EDI implementation involves setting up electronic data interchange systems to automate data exchange, improve accuracy, and facilitate communication.

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All You Need to Know About Value-Added Network (VAN)

What is a Value-Added Network (VAN)?

A Value-Added Network (VAN) is a third-party service provider that enables companies to exchange business-to-business (B2B) electronic transactions (EDI), such as purchase orders and invoices, with their trading partners.

In simple terms, a VAN acts as a middleman between businesses and ensures that the data exchanged between the parties, is transmitted securely and accurately.

In addition to basic transmission services, VANs may also offer value-added services, such as translation between different data formats, data mapping, and data validation. Moreover, VANs often provide security features, such as encryption and digital signatures, to ensure the confidentiality and integrity of the data being transmitted.

VANs are particularly useful for businesses that have numerous trading partners and need to exchange a large volume of electronic documents. By using a VAN, businesses can reduce the complexity of managing multiple connections to their trading partners, as well as reduce the costs associated with setting up and maintaining their own EDI infrastructure.

Dive into the world of EDI (Electronic Data Interchange) with our insightful video explanation.

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The History of VAN

VANs have been around since the early 1970s, when they were first used to connect large corporations with their suppliers and customers. These early VANs were typically owned and operated by telecommunication companies, such as AT&T and MCI.

Over time, the industry evolved to include third-party VAN providers, which offered a wider range of value-added services to businesses. Today, VANs are an essential part of the global supply chain, facilitating the exchange of electronic documents between companies in different industries and countries.

How VANs Work

VANs allow companies to exchange EDI documents and other data electronically.

Here’s a simplified step-by-step breakdown of how a business partner exchanges EDI via a VAN:

Let’s look at a simple example: Two business partners – partner A and partner B – want to exchange EDI messages via a value-added network (VAN).

– Partner A needs to purchase something from Partner B, so he will send a Purchase Order (PO) to Partner B and Partner B will send back an Invoice.

– Partner A has an ISA Qualifier/ID: 12/123456789 and owns a mailbox at VAN Provider “X”, which is their chosen VAN. Within their mailbox, there can be two sub-folders: “in” and “out”.

– Partner B has an ISA Qualifier/ID of 12/987654321 and they own a mailbox at VAN Provider “Y”. Within their mailbox, there are also two sub-folders: “in” and “out”.

– When partner A needs to place an order, he creates an electronic document in X12 format (such as purchase order P/O – EDI 850) that needs to be sent to Partner B.

– Partner A connects to the VAN using a secure login, and uploads the EDI X12 document into their own mailbox at VAN Provider “X”, in the “out” sub-folder. The PO message will contain the ISA segment, which looks like the following:

ISA*00*          *00*          *12*123456789   *12*987654321     *170526*1121*|*00403*100000000*0*P*>~

– The VAN “X” processes the document, checking it for errors and ensuring that it meets the agreed-upon data formatting standards.

– The VAN reads the EDI message envelop (ISA segment above), and finds to whom it is destined to (in this example to *12*987654321). They have a conversion table where they will lookup this address, to find out it is at VAN “Y”. They will connect to VAN “Y” either via a direct connection or through a partner VAN network, then connect to Partner B’s mailbox at the address specified and drop the message in the “in” sub-folder.

– Partner B can then connect to their own mailbox, navigate to the “in” sub-folder, and pick up the P/O to process it.

The same process works in the opposite direction for an incoming message. In this scenario, the envelop looks like:

ISA*00*          *00*          12*987654321    **12*123456789   *170526*1121*|*00403*100000000*0*P*>~

It’s important to note that regardless of how many clients each business Partner has or whether they use different VANs, each partner only needs to connect to their own mailbox to pick up or deliver any EDI message.

The VAN will handle the delivery to the destination mailbox. Interconnectivity between VANs is standard practice, so partners generally do not need to have mailboxes on multiple VANs. Partners should inquire with their VAN to determine if there are any VANs they cannot connect to, but this is a rare occurrence.

The VAN that a partner joins will connect to other VANs where their suppliers are located to deliver/pick up messages.

Throughout this process, the VAN may provide additional services such as message tracking, error handling, and notification of message delivery. These additional services help to ensure that messages are transmitted securely and accurately, and that any issues are resolved quickly.

What Are the Types of Value-Added Networks (VANs)?

Value-Added Networks (VANs) come in different types, with the most common being one-to-one, many-to-many, and one-to-many. Businesses choose the type of VAN that integrates best with their trading partners, data requirements, transaction volumes, and industry.

