This post was updated to reflect current trends and information.
EDI (or Electronic Data Interchange), has been part of business for long time; However, questions about its functioning, pros and cons are still not clear for new EDI users and those who have been using EDI for years in their business.
To help better understand EDI, we created this e-book “Electronic Data Interchange: Key Information You Need to Know”, where you find answers to most of the frequent questions like What is EDI?Benefits of EDI, EDI communication (EDI-VAN) and (EDI -INT) and much more.
It was built for beginners and those who have strong EDI technical knowledge. We are certain you will get important information out of this eBook, that is certainly useful to your EDI projects.
https://www.edi2xml.com/wp-content/uploads/2019/01/Free-edi-gude.png3501024Tatyana Vandichhttps://www.edi2xml.com/wp-content/uploads/2024/08/edi2xml.com-EDI2XML-company-logo.pngTatyana Vandich2019-01-01 12:09:152020-06-25 14:02:39Electronic Data Interchange: Key Information You Need to Know
This post was updated to reflect current trends and information.
Overview of EDI
EDI (Electronic Data Interchange) – standardized message formats for the transfer of commercial information between business partners. The two most common documents exchanged using EDI are purchase orders (EDI 850) and invoices (EDI 810). To transfer the EDI data, companies are often using the Internet or VANs (Value Added Networks). EDIFACT is the most popular EDI standard in Europe and ANSI X12 is in active use in North America. In the global supply chain, the GS1 EDI set of standards are predominant. In brief, EDI allows companies to communicate business and commercial information quickly and efficiently.
XML (Extensible Markup Language) is a markup language that allows to standardize the data, in the form of text easily understood by users and computers. In other words, XML is a simple and flexible text format designed to meet the needs of electronic publishing.
XML has two main tasks:
Provide a description of the data structure.
Provide a common syntax for all other specifications.
Thus, XML does not specify how to display a document, it only describes its structure and content.
XML created in 1996 by W3C (World Wide Web Consortium); it is a subclass of the Standard Generalized Markup Language (SGML). XML was conceived to be a flexible format, at the same time as a formal metalanguage for use on the Internet. One of XML’s primary applications was in handling B2B and B2C data interchange.
From the beginning of XML implementation, its advantages over EDI were obvious. Simple and self-descriptive, structured, support of multi-lingual and Unicode (very important for international EDI transaction).
What is EDI2XML?
EDI2XML is a technology to transform incoming EDI documents (X12 EDI files) into XML. At the same time, converting an XML document to EDI X12 format. This process of converting edi to xml is due to the fact that our company took the time to create predefined xml schemas (xsd files) that respond to the business needs of almost 100 % of EDI consumers.
The fact that we have over 20 years of experience in converting X12 EDI to XML gives us a competitive advantage over other EDI developers. We have already successfully implemented this converter in many companies of different sizes from various industries. We also helped IT consultants use EDI2XML in their EDI integration projects.
EDI2XML as a Service is our popular translation and communication service. All conversions of EDI files are done on our end, leaving customers with no on-site installation of software or hardware and an EDI project that is on time and within budget.
If you would like to know more about the plans offered for EDI2XML (Free EDI Consultation), or would like to see it in action (live Demo), please do not hesitate to contact us.
https://www.edi2xml.com/wp-content/uploads/2017/12/FI-EDI-XML.png3501024Tatyana Vandichhttps://www.edi2xml.com/wp-content/uploads/2024/08/edi2xml.com-EDI2XML-company-logo.pngTatyana Vandich2017-12-27 14:00:182020-04-09 15:53:10EDI converter: Benefits of converting between EDI and XML
This post was updated to reflect current trends and information.
What is EDI 846 Document?
One of the most important electronic EDI documents heavily exchanged between trading partners is the 846 X12 document. It is important mainly due to the evolution of the drop-shipping business that saw a great advancement in the last few years, because of eCommerce and online sales.
The EDI 846 document, also known as the Inventory Inquiry/Advice transaction set, is used in Electronic Data Interchange (EDI) to provide inventory information between trading partners in the context of e-commerce. This transaction set is commonly employed in the retail industry to facilitate the exchange of inventory details.
