited Scalability: The growing volume of transactions outpaced the capabilities of manual processes, hindering growth. Opengear found it increasingly challenging to meet the demands of their expanding customer base without risking service quality.
  6. Lack of Real-Time Updates: Without automated updates, responding to changes or issues with orders was challenging. This lack of agility occasionally led to missed opportunities and strained relationships with trading partners.

These issues underscored the need for a robust, automated EDI solution to enhance efficiency, accuracy, and scalability.

EDI2XML Solution

EDI2XML’s Fully Managed EDI Service was the chosen solution to address Opengear’s challenges. The integration platform seamlessly connected Opengear’s trading partners with their Salesforce CRM, automating the entire document exchange process. By leveraging EDI2XML’s expertise, Opengear was able to implement a tailored solution designed to meet their specific needs.

Key components of the solution included:

  1. Automated Document Collection: EDI2XML collected incoming EDI documents (e.g., X12 850 purchase orders) every 15 minutes, ensuring timely processing.
  2. Data Transformation: The EDI documents were transformed into formats compatible with Salesforce CRM, using validated Magic xpi connectors to ensure seamless integration.
  3. Salesforce Integration: The transformed data was automatically transferred to Opengear’s Salesforce instance, updating relevant fields and enabling real-time visibility.
  4. Validation and Notifications: The platform validated item-level pricing against predefined criteria, triggering automated email notifications based on validation results. If discrepancies were found, orders were flagged, and corrective actions were initiated.
  5. Continuous Monitoring: Functional acknowledgments were sent to trading partners as needed, ensuring compliance and smooth operations. EDI2XML monitored all transactions to identify and resolve potential issues proactively.

Useful reading: How to get more out of Salesforce with EDI Integration

EDI integration diagram

Implementation Process

The implementation was completed in several key stages:

  1. Initial Analysis: EDI2XML conducted a detailed analysis of Opengear’s requirements, including a review of their existing processes, Salesforce CRM configuration, and trading partner specifications. This phase involved close collaboration to ensure all requirements were accurately captured.
  2. Configuration: The platform was configured to handle X12 850 Purchase Orders and other relevant document types. EDI2XML set up the AS2 communication protocol for secure data exchange with trading partners.
  3. Mapping and Development: Business flows were developed, and data mapping was conducted to align EDI document fields with Salesforce CRM columns. This ensured accurate data transfer and compatibility.
  4. Testing: Comprehensive testing included full-cycle validation of data flows, functional acknowledgment processes, and Salesforce CRM integration. Opengear’s team worked closely with EDI2XML to verify all aspects of the implementation.
  5. Deployment: The solution went live within a month, showcasing rapid implementation capabilities. Opengear experienced minimal disruption during the transition.
  6. Ongoing Support: Continuous monitoring and support ensured optimal performance and timely resolution of issues. EDI2XML provided training and documentation to Opengear’s team, enabling them to maximize the benefits of the solution.

Integration with Magic xpi: Streamlining EDI and Salesforce CRM Workflows

Magic xpi is a robust integration platform designed to simplify and accelerate the process of connecting diverse systems, applications, and data sources. In the context of Opengear’s integration with Salesforce CRM, Magic xpi played a pivotal role by providing a secure, scalable, and highly efficient environment for managing EDI-to-Salesforce transformations.

Magic xpi ensured the accurate mapping and transformation of data fields, facilitating automated and error-free document exchanges. The following points detail how Magic xpi was utilized in this implementation:

  1. Mapping Data Fields: Magic xpi’s graphical interface was used to map EDI document fields, such as purchase order details (X12 850) and customer information, to the corresponding fields in Salesforce CRM. For instance, product codes, quantities, and prices from incoming orders were mapped directly to Salesforce Opportunity Line Items, ensuring consistency and accuracy.
  2. Connector Capabilities: The Magic xpi Salesforce connector allowed for real-time data updates and retrieval. For example, customer contact details from EDI files were used to create or update Salesforce Contact and Account records automatically. This reduced manual input and enhanced data synchronization.
  3. Custom Business Logic: Magic xpi provided tools to define and execute custom business rules. For example, if an EDI order contained invalid product codes or incomplete shipping details, the integration logic flagged these orders for review while sending notifications to the appropriate teams.
  4. Visualization of Data Flows: Using Magic xpi’s mapping tools, Opengear’s team could visually understand how data moved from EDI sources to Salesforce destinations. This transparency was crucial for validating data flows during the testing phase.
  5. Error Handling and Notifications: In cases where mapping errors occurred, Magic xpi triggered automated notifications, allowing Opengear’s team to address issues promptly. Logs and error reports generated by Magic xpi facilitated rapid troubleshooting.
  6. Scalability: Magic xpi’s scalable architecture ensured that the integration could handle increasing volumes of EDI transactions as Opengear’s operations expanded. Adding new trading partners or document types required minimal adjustments to existing mappings.

The integration process, powered by Magic xpi, was instrumental in transforming Opengear’s manual workflows into efficient, automated processes, saving time and reducing errors. Below are examples of data mappings between EDI documents and Salesforce CRM, as shown in Magic xpi’s interface:

magic xpi edi mapping

magic xpi Salesforce integration

  • Mapping Opportunity Line Items: EDI order details, such as line item descriptions, prices, and quantities, were mapped to Salesforce Opportunity Line Items. This ensured accurate and real-time updates to Salesforce opportunities.
  • Mapping Customer Details: Shipping and billing addresses from EDI orders were mapped to Salesforce Account and Contact records, enabling quick and error-free creation or updates.