A one-to-one VAN (Value-Added Network)

A one-to-one VAN (Value-Added Network) is a type of electronic data interchange (EDI) network where two trading partners or businesses use a single VAN to exchange EDI messages and documents directly with each other.

In a one-to-one VAN, the VAN acts as a facilitator, providing a secure and reliable platform for businesses to transmit their EDI transactions without the need for establishing and maintaining multiple individual connections. This simplifies the EDI process, reducing the complexity and cost associated with managing multiple connections and data transfer protocols.

One-to-one VANs are often used by companies with high transaction volumes and a need for frequent and rapid exchange of information, such as those in the retail, healthcare, and manufacturing industries. By using a one-to-one VAN, these companies can streamline their supply chain operations, improve efficiency, and reduce errors and delays in the order fulfillment process

Many-to-Many VAN (Value-Added Network)

A many-to-many VAN (Value-Added Network) is a type of electronic data interchange (EDI) network where multiple trading partners or businesses can exchange EDI messages and documents with each other through a shared VAN.

In a many-to-many VAN, the VAN acts as a central hub or intermediary, allowing businesses to connect with each other and exchange EDI transactions in a secure and standardized way.

Many-to-many VANs are particularly useful for businesses with complex supply chains involving multiple trading partners, as they allow for seamless integration and communication between different systems and platforms. They are also widely used in industries such as healthcare, retail, and finance, where data privacy and security are critical considerations.

Overall, many-to-many VANs provide a scalable and flexible solution for businesses to manage their EDI transactions, enabling them to streamline their supply chain operations, reduce costs, and improve their overall efficiency and competitiveness.

One-to-Many VAN

A one-to-many VAN (Value-Added Network) is a type of electronic data interchange (EDI) network where a single business or trading partner uses a VAN to communicate with multiple other trading partners.

One-to-many VANs are particularly useful for businesses that need to communicate with multiple suppliers or customers, as they provide a standardized and secure platform for exchanging data and messages. They are also widely used in industries such as retail, manufacturing, and healthcare, where frequent and rapid communication with trading partners is critical to the supply chain.

One-to-many VANs provide a cost-effective and efficient solution for businesses to manage their EDI transactions, enabling them to streamline their supply chain operations, reduce errors and delays, and improve their overall competitiveness.

Which Companies Use the Value Added Network (VAN)?

Many companies across different industries still use Value Added Networks (VANs) to exchange business-to-business (B2B) electronic transactions (EDI X12/EDIFACT) with their trading partners. Here are some examples of companies that use VANs:

General Motors: The automobile manufacturer uses a VAN to exchange electronic transactions with its suppliers.

Kaiser Permanente: The healthcare provider uses a VAN to exchange electronic healthcare transactions with its partners.

Procter & Gamble: The consumer goods company uses a VAN to exchange electronic transactions with its suppliers.

FedEx: The logistics company uses a VAN to exchange electronic transactions with its partners.

These are just a few examples, but many other companies in various industries use VANs to exchange EDI with their trading partners.

Choosing a VAN Provider

When choosing a VAN provider, businesses should consider a variety of factors, including the provider’s experience, pricing, reliability, and range of value-added services. It’s also important to choose a provider that offers a high level of security for data exchange, including encryption and digital signatures. Businesses should also consider the provider’s ability to integrate with their existing systems and processes, as well as their customer support and training resources.

How EDI2XML Can Help

Understanding the importance of a Value Added Network (VAN) is crucial for businesses looking to streamline their EDI processes. Choosing the right VAN provider is essential to ensure that your EDI transactions are secure, reliable, and efficient.

As a trusted EDI supplier for over 20 years, we have the expertise and experience to help you navigate any EDI issues you may face. We are committed to providing the highest level of service to our clients and offer a free 1st consultation to help you get started.

Contact us today to learn more about how we can help your business succeed in the world of EDI.
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All You Need to Know About EDI X12 404 Rail Carrier Shipment Information

Electronic Data Interchange (EDI) has revolutionized the way businesses exchange information and collaborate with their business partners. EDI 404 (X12) – Rail Carrier Shipment Information is a transaction set that enables rail carriers to exchange shipment information with their trading partners.

In this article, we will explore EDI X12 404 Rail Carrier Shipment Information in detail, including its purpose, format, segments, and benefits.

What is an EDI X12 404 Rail Carrier Shipment Information?

The Rail Carrier Shipment Information EDI 404 is an electronic document or transaction set that allows rail carriers and their trading partners to exchange shipment information. This transaction set is part of the Electronic Data Interchange (EDI) X12 standard.

EDI 404 is a transaction set that is specifically designed for rail transportation companies. It is not used in other modes of transportation, such as trucking or air transportation.