This EDI document originates from the paper-based “inventory inquiry and advice”. Basically, it is a notification sent by the manufacturer to the seller, advising about stock status and availability. It can also include pricing information. In other words, this EDI message is to exchange information about stock levels and the availability of goods.
For e-commerce, it is very important to have up-to-date information about the availability of goods. That is why one of the major EDI requirements for Amazon, is the capability of the supplier to transmit an EDI 846 Inventory Inquiry message. This is not only a requirement for Amazon exclusively; Other leading retailers such as Cabela’s, Wal-Mart, Costco … all have the same EDI requirement, to be able to feed their e-commerce platform with quality inventory status information.
The EDI 846 document can be sent to business partners, as many times as necessary. It can be 2-3 times a week, up to several times a day; each retailer has his own requirements. EDI 846 Inventory Inquiry/Advice permits suppliers to provide trading partners with information about their products without forcing them to make a purchase. In addition, the EDI 846 transaction is often used to notify business partners about the availability of goods at discounted prices.
EDI 846 Inventory Inquiry and Advice Usage
The other obvious question about 846: who uses this EDI 846 message other than Amazon and the major eCommerce retailers? The truth is that not only eCommerce retailers can use this EDI transaction and exchange 846 documents. All trading partners can agree to use it to exchange inventory availability and stock level. Some examples:
sellers to provide inventory information to a potential customer
seller’s representatives to supply the seller with inventory information
one seller’s location to give another location inventory information
seller to demand the availability of inventory
Diverse Applications of the EDI 846 Transaction Set in Varied Industries and Business Scenarios
The EDI 846 Inventory Inquiry/Advice transaction, has varied usage across different industries and business scenarios. Its primary purpose is to provide detailed information about the current inventory levels of a product at a specific location, typically a warehouse or distribution center. This information is crucial for effective supply chain management and helps trading partners optimize their inventory levels and order fulfillment processes.
Here are some of the varied uses of EDI 846:
Inventory Replenishment: Retailers and suppliers use the EDI 846 to communicate current inventory levels and forecast demand. This helps in making timely decisions regarding inventory replenishment and avoiding stockouts.
Order Planning: The information exchanged through EDI 846 aids in order planning by providing insights into product availability. Retailers can adjust their order quantities based on the actual inventory levels at the supplier’s end.
Demand Forecasting: By analyzing historical inventory data provided through EDI 846, businesses can better forecast future demand for products. This can lead to more accurate production and procurement planning.
Vendor-Managed Inventory (VMI): In VMI arrangements, suppliers use EDI 846 to monitor and manage the inventory levels at their customers’ locations. This collaborative approach helps in maintaining optimal stock levels and reducing carrying costs.
Supply Chain Optimization: The use of EDI 846 contributes to overall supply chain optimization by enhancing communication and collaboration between trading partners. It streamlines the flow of information related to inventory, reducing manual processes and improving efficiency.
E-commerce Integration: In the context of e-commerce, EDI 846 plays a role in updating online product availability and supporting real-time inventory visibility for customers. This is important for online retailers and marketplaces to provide accurate information to customers about product availability.
Overall, the varied usage of EDI 846 reflects its importance in facilitating efficient inventory management, enhancing collaboration between trading partners, and improving the overall supply chain performance.
What Information Does the EDI 846 Document Transmit?
In the EDI 846 transmission, inventory location identification, item, and part description, and quantity are the basic information included in almost any EDI 846 document; however, additional information can be added such as:
Quantity forecasted
Quantity sold already
Quantity available in stock
Pricing information
With EDI 846 online stores optimize their deliveries. They do not need to enter data manually into their internal systems, such as ERP or back-office of their stores. It gives an accurate information to online shoppers about the availability of stock, in a real-time mode. Moreover, it does reduce the administration fees and expenses to process orders and items bought by consumers, while having no stock.
What are the Benefits of Using the EDI X12 846 Inventory Inquiry/Advice?