Key features of Magic xpi include:

  1. Pre-Built Connectors: Magic xpi offers pre-built connectors for Salesforce CRM, enabling seamless integration without extensive custom coding. These connectors ensure compatibility with Salesforce APIs and simplify the mapping of EDI fields to Salesforce objects such as Opportunities, Orders, or Accounts.
  2. Visual Data Mapping: Magic xpi’s intuitive visual interface allows developers to map EDI data fields (e.g., from X12 850 purchase orders) to corresponding Salesforce fields. For example, the “Item Number” in the EDI document can be mapped to the “Product Code” in Salesforce, ensuring accurate data transfer.
  3. Real-Time Data Processing: The platform supports real-time data flows, ensuring that incoming EDI documents are processed and pushed to Salesforce CRM almost instantaneously. This capability was critical for Opengear’s requirement to eliminate delays in order processing.
  4. Error Handling and Validation: Magic xpi includes built-in tools for data validation and error handling. For Opengear, this meant that any discrepancies in pricing or other critical fields were flagged during the mapping process, allowing for automated notifications and corrective actions.
  5. Scalability: As a cloud-based platform, Magic xpi is designed to handle increasing volumes of data and transactions. This ensured that Opengear’s integration solution could grow alongside their expanding business needs.

How Magic xpi Integrates EDI with Salesforce CRM

The integration process facilitated by Magic xpi involves several critical steps:

  1. Data Extraction: Magic xpi collects incoming EDI files from a designated mailbox. These files are then parsed and prepared for transformation.
  2. Transformation: The platform translates the raw EDI data into a format compatible with Salesforce CRM. This includes converting EDI segments like “BEG” (beginning segment for purchase orders) into Salesforce fields such as “Order ID.”
  3. Data Mapping: Using Magic xpi’s graphical interface, the transformed data is mapped to specific Salesforce fields. This step ensures that all critical information, such as customer details, order items, and pricing, is accurately captured.
  4. Validation: Before transferring data, Magic xpi validates it against predefined business rules. For instance, if an order contains an invalid product code or mismatched pricing, the platform triggers an alert.
  5. Data Transfer: Once validated, the data is pushed into Salesforce CRM via the pre-configured connector. Magic xpi ensures that the integration adheres to Salesforce’s API guidelines, maintaining data integrity and security.
  6. Notifications: Magic xpi sends automated email notifications to relevant stakeholders, summarizing the results of the data transfer and highlighting any issues that require attention.

Integration price

Positive Experience During Integration

Throughout the integration process, Opengear experienced exceptional support and expertise from the EDI2XML team. The specialists at EDI2XML demonstrated a deep understanding of EDI processes and Salesforce integration, ensuring a smooth and efficient implementation. Their responsiveness to inquiries and proactive approach to problem-solving left a lasting impression on the Opengear team. Any questions or concerns were addressed promptly, and the team’s professionalism and technical competence exceeded expectations.

Opengear particularly appreciated the clear communication and collaborative mindset of EDI2XML’s specialists. Regular updates and progress reports kept the project on track, and their commitment to delivering a tailored solution underscored their dedication to client success. As a result, the integration process was not only seamless but also a valuable learning experience for Opengear.

Given the nature of the Fully Managed EDI Service, Opengear continues to rely on EDI2XML for ongoing support and maintenance. This partnership ensures that Opengear’s EDI processes remain optimized and scalable, providing confidence as their business grows.

Results and Benefits

Opengear experienced significant improvements in operational efficiency and business performance:

  • Enhanced Efficiency: Automation eliminated manual data entry, reducing errors and freeing up employee time for strategic tasks. Staff could focus on value-added activities, improving overall productivity.
  • Improved Accuracy: Real-time data validation ensured consistent and reliable order processing. The solution significantly reduced the incidence of errors, enhancing order accuracy and customer satisfaction.
  • Scalability: The cloud-based solution scaled effortlessly with Opengear’s growing transaction volume, accommodating new trading partners and document types as needed.
  • Faster Fulfillment: Automated workflows accelerated order processing and fulfillment times. Opengear could now process orders within minutes of receipt, improving responsiveness.
  • Cost Savings: Reduced manual work minimized labor costs and errors, contributing to overall cost efficiency.
  • Improved Relationships: Real-time updates and streamlined communication strengthened partnerships with trading partners, fostering trust and collaboration.

Client Testimonial

Dom Battista, Director of Global Sales Operations at Opengear, shared his thoughts on the EDI implementation:

“The integration was flawless—accurate, efficient, and incredibly quick. The EDI2XML team accommodated our needs at every step, ensuring a seamless transition. This solution transformed our operations, allowing us to scale and keep up with the demands of a growing business.”

EDI Integration FAQ

1. What is EDI integration with Salesforce CRM?

EDI integration with Salesforce CRM involves automating the process so that business documents like purchase orders (EDI 850) and invoices (EDI 810) are transformed into a format compatible with Salesforce and directly entered into Salesforce without manual data entry. This is specifically for trading partners who use Salesforce as their CRM. This eliminates manual data entry, ensuring accuracy and efficiency.

2. How does a Fully Managed EDI Service work?

A Fully Managed EDI Service from EDI2XML handles all aspects of EDI implementation, including document collection, transformation, and integration. It also includes continuous monitoring and support to ensure smooth operations.

3. What are the benefits of automated EDI processes for small businesses?

Automated EDI processes reduce manual effort, minimize errors, improve scalability, and enhance trading partner relationships. They enable small businesses to operate more efficiently and compete effectively in their markets. Moreover, small EDI-compliant companies can quickly begin doing business with large retailers like Costco, Walmart, and Target that require EDI for their transactions.