Purpose of EDI 404 (X12) Rail Carrier Shipment Information

The primary purpose of EDI 404 is to facilitate the exchange of rail carrier shipment information between trading partners. EDI 404 provide detailed information about a shipment that is being transported by rail, including its origin, destination, routing, and other related details.

According to X12, chartered by the American National Standards Institute the EDI 404 transaction set can be used to transmit rail carrier bill of lading information to the railroad.

This is the initial shipment order between the shipper and the rail carrier and can be used as an equipment release notice and/or legal bill of lading.

The EDI 404 document is particularly useful for companies that need to track and manage their shipments efficiently.

By receiving shipment information electronically in a standardized format, companies can automate many of their business processes and reduce manual data entry errors. This can help to improve efficiency, reduce costs, and increase overall productivity.

EDI 404 (X12) Segments and Data Elements

The EDI X12 404 Rail Carrier Shipment Information transaction set transmits various data elements related to a rail shipment. The transaction set follows a standard format that includes segments, data elements, and composite data structures. The segments are the building blocks of the transaction set and contain specific information about the shipment.

The data elements provide additional details within each segment, while the composite data structures combine multiple data elements into a single data element for easier processing.

Here are some examples of the data that can be transmitted through the EDI X12 404 transaction set according to BNSF 404 Implementation Guideline.

Segments and Data Elements:
  • ISA Interchange Control Header
  • GS Beginning Segment.
  • ST Transaction Set Header
  • ZC1 Beginning Segment for Data Correction or Change
  • BX General Shipment Information
  • BNX Rail Shipment Information
  • M3 Release Information
  • N9 Reference Number
  • CM Cargo Manifest.
  • M1 Insurance Details.
  • DTM Date/Time Reference
  • N7 Equipment Details (N7 Loop)
  • EM Equipment Characteristics
  • VC Motor Vehicle Control (N7/VC Loop)
  • N1 Name (N7/VC/N1 Loop)
  • N3 Address Information.
  • N4 Geographic Information.
  • H3 Special Handling Instructions
  • M7 Seal Numbers
  • N5 Car Ordered
  • IC Intermodal Chassis Equipment
  • IM Intermodal Information
  • M12 In-Bond Identifying Information
  • EI Empty Car Disposition – Pended Destination Consignee (E1 Loop)
  • E4 Empty Car Disposition – Pended Destination City
  • E5 Empty Car Disposition – Pending Destination Route
  • PI Price Authority Identification
  • GA Canadian Grain Information
  • REF Reference Identification (REF Loop)
  • N10 Quantity and Description
  • N1 Name
  • N3 Address Information
  • N4 Geographical Information
  • NA Cross Reference Equipment
  • F9 Origin Station
  • D9 Destination Station
  • N1 Name (N1 Loop)
  • N2 Additional Name Information.
  • N3 Address Information
  • N4 Geographic Information
  • REF Reference Identification
  • PER Administrative Communications Contact
  • BL Billing Information
  • S1 Stop Off Name (S1 Loop)
  • S2 Stop Off Address
  • S9 Stop Off Station
  • N1 Name (S1/N1 Loop)
  • N2 Additional Name Information
  • N3 Address Information
  • N4 Geographic Location
  • PER Administrative Communications Contact
  • R2 Route Information
  • R9 Route Code
  • E1 Empty Car Disposition Pended Destination Consignee (E1 Loop)
  • E4 Empty Pended Destination Pended Destination City
  • E5 Empty Car Disposition Pended Destination Route
  • PI Price Authority Information
  • H3 Special Handling Instructions
  • PS Protective Service Instructions
  • LX Assigned Number (LX Loop)
  • L5 Descriptions, Marks,and Numbers
  • L0 Line Item, Quantity, and Weight (L0 Loop)
  • MEA Measurements
  • L1 Rate and Charges
  • PI Price Authority Information
  • X1 Export License
  • T1 Transit Inbound Origin (T1 Loop)
  • T2 Transit Inbound Lading
  • T3 Transit Inbound Route
  • T6 Transit Inbound Rates
  • T8 Free Form Transit Data
  • L3 Total Weight and Charges
  • LS Loop Header
  • LH1 Hazardous ID Information (LH1 Loop)
  • LH2 Hazardous Classification
  • LH3 Proper Shipping Name
  • LFH Free Form Haz Mat Information
  • LEP EPA Required Data
  • LH4 Canadian Hazardous Requirements
  • LHT Transborder Hazardous Requirements
  • LHR Haz Mat ID Reference Numbers
  • PER Administrative Communications Contact
  • LE Loop Trailer
  • PER Admin. Communication Contact (Haz Mat Shipments Only)
  • LH2 Hazardous Classification Information
  • LHR Haz Mat ID Reference Numbers (Haz Mat Shipments Only)
  • LH6 Hazardous Certification
  • XH Pro Forma B13 Information
  • X7 Customs Information
  • SE Transaction Set Trailer
  • GE Functional Group Trailer
  • IEA Interchange Control Trailer

It’s important to note that each rail carrier may have slightly different requirements for their EDI 404 transaction set. Therefore, it’s essential to use the implementation guideline provided by the specific rail carrier that you are working with to ensure that your data is properly formatted and transmitted.