The EDI X12 846 Inventory Inquiry/Advice transaction set provides several benefits for businesses that use it. Here are some of the key benefits:
1. Improved inventory management: The 846 transaction set provides real-time updates on inventory levels and enables businesses to quickly identify inventory shortages or excesses. This helps businesses to optimize their inventory levels, reduce carrying costs, and avoid stockouts.
2. Increased efficiency: The use of EDI eliminates the need for manual data entry and reduces the risk of errors. This can result in faster order processing times, reduced labor costs, and improved accuracy.
3. Enhanced collaboration: The 846 transaction set allows for seamless communication between trading partners and provides a standardized format for inventory information. This makes it easier for businesses to collaborate with their partners and share inventory data consistently and efficiently.
4. Better decision-making: By having access to real-time inventory data, businesses can make better decisions about when to reorder products, how much to order, and where to allocate inventory. This can help businesses to reduce inventory holding costs, improve customer satisfaction, and increase profitability.
5. Competitive advantage: By using the 846 transaction set, businesses can differentiate themselves from their competitors by offering faster, more accurate inventory information to their customers. This can help businesses to attract and retain customers, increase customer loyalty, and gain a competitive edge in the marketplace.
For more information about how edi2xml fully managed services or web service can help you set up your EDI 846 Inventory Inquiry/Advice with your trading partners, please contact us.
https://www.edi2xml.com/wp-content/uploads/2017/11/EDI-846.png6751200Tatyana Vandichhttps://www.edi2xml.com/wp-content/uploads/2024/08/edi2xml.com-EDI2XML-company-logo.pngTatyana Vandich2017-11-29 13:33:372024-10-09 14:53:30What is EDI 846 document?
This post was updated to reflect current trends and information.
EDI Communication is one of the best ways to exchange important business documents with Trading Partners. Documents such as Purchase Orders, Invoices and ASNs can be safely exchanged electronically with business partners, like retailers, in a matter of seconds. In many cases however, Small and Medium Enterprises do not have the budget for some of these EDI communication solutions out there and do not have any in-house staff experienced with EDI exchange. What should these businesses do?
EDI Solution as a Service for SMEs
After over a decade of working hand in hand with Small and Medium Businesses, we’ve come up with a solution. Our EDI specialists realized that it might not be realistic to have SMEs hire in-house EDI experts or purchase expensive EDI communication solutions on the market. This is when our experienced team designed and developed a tool that can be implemented as a Service – no need for any setup or equipment on premises – called EDI2XML as a Service. Here’s how it works:
We communicate with your EDI Trading Partner in order to pick up any incoming EDI documents from their mailbox
We convert all EDI documents into XML or CSV format (whichever works best to be integrated into your management system (ERP suite, CRM system, etc.))
We push all XML documents to you, to be integrated into your system
You will be notified every time EDI documents are sent and received
The opposite process (from XML to EDI) works for outgoing documents.
Converting from unreadable formats like EDI x12 or EDIFACT (for those companies in Europe) to XML or CSV, allows for easy integration into ERP suits or CRM systems out on the market. On top of this, XML format is easy to read by any businessperson. Our goal was and continues to be to simplify the EDI communication process for Small and Medium Enterprises that are looking to increase efficiency. It’s time SMEs eliminated manual data entry (or human intervention) and enjoyed a smooth, continuous order processing flow.
https://www.edi2xml.com/wp-content/uploads/2015/07/Integrating-EDI.png3501024Tatyana Vandichhttps://www.edi2xml.com/wp-content/uploads/2024/08/edi2xml.com-EDI2XML-company-logo.pngTatyana Vandich2015-07-27 15:47:222019-09-24 10:12:40Integrating EDI into your Management System
This post was updated to reflect current trends and information.
As soon as there is a requirement for EDI implementation and integration, company executives, along with their IT personnel, begin by determining how they will comply with their EDI business partner to exchange EDI documents. They will need to acquire EDI translation software, initiate testing, and so on. This however is a complex and lengthy process, which many executives do not look forward to. Difficult questions arise, such as, “Shall we outsource to an EDI service provider? Shall we do it ourselves “on-premises”? Shall we do the translation and conversion of EDI “as a service” using an outside provider?