4. How long does it take to implement EDI integration?

Implementation timelines vary, but EDI2XML’s solution for Opengear was completed within one month, showcasing the potential for rapid deployment with minimal disruption.

5. What is the role of the Magic xpi connector in this solution?

The Magic xpi connector acts as a bridge between the EDI2XML platform and Salesforce CRM, ensuring seamless data transformation and transfer.

Glossary of Terms

AS2 (Applicability Statement 2): A communication protocol used for securely exchanging EDI documents over the internet. AS2 ensures reliable and encrypted transmission between trading partners.

X12 850 (Purchase Order): A standard EDI transaction set used by businesses to place purchase orders with their suppliers. It includes details like item descriptions, quantities, and prices.

Functional Acknowledgment (997): An EDI document sent to confirm the receipt of another EDI document, ensuring that it was successfully received and processed without errors.

EDI (Electronic Data Interchange): A standardized method for exchanging business documents (e.g., purchase orders, invoices) between companies electronically, eliminating the need for manual data entry.

Salesforce CRM: A cloud-based customer relationship management platform that allows businesses to manage sales, service, and customer interactions efficiently.

Magic xpi Integration Platform: A middleware solution that connects different systems, applications, and services, enabling seamless data integration and communication between them. It provides pre-built connectors and tools to facilitate integrations like Salesforce and EDI systems.

Integration: The process of connecting different systems, software, or platforms to work together as a unified solution. Integration ensures seamless data exchange and streamlines workflows across platforms.

Cloud-Based Solution: Software or services hosted on remote servers and accessed via the internet, offering scalability, flexibility, and reduced infrastructure costs.

Trading Partner: A business entity (e.g., supplier, distributor) involved in exchanging EDI documents with another organization.

Mapping: The process of linking data fields from one format (e.g., EDI) to another (e.g., Salesforce CRM) to ensure accurate data transfer and compatibility between systems.

Validation: A process to ensure that incoming or outgoing data meets predefined criteria or standards, such as correct pricing, formatting, or completeness.

Conclusion – EDI Integration

By partnering with EDI2XML, Opengear successfully modernized their business processes, overcoming inefficiencies and preparing for future growth. This case study demonstrates the power of a tailored, fully managed EDI solution in driving operational excellence and scalability for growing businesses.

The seamless integration with Salesforce CRM has positioned Opengear to meet increasing demands, maintain exceptional service standards, and achieve long-term success.

Want to streamline your EDI integration like Opengear? Contact EDI2XML today for a free consultation!

Contact EDI2XML today for a free consultation

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EDI ANSI X12 Transaction Set 850 Purchase Order Explained

In this blog, we will navigate through the ANSI X12 EDI standard, with a focus on the 850 (Purchase Order) transaction set. This transaction set is a major business document exchanged between most business partners, whether they are a manufacturer, retailer, or businesses part of the same supply chain. The 850-transaction set is the backbone of the electronic data interchange in today’s heavily digitized world. This post is based on over 24 years of EDI experience with hundreds of EDI integration projects implementations.

What is Electronic Data Interchange (EDI)?

Let’s start with a little refresher; Electronic Data Interchange (EDI) is the protocol designed to exchange business documents, electronically, between business entities wanting to collaborate at the business level, as vendor and client.

In simple terms, EDI is an electronic exchange of digital business documents, between a sender and a receiver company, in a very structured and standard format. This protocol is used by businesses around the world as their main method to exchange business documents. Obviously, since it is standardized, there are currently lots of organizations and standards to manage i.e. ANSI, UN/EDIFACT, Tradacomms and many others depending on the industry and business needs.

EDI Purchase Order (850) Definition

The ANSI X12 EDI Purchase Order coded as 850, is a “Transaction Set” nick named as EDI 850 or EDI X12 850 or just PO, is a fundamental document in EDI. EDI 850 is a formal business and commercial request sent by the buyer (purchasing company) to the supplier (seller) for demand of delivery of goods and/or services at an agreed price.

What business information is contained in an EDI Purchase Order?

A typical EDI 850 Purchase Order includes typical commercial data included in any business purchase order, such as:

  • Purchase order date
  • Purchase order number
  • Item description
  • Item price and quantities
  • Payment terms
  • Discounts
  • Shipping details
  • Requested delivery date
  • Location(s) where the goods should be delivered to

How is the EDI 850 handled by the EDI service provider?

A little summary description about the EDI 850 flow:

Typically, the buyer creates a Purchase Order in his internal ERP system (i.e. SAP, Microsoft Dynamics, JD Edwards, etc.); it can be created in the ERP system automatically or manually, depending on the business process of the company.

Then, the generated Purchase Order is converted to an appropriate format acceptable by the EDI service provider to translate to the appropriate standard and format. Once the purchase order is transferred to the EDI provider, he will then convert the PO document to ANSI X12 EDI 850 transaction set. After conversion, the EDI 850 is sent to the destination (or the recipient).

Useful information:

If you are looking for an EDI Service provider or you are not satisfied with your current provider and want to get the best EDI services, find out here how to choose the right EDI Service Provider.

Difference Between EDI 850 and 875?

EDI 875 and EDI 850 are two different transaction sets that are used in electronic data interchange (EDI) to exchange business documents between trading partners.

Unlike the 850, EDI 875 transaction set is used to place orders for grocery products specifically. It sent by chain stores to their suppliers and vendors, to replenish inventory at the store level. However, the EDI 850 transaction set is used for purchase orders. The main difference between the two is the specific industry or vertical.