Implementation Guideline will provide you with the specific data elements, segments, and codes that rail carriers require for the EDI 404 transaction set.

It can also provide guidance on the technical aspects of transmitting the data, such as the file format, transmission protocols, and testing procedures.

EDI 404 Rail Carrier Shipment Information Document Exchange Workflow

In order to use EDI X12 404, both the shipper and the carrier must have the necessary technology and systems in place to support the transaction set.

Here’s a possible workflow for the exchange of an EDI 404 Rail Carrier Shipment Information Document:

EDI 404 Preparation

The shipper (sender) prepares the shipment and creates an EDI 404 document with the relevant information, such as the shipper and consignee names and addresses, the description of the goods, the weight and dimensions, the origin and destination locations, and the carrier information. The document is formatted according to the EDI X12 standard and the specific requirements of the carrier using sender’s internal system or a third-party EDI services.

EDI 404 Transmission

There are several methods to transfer an EDI document to a business partner. Here are some of the most common methods:
  • Value-Added Network (VAN): This is a third-party network that acts as a middleman between trading partners to transmit EDI documents securely. The VAN providers charge a fee for their services.
  • AS2 (Applicability Statement 2): This is a popular protocol for transmitting EDI documents over the internet using encryption and digital certificates. AS2 is a secure and reliable method for EDI document exchange.
  • FTP (File Transfer Protocol): FTP is a standard protocol used to transfer files over the internet. EDI documents can be transmitted using FTP by configuring a server and client for file exchange.
  • Web-based EDI: (REST API) Some EDI providers offer web-based solutions that allow companies to exchange EDI documents through a web interface. This method allows you to quickly start exchanging EDI documents with your business partners.
  • Direct connection: EDI documents can be transmitted directly between two systems using a point-to-point connection. This method requires setting up a dedicated connection between the two systems.

EDI 404 Receive, Validation, and Acknowledgment

The carrier receives the EDI 404 document validates its syntax, structure, and processes it through their EDI system.

Once the receiver has successfully received and validated the EDI 404 document, they should send back an acknowledgment message (EDI 997 document) to the sender to confirm the receipt and acceptance of the EDI 404 document.

The acknowledgment may include a unique transaction ID, the date and time of receipt, and any relevant status codes or error messages. The sender may use this information to track the progress of the shipment and to resolve any issues that may arise.

EDI 404 Processing

The carrier processes the shipment based on the information provided in the EDI 404 document, such as scheduling the pickup, assigning a rail car, routing the shipment, and generating the necessary documents and labels.

The carrier may also update its internal systems and communicate with other parties involved in the shipment, such as the consignee, the customs authorities, or other carriers in case of intermodal transportation.

Specific EDI Documents for the Rail Industry

In addition to the EDI 404 discussed in this article, here are some of the most commonly used EDI X12 transaction sets in the railroad industry:

410 Rail Carrier Freight Details and Invoice: This transaction set is used to transmit billing and payment information related to rail transportation services.

417 Rail Carrier Waybill Interchange: This transaction set is used to exchange waybill information between rail carriers, including origin and destination locations, equipment requirements, and shipment details.

418 Rail Advance Interchange Consist: This transaction set is used to provide advance notice of railcar movements between rail carriers.

419 Advance Car Disposition: This transaction set is used to provide advance notice of railcar movements to car owners, lessees, or shippers.

422 Shipper’s Car Order: This transaction set is used by shippers to order railcars from the rail carrier.

423 Rail Industrial Switch List: This transaction set is used to provide information about railcar movements within an industrial facility.

424 Rail Carrier Services Settlement: This transaction set is used to provide settlement information for rail transportation services.

Note that this list is not exhaustive, and there may be other EDI X12 transaction sets used in the rail industry depending on the specific needs of the trading partners involved.

While the EDI transactions listed above are unique to rail transportation, there are other EDI transaction sets that are used in the transportation industry more broadly, such as EDI 204 (Motor Carrier Load Tender), EDI 210 (Motor Carrier Freight Details and Invoice), and EDI 214 (Transportation Carrier Shipment Status Message).