Which of these options is the best and most affordable way to go?”
As you already know, EDI(Electronic Data Interchange) is the standard to exchange business data between business partners in a very proprietary EDI format. Your business partner would send data such as a P/O (EDI 850), an Inventory Inquiry/Advice (EDI 846), or any other EDI transaction, based on his own terminology of business parameters. It is then up to the “receiving party” to take the sender’s EDI data and information, translate it into a well-understood format, which the receiver’s system will be able to use and process. With EDI2XML, we translate the EDI format of incoming documents to a much simpler, more structured XML format so humans, namely the IT developers, and systems can easily work with.
Normally, translating incoming EDI documents “on-premises” requires a lot of parameters before launching such a project. As a starting point, a good level of expertise in EDI, EDI communication, and systems integration is required. Integrators should also have a fairly advanced knowledge and expertise in how the company’s software system (ERP, CRM, etc.) works and how to integrate and push data into that system.
While the ability to integrate with the most commonly used ERP and CRM systems does not create any major challenge for experienced IT developers, the main problem is having a high level of proficiency in EDI implementation.
Another major task for the “on-premises” translation is, in most cases, the need for the company to invest on hardware, software licenses, and services (internet, dedicated IP, VAN) to be able to exchange EDIdocuments with their business partner.
With the emergence of cloud-based ITservices and the affordable plans offered by service providers, the ability to translate EDI “as a service” in the “cloud” and deliver the end result to the ultimate destination, has become a more productive approach.
Typically, an EDI service provider offering EDI translation “as a service” will:
– Act as an intermediary layer between the EDI sender and EDI receiver
– Receives the EDI incoming document (i.e. 850, 860, 864,…) on behalf of the “ultimate receiver”
– Extract the data received in EDI format and translate it into a standard format (i.e. XML)
– Transmit the XML data to its ultimate destination for Integration OR integrate directly into the software system of the ultimate receiver.
To send EDI documentsout, the EDI service provider will be acting also as an intermediary hub between business partners and do the following:
– Receive data in XML format to be sent to the business partner from the sender through FTP or sFTP
– Translate data received and convert from XML to EDI format
– Transmit that EDI data to the destination
Dive into the world of EDI (Electronic Data Interchange) with our insightful video explanation.Explore the video
Most companies usually lean towards the “on-premises” option when they have “internal policies” and security measures in place or are a large enterprise with their own team of IT experts.
The “as a service” option is much more advantageous for small to mid-sized enterprises, where they may have a lower number of exchanged EDI transactions.
As the “as a service” option’s low initial investment and quick deployment are attractive features, every situation is different and should be dealt with on a case-by-case basis with one of our EDI experts prior to making a final decision.
This post was updated to reflect current trends and information.
Why convert EDI to XML?
In this blog post, I will explain why our team decided to convert EDI to XML as well as the advantages and benefits of using this conversion from EDI to XML. On many occasions, EDI consultants, project managers and EDI developers and implementers brought up the following questions:
What are the benefits of having an EDI X12 file format converted to XML?
Why do we need to convert from EDIto XML and not to a database, csv or other file formats directly?
Quick review of EDI2XML
As you might already know, EDI2XML is a technology to convert X12 EDI to XML for incoming EDI documents. At the same time, the engine is intelligent and capable of converting an XML document to an EDI X12 format. This process of turning an X12 EDI file to XML happens because we have taken the time to build pre-defined xml schemas (xsd files) that respond to the business needs of 99.99% of EDI consumers.
EDI developers and integrators are able to use any loop, node or element they need to push to their database for incoming EDI documents. While for outgoing EDI documents in XML format, they are able to pick and choose the node, or EDI element they want to transmit out, fill it in, and send over to EDI2XML engine in order to create the EDI file in X12 format.
In the beginning stages of development, we established a list of objectives and a list of possible formats we can use. This was essential, as we needed to evaluate which file format would be best to use as a destination format for incoming EDI documents and outgoing EDI documents.