The EDI 850 Purchase Order transaction set is more generic in terms of its usage; it is used across various industries to communicate purchase ordering for goods and services from a buyer to a supplier. The 850 typically includes the minimum information needed on a purchase order, such as item description, quantity, price, delivery date, and payment terms.

On the other hand, the EDI 875 Grocery Products Purchase Order transaction set is used specifically in the grocery industry for the purchase of perishable and non-perishable goods, and includes additional information such as weight, temperature requirements, expiry date and other special handling instructions.

In summary, both EDI 850 and EDI 875 are used as a legal purchase order to buy goods and services. They are designed for different industries and have different data requirements.

EDI 850 X12

EDI 850 Exchange and Communication Protocols

For the exchange of EDI documents, including EDI 850, there exist different methods and communication protocols used in this industry:

For the exchange of EDI documents, including EDI 850, there are various communication Protocols:

VAN (Value-Added-Network)

A value-added network (VAN) is a private network that ensures the secure transfer of EDI data between the source and the destinations (or partners). VANs normally interconnect between each other’in order to keep the transmission secure.

AS2 (Applicability Statement 2)

AS2 (Applicability Statement 2) is secure messaging over the Internet using digital certificates and encryption.

FTP (File Transfer Protocol)

FTP (File Transfer Protocol) is a standard network protocol built on a client-server architecture.

sFTP (Secure File Transfer Protocol)

sFTP (Secure File Transfer Protocol) secure version of FTP for data transfer over the Internet.

HTTPS (Hypertext Transfer Protocol Secure)

HTTPS (Hypertext Transfer Protocol Secure) is an extension of HTTP and a secure way for communication over the Internet.

It is to note thar one company may decide to use several protocols to exchange EDI documents with its various trading partners. This usually happens because suppliers must meet the requirements of their trading partners.

What EDI documents are involved in EDI X12 850 workflow?

For a business relationship between business partners, a single EDI 850 transaction is not enough. Although a purchase order is a basic document, business partners generally would exchange the complimentary additional following documents:

  • EDI 997 Functional Acknowledgement – sent by the receiver of the transaction as a response to confirm receipt of EDI 850 or any other EDI document. This is a signature to indicate that the digital file was received physically, its content is valid in terms of Syntax, but without looking at the data values.
  • EDI 855 Purchase Order Acknowledgment– used by sellers to accept, reject, or modify a Purchase Order.
  • EDI 860 Purchase Order Change Request – used by buyer if necessary to make changes to a previously submitted Purchase Order; or to accept change initiated by the seller.
  • EDI 856 Advance Ship Notice –send by a seller to a buyer to describe the shipped items and type of packaging. ASN is sent immediately after the goods left the seller’s location.
  • EDI 810 Invoice –request for payment of goods or services

Structure of EDI X12 850 Transaction Set

Any EDI X12 document, including the 850 (Purchase Order) transaction, consists of different segments where the initial segments are called Header, and the final segment is called Trailer:

a. Interchange Control Header (ISA) /Trailer (IEA)

b. Functional Group Header (GS) / Trailer (GE)

c. Transaction Set Header (ST) / Trailer (SE)

EDI 850

For more information about EDI structure, data elements, and terminology learn our article:

EDI ANSI ASC X12 Standards – Technical Overview

Purchase Order 850 Sample File

The ISA, GS, ST elements contain Functional ID code, the sender’s and receiver’s ID code, date, time etc.

The transaction set envelope contains transaction detail, with information about a product, weight, size, color, volume etc.

ISA*00*          *00*          *ZZ*A1STORES    *12*5142645505     *190510*0728*|*00403*100000013*0*P*}

GS*PO*A1STORES*5142645505*20200510*0728*1013*X*004030

ST*850*1013

BEG*00*SA*2332233**20200510

REF*IA*66910

PER*BD*Contact Name*TE*123-455-7880

FOB*DF

DTM*010*20200517

DTM*001*20200525

TD5*****Carrier Routing*******CG

N1*ST*Towner Square Schooms*92*006

N3*Williston Towner Square*2100 11th St SW

N4*Williston*ND*58701

PO1*1*4*EA*4.15**UP*066810348563*IT*WACT750SP16-BLK

CTP**RTL*7.99

PID*F*08***Nike Boy Short Black sz M

PO1*2*6*EA*5.00**UP*066810349983*IT*WACT170SP16-AMP

CTP**RTL*7.99

PID*F*08*** Reebok Boy Short Abstract Print sz M

PO1*3*4*EA*5.25**UP*066810349747*IT*WACT790SP16-BLK

CTP**RTL*9.99

PID*F*08*** Puma Boy Short Red sz M

CTT*3

SE*22*1013

GE*1*1013

IEA*1*100000013

Although EDI 850 must comply with ANSI ASC X12 standard, a Purchase Order can vary greatly depending on industry and trading partners. Even in the same industry, EDI 850 may vary, as it is customized to the specific needs of the company.

Benefits and Opportunities of the 850 Purchase Order

Profitability

  • speeds up the supply chain
  • saves on printing and document delivery
  • increases the speed of payment
  • saves resources for duplication, sorting and storage of documents

Efficiency

  • instantly notifies partners of new orders
  • eliminates manual input errors
  • reduces the number of adjustments
  • allows rational use of human resources

Integration

  • Integrates with any business system (ERP, CRM, Warehouse Management, accounting, etc.)
  • allows companies to build analytical reports
  • connects business partners from anywhere in the world

Security

  • electronic documents in encrypted and unchanged form
  • eliminates the risk of losing orders

About EDI2XML

Our knowledge, expertise, and experience in EDI integration allow us to provide our customers with solutions that take business to a new level.