You can find out more information about EDI documents for transportation or other industries in the article EDI for Specific Industries.

Benefits of EDI/X12 404

EDI X12 404 offers several benefits to rail carriers and their trading partners. Some of the key benefits include:
  1. Improved Efficiency: By automating the exchange of shipment information, rail carriers can improve their operational efficiency and reduce errors and delays in the shipment process.
  2. Cost Savings: EDI X12 404 can help reduce costs associated with paper-based processes, such as printing, mailing, and storage.
  3. Enhanced Visibility: With EDI X12 404, rail carriers and their trading partners can gain real-time visibility into shipment status updates, equipment and routing details, and transportation charges.
  4. Faster Payments: EDI X12 404 can help accelerate the invoicing and payment process by providing accurate and timely information about transportation charges.

EDI X12 404 Sample File

This is an example of an EDI file from BNSF 404 Implementation Guideline “USING ASC X12 TRANSACTION SET 404 VERSION 004010 10/01/98”

Sample EDI/X12 404

Minimal data requirements for a carload bill of lading
  • GS*SR*CUSTOMERX*BNSF*20230101*1520*2315*X*004010
  • ST*404*4567
  • BX*00*R*PP**BNSF*L*B*N
  • BNX*A
  • M3*B*20230101*1520*CT
  • N9*RP*AWI233**20230101*1520*CT
  • N9*BM*HGP2684**20230101*1520*CT
  • N7*ATSF*111598*195320*N*******RR
  • F9** CHICAGO *IL
  • D9**BOSTON*MA
  • N1*CN*CUSTOMER X
  • N4*BOSTON*MA
  • N1*SH*ABC CUSTOMER
  • N4* BOSTON*MA
  • PER*NT*JEAN DUPONT*TE*098-765-4321
  • R2*BNSF*S****R
  • LX*1
  • L5*1* WALLBOARD *1301210*T
  • L0*1*******1*CLD
  • PI*CT*12345***BNSF*BNC
  • SE*21*2315
  • GE*1*2315
  1. GS*SR*CUSTOMERX*BNSF*20230101*1520*1315*X*004010 – This line contains the GS segment which is a functional group header. It identifies the sender (CUSTOMERX) and the receiver (BNSF), as well as the date and time (20230101 15:20) and the version of the EDI standard used (004010).
  2. ST*404*4567 – This line contains the ST segment which is a transaction set header. It identifies the type of document (404) and a unique control number (4567) assigned by the sender.
  3. BX*00*R*PP**BNSF*L*B*N -This line contains the BX segment which indicates the beginning of a transaction set. It specifies the version of the EDI standard used (00) and General Shipment Information, including the type of transaction (R for railroad) and the carrier (BNSF).
  4. BNX*A – This line contains the BNX segment which is used to identify and track the progress of the shipment.
  5. M3*B*20230101*1520*CT – This line contains the M3 segment which provides information about the shipment, including the date and time it was shipped (20230101 15:20) (CT for central time).
  6. N9*RP*AWI233**20230101*1520*CT – This line contains the N9 segment which identifies a reference number (AWI233) for the shipment and provides the date and time it was shipped (20230101 15:20)
  7. N9*BM*HGR2088**20230101*1520*CT – This line contains the N9 segment which identifies a reference number (HGR2088) BM – bill of lading number and provides the date and time it was shipped (20230101 15:20)
  8. N7*ATSF*111598*195320*N*******RR – This line contains the N7 segment which provides information about the equipment used to transport the shipment, including the the equipment number (111598), and the type of equipment (RR – for a railcar).
  9. F9**CHICAGO*IL – This line contains the F9 segment which provides information about the origin of the shipment, including the city and state (Chicago, Illinois)
  10. D9**BOSTON*MA – This line contains the D9 segment which provides information about the destination of the shipment, including the city and state (Boston, Massachusetts)
  11. N1*CN*CUSTOMER X– This line contains the N1 segment which identifies a party involved in the shipment (in this case, the consignee) and provides their name (CUSTOMER X).
  12. N4* BOSTON*MA – This line contains the N4 segment which provides information about the Geographic location of the consignee (in this case, Boston, Massachusetts).
  13. N1*SH*ABC CUSTOMER – This line contains the N1 segment which identifies a party involved in the shipment (in this case, the shipper – SH) and provides their name (ABC CUSTOMER).
  14. N4* BOSTON*MA – This line contains the N4 segment which provides information about the location of the shipper (in this case, Boston, Massachusetts).
  15. PER*NT*JEAN DUPONT*TE*098-765-4321– This line contains the PER segment which provides contact information for a person or department involved in the shipment. In this case, it is Jean Dupont, and its phone number (TE) is 098-765-4321.
  16. R2*BNSF*S****R – This line contains the R2 segment which provides Route Information and  the equipment used to transport the shipment, including the carrier (BNSF) and the type of equipment (R for a railcar).
  17. LX*1 – This line contains the LX segment which identifies an Assigned Number.
  18. L5*1*WALLBOARD*1301210*T – This line contains the L5 segment which provides information about the product being shipped (descriptions, marks, and Numbers) in this case, WALLBOARD. T = Standard Transportation Commodity Code (STCC)
  19. L0*1*******1*CLD – This line contains the L0 segment which provides information about Line Item, Quantity and Weight. CLD – Car Load, Rail.
  20. PI*CT*12345***BNSF*BNC – Price Authority Information. CT – contract, BNSF – the carrier.
  21. SE*21*2315 – This line contains the SE segment which is a transaction set trailer. It specifies the number of segments in the transaction set (21) and a unique control number (2315) assigned by the sender.
  22. GE*1*2315 – This line contains the GE segment which is a functional group trailer. It specifies the number of transaction sets in the functional group (1) and a unique control number (2315) assigned by the sender.