Objectives to convert EDI
We wanted our EDI conversion technology to respond to the following criteria, as much as possible:
Cross-platform: could be triggered on multiple platforms (at least Windows and Linux)
Scalable: easily upgradable without the need for heavy work and programming to add a new document or process
Portable: could run without any limitation on database, file format or operating system
Simple to operate and launch: at the time, we wanted to have the solution as simple as possible so no need to have a very extensive EDI expertise and knowledge in order to work with our EDI conversion tool.
Options for EDI conversion
Below is the list of formats we had put together when we started the R&D, during our brainstorming sessions prior to developing the engine to convert EDI.
Convert EDI to Database: this was the first option we had in mind since it was simple and easy to deploy. However, we went into the limitations of portability and compatibility as well as the choice of the Database. What database is the most portable?
Convert EDI to CSV: option #2 was also on the table early on, since the csv format is commonly known and heavily used. However, because of the quality of data that anyone might receive within an EDI transmission (carriage return, line feed, special characters…), which might cause the data to be a little less “sanitized”, we opted out of this option and eliminated this format from our list.
XML: this was the last option we had on the table. We decided that this would be the best choice due to its flexibility, good structure and ease of use. It responded extremely well to all our technological objectives and more.
There are many reasons why we selected the XML format as a destination to translate EDI, over other means. Following are some of these reasons:
Simplicity and self-descriptive: data encoded in XML is easy to read and understand by humans (i.e. EDI developers,) and it was becoming easier to process by computers
XML format is standardized:XML is a W3C standard and it is endorsed by software industry market leaders
XML is structured: No fixed tags; it represents perfectly the hierarchical structure of an EDI file.<
Support of multi-lingual and Unicode: very important for exchanging EDI documents at the international level
Rapid adoption by programmers and developers: since the use of XML was on the rise, converting EDI to XML was a good decision. Nowadays, it is very rare to find a developer or a consultant who does not work with XML
Having the ability to convert X12 EDI to XML gave us a competitive advantage over other developers involved in EDI projects. We have already implemented this converter in many businesses as well as helped IT consultants leverage EDI2XML in their EDI integration projects.
If you would like to know more about the plans offered for EDI2XML (Free Consultation), or would like to see it in action (live Demo), please do not hesitate to contact us.
https://www.edi2xml.com/wp-content/uploads/2024/08/edi2xml.com-EDI2XML-company-logo.png00Pierre Namroudhttps://www.edi2xml.com/wp-content/uploads/2024/08/edi2xml.com-EDI2XML-company-logo.pngPierre Namroud2014-01-06 14:30:552020-02-27 10:53:57Convert EDI to XML: The EDI2XML Way
EDI (or Electronic data interchange) is the electronic file format used to exchange business transactions between trading partners. ANSI X12 is the most commonly used format of EDI in North America in the retail, manufacturing and healthcare industries.
EDI2XML is a mapping tool, capable of converting EDI files to XML. “Out of the box” EDI2XML translates EDI documents (i.e. 850, 860, 820…) into XML format that is readable by people and systems. It is capable of translating an XML format into an EDI format (i.e. 810,856,..). Basically, EDI2XML is an EDI to XML converter; it is also an XML to EDI converter.
Streamline and simplify EDI projects, and cut EDI mapping software costs by 75 %.
Increase your Return on investment on EDI integration projects, by eliminating the need for complex EDI systems, and expensive EDI software that takes weeks and months to setup and configure.
Increase efficiency of your developers and EDI integrators, by providing them with a great EDI translation software, without the need of extensive EDI expertise. “Out of the box”, the edi2xml engine provides an easy to read EDI document in a user friendly XML format which is very simple to integrate into any business software application.
EDI2XML converts EDI to XML. The same engine is intelligent enough to process XML and convert to EDI. Both engines, are bundled together and offered under the SAAS model (software as a service), where you pay per EDI docmeunt, per trading partner and per year. EDI2XML is the EDI translation software as a service that can help you get started with your EDI integration projects at a very low initial capital investment.
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What are the benefits of having an EDI X12 file format converted to XML? 