We cooperate with leading technology companies to develop cutting-edge solutions that can change your business. We use innovative solutions for various industries and help our customers solve the most complex EDI integration issues.

EDI 850

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All You Need to Know About EDI ANSI X12 Transaction Set 850 Purchase Order

What Does EDI Stand For?

Electronic Data Interchange (EDI) is one of the fundamental protocols of business documents exchange, for companies collaborating in today’s business world.

Electronic Data Interchange (EDI) is an electronic exchange of business information between companies in a standardized format. This technology is used by businesses around the world as their main method to exchange business documents. Thus, EDI is a modern and effective document exchange standard and sometimes the only way to exchange documents between trading partners.

What is an EDI Purchase Order?

ANSI X12 EDI 850 Purchase Order Transaction Set simply named EDI 850 or EDI X12 850 or just PO is a fundamental document in EDI. EDI 850 is a formal request sent by the buyer (purchasing company) to the supplier (seller) for the demand of delivery of goods and/or services at an agreed price.

What Information an EDI Purchase Order Contains?

A typical EDI 850 Purchase Order includes the following information:

  • Purchase order date
  • Purchase order number
  • Item description
  • Item price and quantities
  • Payment terms
  • Discounts
  • Shipping details
  • Requested delivery date
  • Location(s) where the goods should be delivered to

How Does an EDI Service Provider Manage the EDI 850?

Typically, the buyer creates a Purchase Order in his internal ERP system (i.e. SAP, Microsoft Dynamics, JD Edwards, etc.). The Purchase Order can be created in the ERP system automatically or manually, depending on the business process of the company. Then, the generated Purchase Order is transferred to the EDI provider, or the provider will pick it up directly from the ERP system of the company. The EDI service provider than converts the purchase order document to the ANSI X12 EDI 850 transaction set. After conversion, the EDI 850 is sent to the supplier (or the destination).

Useful information:

If you are looking for an EDI Service provider or you are not satisfied with your current provider and want to get the best EDI services, find out here how to choose the right EDI Service Provider.

What is the Difference Between EDI 875 and 850?

EDI 875 and EDI 850 are two different transaction sets that are used in electronic data interchange (EDI) to exchange business documents between trading partners.

The EDI 850 transaction set is used for purchase orders, while the EDI 875 transaction set is used for grocery products purchase orders. The main difference between the two is the specific industry or business sector they are designed for.

The EDI 850 Purchase Order transaction set is used across various industries to communicate the request for goods or services from a buyer to a supplier. The 850 typically includes information such as item description, quantity, price, delivery date, and payment terms.

On the other hand, the EDI 875 Grocery Products Purchase Order transaction set is used specifically in the grocery industry for the purchase of perishable and non-perishable goods, and includes additional information such as weight, temperature requirements, and other special handling instructions.

In summary, while both EDI 850 and EDI 875 are used for purchase orders, they are designed for different industries and have different data requirements.

EDI Communication Protocols to Transfer EDI 850

For the exchange of EDI documents, including EDI 850, there are various communication Protocols:

VAN (Value-Added-Network)

VAN is a private, hosted service and a secure way to exchange EDI data between trading partners.

AS2 (Applicability Statement 2)

AS2 (Applicability Statement 2) is secure messaging over the Internet using digital certificates and encryption.

FTP (File Transfer Protocol)

FTP (File Transfer Protocol) is a standard network protocol built on a client-server architecture.

sFTP (Secure File Transfer Protocol)

sFTP (Secure File Transfer Protocol) secure version of FTP for data transfer over the Internet.

HTTPS (Hypertext Transfer Protocol Secure)

HTTPS (Hypertext Transfer Protocol Secure) is an extension of the HTTP and a secure way for communication over the Internet.

Moreover, one company may use different protocols to exchange EDI documents with its various trading partners. This usually happens because suppliers have to meet the requirements of their trading partners.

A Typical Set of EDI Documents Involved in EDI X12 850 Workflow

For a trading relationship between business partners, a single EDI 850 transaction is not enough. Although a purchase order is a basic document, business partners generally would exchange the additional following documents:

  • EDI 997 Functional Acknowledgement – sent by the receiver of the transaction as a response to confirm receipt of EDI 850 or any other EDI document
  • EDI 855 Purchase Order Acknowledgment used by sellers to accept, reject, or modify a Purchase Order.
  • EDI 860 Purchase Order Change Request – used by buyer if necessary to make changes to a previously submitted Purchase Order; or to accept change initiated by the seller.
  • EDI 856 Advance Ship Notice –send by a seller to a buyer to describe the shipped items and type of packaging. ASN is sent immediately after the goods left the seller’s location.
  • EDI 810 Invoice –request for payment of goods or services

EDI X12 850 Transaction Set Structure

An EDI X12 850 (Purchase Order), as well as all other EDI X12 documents, consists of different segments where the initial segments are called Header, and the final segment is called Trailer:

Interchange Control Header (ISA) /Trailer (IEA)

Functional Group Header (GS) / Trailer (GE)

Transaction Set Header (ST) / Trailer (SE)

edi and EDIFACT structure

For more information about EDI structure, data elements and terminology learn our article:

EDI ANSI ASC X12 Standards – Technical Overview

EDI X12 850 Purchase Order Sample

The ISA, GS, and ST elements contain a Functional ID code, the sender’s and receiver’s ID code, date, time, etc.

The transaction set envelope contains transaction detail, with information about a product, weight, size, color, volume, etc.