EDI 404 Document for Rail Carrier Companies

Many companies in the transportation industry use EDI X12 404 Rail Carrier Shipment Information to automate the exchange of shipment information with their trading partners. Here are a few examples of companies that use this transaction set:
  1. Union Pacific Railroad Union Pacific Railroad is one of the largest freight railroad networks in North America.
  2. Canadian National Railway Canadian National Railway is a transportation company that operates a comprehensive rail network in Canada and the United States.
  3. Norfolk Southern Corporation Norfolk Southern is a transportation company that operates a rail network in the eastern United States.
  4. BNSF Railway BNSF Railway is a freight transportation company that operates a rail network in North America.
  5. CSX Transportation CSX Transportation is a transportation company that operates a rail network in the eastern United States.

These are just a few examples of companies that use EDI X12 404 Rail Carrier Shipment Information. Many other transportation companies also use this transaction set to automate the exchange of critical shipment data with their trading partners.

Conclusion: EDI X12 404 Rail Carrier Shipment Information

In conclusion, understanding EDI X12 404 Rail Carrier Shipment Information is crucial for businesses operating in the logistics industry. As we have seen, it streamlines communication between rail carriers and shippers, making the transportation of goods more efficient and cost-effective.

At our company, we have many years of experience in EDI integration and can provide free EDI consultation to businesses looking to implement EDI X12 404 or any other EDI document. We understand the importance of staying up-to-date with industry developments and are committed to helping our clients achieve success in their logistics operations.

So if you’re looking to streamline your logistics processes and improve communication with your rail carriers, don’t hesitate to reach out to us for a consultation. We look forward to working with you and helping your business thrive in the ever-evolving world of logistics.
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EDI Integration for Transportation and Logistics

Electronic Data Interchange (EDI) Integration for Transportation and Logistics

Electronic data interchange (EDI) is the exchange of commercial and financial electronic documents between business partners. There are several EDI standards used in transportation and logistics:

– EDI X12 standard used in the United States and Canada.

– EDIFACT – mainly used in Europe and international transportation.

Useful Reading: What Are the Differences Between ANSI X12 and UN/EDIFACT

The exchange of EDI documents between business partners simplifies and speeds up business processes. That is why, in logistics, regardless of the mode of transportation, motor, marine, or rail transportation EDI is used as a fast, economical, and safe method of transferring important business information related to the transportation of goods.

How is EDI used in transportation?

Electronic Data Interchange (EDI) is widely used in transportation and logistics to automate communication and data exchange between different parties involved in the transportation process, such as shippers, carriers, and third-party logistics providers (3PLs).

In transportation, EDI is used for various tasks such as:

Shipment tracking and status updates: EDI messages can be used to provide real-time information about the status of shipments, such as pickup and delivery times, estimated time of arrival (ETA), and any delays or issues.

Shipping documentation: EDI can be used to exchange shipping documents such as bills of lading, packing lists, and customs declarations, which helps to reduce errors and streamline the shipping process.

Freight invoicing and payment: EDI messages can be used to exchange billing and payment information between shippers, carriers, and 3PLs, reducing the need for manual data entry and minimizing the risk of errors and disputes.

Capacity planning and optimization: EDI can be used to exchange information about available capacity, shipment volumes, and transportation rates, enabling carriers and shippers to plan their operations more efficiently and make more informed decisions.