ISA*00*          *00*          *ZZ*A1STORES    *12*5142645505     *190510*0728*|*00403*100000013*0*P*}

GS*PO*A1STORES*5142645505*20200510*0728*1013*X*004030

ST*850*1013

BEG*00*SA*2332233**20200510

REF*IA*66910

PER*BD*Contact Name*TE*123-455-7880

FOB*DF

DTM*010*20200517

DTM*001*20200525

TD5*****Carrier Routing*******CG

N1*ST*Towner Square Schooms*92*006

N3*Williston Towner Square*2100 11th St SW

N4*Williston*ND*58701

PO1*1*4*EA*4.15**UP*066810348563*IT*WACT750SP16-BLK

CTP**RTL*7.99

PID*F*08***Nike Boy Short Black sz M

PO1*2*6*EA*5.00**UP*066810349983*IT*WACT170SP16-AMP

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PO1*3*4*EA*5.25**UP*066810349747*IT*WACT790SP16-BLK

CTP**RTL*9.99

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SE*22*1013

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IEA*1*100000013

Although EDI 850 must comply with ANSI ASC X12 standard, a Purchase Order can vary greatly depending on industry and trading partners. Even in the same industry, EDI 850 may vary, as it is customized to the specific needs of the company.

EDI 850 Benefits and Opportunities

Profitability

  • speeds up the supply chain
  • saves on printing and document delivery
  • increases the speed of payment
  • saves resources for duplication, sorting, and storage of documents

Efficiency

  • instantly notifies partners of new orders
  • eliminates manual input errors
  • reduces the number of adjustments
  • allows a rational use of human resources

Integration

  • Integrates with any business system (ERP, CRM, Warehouse Management, accounting, etc.)
  • allows companies to build analytical reports
  • connects business partners from anywhere in the world

Security

  • electronic documents in encrypted and unchanged form
  • eliminates the risk of losing orders

About EDI Provider EDI2XML

Our knowledge, expertise, and experience in EDI integration and automation allow us to provide our customers with solutions that take the business to a new level.

We cooperate with leading technology companies to develop cutting-edge solutions that can change your business. We use innovative solutions for various industries and help our customers solve the most complex EDI integration issues.

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The most used EDI messages in the supply chain management

This post was updated to reflect current trends and information.

In this article, we want to talk about the top EDI messages commonly used by trading partners in supply chain management. We will explain the purpose of the EDI messages and their benefits.

What is EDI?

The acronym of EDI is Electronic Data Interchange. The main objective of EDI is to replace the exchange of paper-based business documents.

EDI is the exchange of structured business documents used in B2B. The implementation of EDI is almost limitless. EDI is present in every commercial activity:
– supply chain management
– e-commerce
– Warehousing
– Insurance
– Banking and finance
Electronic data interchange (EDI) is helping businesses to automate specific business processes, as well as to cover an entire cycle of logistics.

What does EDI mean in logistics?

In short terms, an EDI is a flow where one business partner can create digital and electronic “business documents”, compliant to a specific standard (i.e. X12, EDIFACT, Tradacom, RosettaNet,) and transfer to the second party in a secured telecommunication channel.

Useful: eBook:  EDI – Key Information You Need to Know

The most commonly used set of EDI messages

Top EDI messages

Following is the list of o the most commonly used EDI transaction sets used in today’s business space, from supply chain management to e-commerce, you will find the following documents as the basics for EDI exchange:

– EDI 846 Inventory status
– EDI 850 Purchase Order
– EDI 855 Purchase Order Acknowledgement
– EDI 856 Ship Notice/manifest (ASN)
– EDI 860 P/O Change
– EDI 810 Invoice

The above EDI messages, called “must-have” because they are necessary to automate the most important trading cycle in the supply chain management, eCommerce, and Drop-ship space.

Many companies do not limit themselves only on the above EDI messages, they can decide to leverage other transactions and business documents to improve their supply chain effectiveness; as an example, they can request to add the 753, 754, and other documents related to pickup and delivery…

Useful: EDI Transaction Types – Complete List of EDI Transactions

EDI messages types

EDI 846 Inventory status

Most trading partners in the supply chain and eCommerce space, request that their suppliers update them with their inventory status by sending the EDI 846 document. You can check the details about this document in this article.

EDI 850 Purchase Order

Often, this is the first type of EDI message that companies such as retail chains, manufacturers, warehouses, or 3PL-providers to exchange when they switch to EDI.

EDI 850 contains:

  • Order number
  • Required date and time of delivery
  • Reference to the contract or contract number
  • Price
  • Sender and customer information, the place of delivery
  • Information on the contents of the order (bar codes, quantity, the name of the goods, multiplicity of packaging).

With the EDI 850, the product ordering process goes faster and becomes cheaper as the number of people involved in the process is reduced. Thanks to the fast and guaranteed transfer of information about the order, the supplier improves the reliability of the deliveries.

EDI 855 Purchase Order Acknowledgement

EDI 855 response to the Purchase Order is a “couple” message for EDI 850. The supplier sends EDI 855 to the buyer in accordance with the order value or suggesting to make changes regarding order quantities. This helps to avoid disruption in the supply chain.

Useful reading: What is EDI 855 Purchase Order Acknowledgment?

EDI 856 Ship Notice/manifest or ASN

ASN is a pair of EDI 861 Receiving Advice.

These notifications are exchanged between the business partners at the stage of shipment and receipt of the goods.