What are the most important EDI documents used in transportation?

In addition to common EDI transactions such as orders or invoices, each industry uses its specific EDI documents. Electronic Data Interchange in logistics ensures the operational interaction between business partners (buyers, suppliers, 3PL warehouses, forwarders, etc.) at all stages of the delivery, and improves the management of complex business processes. Thus, in transportation, the following types of EDI documents are most commonly used:

EDI 204 – Motor Carrier Load Tender: This EDI document is typically sent from the shipper (retailer, manufacturer, or a distribution center) to the transportation provider to request pickup of the shipment.

EDI 990 – Response to the Load Tender: used by the transportation provider to inform acceptance or rejection of the shipment order.

EDI 214 Transportation Carrier Shipment Status Message: delivery status message sent by the transportation company to the shipper (retailer, manufacturer, or a distribution center) to give an update on the status of delivery.

EDI 210 Motor Carrier Freight Details and Invoice: Submits by transportation provider to the shipper after delivery. This EDI transaction contains full information about the cost of services provided by the transportation provider and is used as an invoice for a payment request.

EDI 212 Motor Carrier Delivery Trailer Manifest – send by a transportation company to consignees to inform about the contents of a trailer containing multiple loads.

EDI 856 Advanced Ship Notice (ASN): sent by transportation provider or warehouse / supplier to the consignee immediately upon closing the truck, to inform about all pertinent data relative to the shipment.

EDI 997 – Functional Acknowledgement: used by both parties t to confirm they received the transaction set.