The supplier sends ASN immediately after the shipment. This EDI message helps to simplify and speed up the process of acceptance of goods. EDI 856 Ship Notice/manifest contains detail shipment information:

  • Shipment information (bill of lading number, ship to, ship from, etc.)
  • Unit load information about a physical shipping item.
  • Order information such as purchase order number, buying place, division number, etc.
  • Tare information about the pallets.
  • Pack information about the shipping package (cartons, racks, bags, etc.,)
  • Item information about the shipped goods, such as SKU identification, quantity shipped, etc.

Companies that have implemented ASN significantly increase the speed of receiving goods and entering data into the business system – with EDI 856 you do not need to drive numbers manually from the invoices. ASN information can go directly to the business system.

For the big trading retailers, this type of EDI message is a vital necessity. Advance notification of the goods delivery helps to prepare for its acceptance. Even before the supplier’s truck arrives, the retailers already have a list of the goods sent.

EDI 860 Buyer triggered P/O change

EDI 860 is a transaction sent to the supplier advising him about a change in the Purchase order sent earlier. The change can be to increase/decrease/delete quantities on an order or to change dates.

EDI 810 Invoice

EDI 810 Invoice is an electronic invoice transaction sent by the supplier to the buyer.

Learn more about  x12 810 Invoice in this article: What is an ANSI ASC X12 EDI 810 invoice?

Becoming EDI Compliant

We will help you save on EDI, quickly perform the integration, configure the connection with any trading partner or supplier.

Contact us today for more information and for pricing.

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Related Posts:

What is EDI 846 document?

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

What Are the Differences Between ANSI X12 and UN/EDIFACT

EDI compliance and integration with Burlington Coat Factory

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This post was updated to reflect current trends and information.

Company Overview of Burlington Coat Factory

Burlington Coat Factory is an American national off-price department store retailer and a division of Burlington Coat Factory Warehouse Corporation. The company operated 592 stores located in 45 states and Puerto Rico, inclusive of an internet store and has approximately 40 000 employees.

As per the company’s website, the first store was opened in Burlington, New Jersey in 1972, selling principally coats and outerwear.  Since then company diversified product categories by offering an extensive selection fashion-focused, labeled merchandise acquired directly from nationally recognized manufacturers and other suppliers.

Burlington Coat Factory EDI Standards

For all communications with their suppliers, Burlington Coat Factory use Electronic Data Interchange (EDI) including purchase orders, Advance Ship Notices (ASN), Invoices etc. The company is on EDI X12 v4010 standard.

Burlington Coat Factory EDI Specification

850 Purchase Order

Burlington Coat Factory sends 850 Purchase Orders via EDI, to inform their seller of a product request. A Purchase order 850 may be used to provide distribution requirements for receiving location(s), such as cross-dock, drop-ship, or direct to consumer as would be the case for the Burlington online store.

For each 850 Purchase Order, they indicate a purchase order number, a P/O date, the location of the ship to, provide a delivery time and product pricing.

856 Ship Notice/Manifest

Burlington Stores requires their seller to send an 856 Ship Notice/Manifest via EDI, to be advised of shipment information. The 856 transactions, includes order information, description of goods, types of packaging used, carrier information and more.

For a single purchase order, there can be or more shipments which would be followed by one or more 856 ASN Advance Ship Notice and possibly one or more 810 Invoices.

810 Invoice

The suppliers of Burlington Coat Factory have to comply with X12 810 Invoice to bill Burlington for products and services shipped to their stores.

Using an EDI 810 Invoice, permits Burlington to register payment-request information and update automatically their appropriate systems. The information included in the Invoice 810 provides automated cross-referencing of a purchase order and receiving information. This process is executed without manual intervention, thus eliminating further data entry.

824 Application Advice

Burlington Stores send 824 Application Advice via EDI, to notify the acceptance, rejection or acceptance with change of a trading partner’s transaction. The 824 transaction set contains information such as quantity and monetary amounts, dates, reference numbers, it also provides trading partner information, technical error descriptions in free-form text format.

852 Product Activity

The EDI message 852 Product Activity sent by Burlington to transmit product sales by location to the supplier. These messages inform a supplier about the items sold and items on hand at a store and its level. Burlington sends the EDI 852 message on a scheduled basis (e.g., weekly on Mondays) for input to a vendor’s sales and inventory management system.

997 Functional Acknowledgment

997 Functional Acknowledgment is required by Burlington, when sending or receiving EDI transactions. 997s, are an indication that a trading partner has successfully received a well-formed EDI message. The message Functional Acknowledgments 997 generated automatically for transmission back to the sending party.

Becoming EDI compliant with Burlington Coat Factory

EDI2XML offers full EDI integration with Burlington Coat Factory. From A to Z, a customer’s EDI requirements are handled by our team of EDI experts. We take care of EDI mapping, Trading Partner configuration, Standards maintenance, XML/CSV/TXT translation etc.

For more information Download our EDI2XML Translation Service Pricing Package here 

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4 Challenges of EDI and Drop-Ship in eCommerce


This post was updated to reflect current trends and information.

EDI integration projects


The term “drop-ship” has been used quite a lot in recent years by retailers and manufacturers alike. This supply chain management method looks to be gaining in popularity going into 2019 and will likely be in high demand for years to come as well.

Let me first explain the meaning of drop shipping and how it has become so popular…

What is Drop Shipping?

“Drop-ship” is a fulfillment method where a merchant does not carry any inventory on hand. Instead they sell products to consumers via an online store (eCommerce), send the customers’ orders to the manufacturer and have the manufacturer ship the goods directly to the customer. The customer will never know the difference since they pay the merchant and receive their goods in a box with the merchant’s labels. This method eliminates the need for the merchant to handle the goods.

The Rise of Drop-Ship Popularity

Due to the fast evolution of eCommerce, coupled with the continuous challenges that businesses face to reduce costs and increase profitability, the drop-ship method is in high in demand by major retailers. You’ll find that eCommerce giants like Amazon.com, Costco.com, Cabelas.com, Sears.com and others, are increasing the pressure on their supply chain to adopt the drop-ship concept. Of course, they also require their business partners to comply with their EDI requirements and specs for a full automation of the entire sales cycle.

The Complexity behind Drop Shipping

If we take a behind-the-scenes look at drop shipping from 2 perspectives, from the eCommerce retailer, like Amazon or Cabela’s, and from the manufacturer of goods, we’ll find the simplicities and complexities behind each process.

From the perspective of the eCommerce retailer, the drop-ship method allows them to eliminate the need to carry any inventory and to ship their goods. Their process is rather simple, profitable and quick. All they need to do is sell products online and ensure that their partnered manufacturers are EDI and drop-ship ready. Once they sell products from their eCommerce site, they will send the orders via EDI to their manufacturer and the manufacturer takes it from there.

From the perspective of the manufacturer, we’ll find some of the complexities. However, if they are setup correctly from the get-go, then it becomes rather simple and quick. In this case, the drop-shipper (manufacturer or distributer) is entirely in charge of the fulfillment of all incoming eCommerce orders (from the retailer). They need to process the sale all the while complying with the retailer’s business specifications such as EDI. Let’s go over the top 4 challenges a manufacturer must overcome during a drop-ship EDI implementation;

Top 4 Challenges the Drop-Shipper Might Face

If you are a manufacturer and have recently partnered with an eCommerce retailer to sell your products, then you might already know that they will require you to drop ship and automate your sales process through EDI integration. I have listed below the top 4 challenges you might face as a drop shipper;

1.    Ability to submit accurate inventory feed (846) to the eCommerce retailer

When starting a new business relationship with an eCommerce retailer based on the drop-ship method, the first step will be to feed inventory & per-item stock statuses to the retailer in a timely manner. This inventory inquiry/advice document is called EDI 846. Major retailers such as Amazon.com, Cabelas.com, Costco.com and Wal-Mart.com require their Trading Partners to send them an 846 document at least twice a day so that their online store can properly show only available products, based on inventory available to ship. Most of the time, companies either don’t have an accurate inventory system or their stock status is not properly maintained, which can be a great challenge to overcome. Even if companies have accurate inventory statuses, many of their management software systems, even reputable and expensive systems such as JDE, do not have built-in capabilities to send the 846-inventory status in X12 format, as per the requirements of the retailers.

2.    Ability to receive and process EDI orders (850)

Another challenge comes in the form of receiving EDI purchase orders (document 850). Many companies struggle with the capability to receive EDI orders, process them and integrate them quickly into their management system before it is sent to the pick/pack/ship process down the line in the supply chain. Most software systems are still missing this integration capability and require end users to manually key-in orders received in EDI x12 format, to then be able to process and ship. This is a great challenge for many manufacturing and distribution businesses. Dealing with eCommerce Stores, orders are continuously coming in, at all hours, in high volumes. The client (retailer) typically expects the manufacturers to ship within 24 to 48 hours (at the latest!). Moreover, eCommerce retailers are expecting to receive a P/O acknowledgment (document 855) via EDI. Therefore, it’s extremely critical that the drop shipper is equipped with a fully integrated software solution where EDI orders can automatically come through in real-time, so that they are quickly processed.

3.    Ability to fulfill orders within a very short period of time

As previously mentioned, eCommerce retailers expect their partners to ship goods to the end-consumer within a very short time frame (24 to 48 hours). They expect them to package the products, print customized picking/packing slips to send with the goods and complete the shipping process in a very quick manner. In case of failure to comply, there is a risk the vendor will be eliminated from the program. At the logistics level, an important challenge is to have a management system and required resources to process orders, pick, pack and ship in the required time frame. Efficiency in this case is imperative since time is money.

4.    Ability to electronically submit Ship Notices (856) & Invoices (810)

Two other EDI x12 documents are sent out to the eCommerce retailer by the drop shipper; the Advance Ship Notice or ASN (document 856) and of course an invoice (document 810). Most companies don’t currently have the capability to turn those business documents into an x12 EDI format and submit to the Trading Partner, straight from their management system.

Overcoming Drop-Ship Challenges

Our team’s experience with EDI drop-ship has allowed us to overcome the above challenges in an efficient and timely manner. Since every project varies, it’s important to do the following;

  • Surround yourself with experts in EDI who have the experience in dealing with drop-ship projects. It’s important to have enough knowledge and expertise in these methods prior to beginning any EDI drop-ship project. It’s important to get organized internally before any major project.
  • Ask an EDI Provider, who offers flexible and affordable EDI & IT services, to help you streamline your processes and advise you on best practices.
  • Opt for a full EDI integration with your current management software solution, if possible. Of course, such an option is not always possible or provided by your Software provider but if it is, it’s our recommendation to go ahead with this since it will eliminate chargebacks and increase efficiency in your EDI projects so you are best capable of complying with your Trading Partners’ demands. Don’t forget, partner demands and specs can change at any moment. It’s best to ensure you can handle changes at a moment’s notice. (Flexibility is the way to go!)

If you’re looking to complete an EDI Drop-Ship project, contact us today. We’ve got the experts and the EDI2XML service to get you drop-ship ready. Contact us today for your FREE consultation to evaluate your EDI project.

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