Complete list of EDI transportation codes

Below is a complete list of EDI X12 transactions sets used in the transportation industry. The EDI transactions listed below are maintained by the X12I subcommittee under the X12 Accredited Standards Committee.
  • EDI 104 Air Shipment Information
  • EDI 106 Motor Carrier Rate Proposal
  • EDI 107 Request for Motor Carrier Rate Proposal
  • EDI 108 Response to a Motor Carrier Rate Proposal
  • EDI 109 Vessel Content Details
  • EDI 110 Air Freight Details and Invoice
  • EDI 120 Vehicle Shipping Order
  • EDI 121 Vehicle Service
  • EDI 125 Multilevel Railcar Load Details
  • EDI 126 Vehicle Application Advice
  • EDI 127 Vehicle Baying Order
  • EDI 128 Dealer Information
  • EDI 129 Vehicle Carrier Rate Update
  • EDI 160 Transportation Automatic Equipment Identification
  • EDI 161 Train Sheet
  • EDI 163 Transportation Appointment Schedule Information
  • EDI 204 Motor Carrier Load Tender
  • EDI 210 Motor Carrier Freight Details and Invoice
  • EDI 211 Motor Carrier Bill of Lading
  • EDI 212 Motor Carrier Delivery Trailer Manifest
  • EDI 213 Motor Carrier Shipment Status Inquiry
  • EDI 214 Transportation Carrier Shipment Status Message
  • EDI 215 Motor Carrier Pickup Manifest
  • EDI 216 Motor Carrier Shipment Pickup Notification
  • EDI 217 Motor Carrier Loading and Route Guide
  • EDI 219 Logistics Service Request
  • EDI 220 Logistics Service Response
  • EDI 222 Cartage Work Assignment
  • EDI 223 Consolidators Freight Bill and Invoice
  • EDI 224 Motor Carrier Summary Freight Bill Manifest
  • EDI 225 Response to a Cartage Work Assignment
  • EDI 227 Trailer Usage Report
  • EDI 228 Equipment Inspection Report
  • EDI 240 Motor Carrier Package Status
  • EDI 250 Purchase Order Shipment Management Document
  • EDI 284 Commercial Vehicle Safety Reports
  • EDI 285 Commercial Vehicle Safety and Credentials Information Exchange
  • EDI 286 Commercial Vehicle Credentials
  • EDI 300 Reservation (Booking Request) (Ocean)
  • EDI 301 Confirmation (Ocean)
  • EDI 303 Booking Cancellation (Ocean)
  • EDI 304 Shipping Instructions
  • EDI 309 Customs Manifest
  • EDI 310 Freight Receipt and Invoice (Ocean)
  • EDI 311 Canada Customs Information
  • EDI 312 Arrival Notice (Ocean)
  • EDI 313 Shipment Status Inquiry (Ocean)
  • EDI 315 Status Details (Ocean)
  • EDI 317 Delivery/Pickup Order
  • EDI 319 Terminal Information
  • EDI 322 Terminal Operations and Intermodal Ramp Activity
  • EDI 323 Vessel Schedule and Itinerary (Ocean)
  • EDI 324 Vessel Stow Plan (Ocean)
  • EDI 325 Consolidation of Goods In Container
  • EDI 326 Consignment Summary List
  • EDI 350 Customs Status Information
  • EDI 352 Customs Carrier General Order Status
  • EDI 353 Customs Events Advisory Details
  • EDI 354 Customs Automated Manifest Archive Status
  • EDI 355 Customs Acceptance/Rejection
  • EDI 356 Customs Permit to Transfer Request
  • EDI 357 Customs In-Bond Information
  • EDI 358 Customs Consist Information
  • EDI 359 Customs Customer Profile Management
  • EDI 361 Carrier Interchange Agreement (Ocean)
  • EDI 404 Rail Carrier Shipment Information
  • EDI 410 Rail Carrier Freight Details and Invoice
  • EDI 412 Trailer or Container Repair Billing
  • EDI 414 Rail Carhire Settlements
  • EDI 417 Rail Carrier Waybill Interchange
  • EDI 418 Rail Advance Interchange Consist
  • EDI 419 Advance Car Disposition
  • EDI 420 Car Handling Information
  • EDI 421 Estimated Time of Arrival and Car Scheduling
  • EDI 422 Equipment Order
  • EDI 423 Rail Industrial Switch List
  • EDI 424 Rail Carrier Services Settlement
  • EDI 425 Rail Waybill Request
  • EDI 426 Rail Revenue Waybill
  • EDI 429 Railroad Retirement Activity
  • EDI 431 Railroad Station Master File
  • EDI 432 Rail Car Hire Rate Negotiation
  • EDI 433 Railroad Reciprocal Switch File
  • EDI 434 Railroad Mark Register Update Activity
  • EDI 435 Standard Transportation Commodity Code Master
  • EDI 436 Locomotive Information
  • EDI 437 Railroad Junctions and Interchanges Activity
  • EDI 440 Shipment Weights
  • EDI 451 Railroad Event Report
  • EDI 452 Railroad Problem Log Inquiry or Advice
  • EDI 453 Railroad Service Commitment Advice
  • EDI 455 Railroad Parameter Trace Registration
  • EDI 456 Railroad Equipment Inquiry or Advice
  • EDI 460 Railroad Price Distribution Request or Response
  • EDI 463 Rail Rate Reply
  • EDI 466 Rate Request
  • EDI 468 Rate Docket Journal Log
  • EDI 470 Railroad Clearance
  • EDI 475 Rail Route File Maintenance
  • EDI 485 Ratemaking Action
  • EDI 486 Rate Docket Expiration
  • EDI 490 Rate Group Definition
  • EDI 492 Miscellaneous Rates
  • EDI 494 Rail Scale Rates
  • EDI 601 Customs Export Shipment Information
  • EDI 603 Transportation Equipment Registration
  • EDI 715 Intermodal Group Loading Plan
  • EDI 854 Shipment Delivery Discrepancy Information
  • EDI 858 Shipment Information
  • EDI 859 Freight Invoice
  • EDI 920 Loss or Damage Claim – General Commodities
  • EDI 924 Loss or Damage Claim – Motor Vehicle
  • EDI 925 Claim Tracer
  • EDI 926 Claim Status Report and Tracer Reply
  • EDI 928 Automotive Inspection Detail
  • EDI 980 Functional Group Totals
  • EDI 990 Response to a Load Tender
  • EDI 998 Set Cancellation

The Benefit of Using EDI in Transportation

The exchange of information between business partners (orders, invoices, etc.) on paper or by e-mail requires manual input of information into the ERP, CRM, accounting, or other corporate back-office application of the company. The use of EDI allows companies to avoid manual input – all transactions are performed automatically, without delays or inaccuracies.

EDI for transportation

The use of EDI in transportation allows:
  • to optimize the entire supply chain, namely the processes of management, planning, and control of transportation;
  • to increase the speed and efficiency of data processing and improve accuracy;
  • the manufacturer to promptly respond to the buyer’s requests;
  • transport companies to make delivery on time;
  • wholesale suppliers to improve the efficiency of logistics and procurement and optimally manage their inventory;
  • to reduce transportation costs;
  • improve accuracy and avoid manual input of information.

Thus, the use of EDI increases the speed and accuracy of data and allows companies to concentrate on important business tasks, and not on routine issues of processing and sending documents.

EDI integration in Logistics: Fully Managed EDI Service vs EDI Web Service (API)

Companies implementing EDI can be divided into two groups:

– EDI Initiator company

– Companies involved in the EDI process

Fully Managed EDI Service for EDI Initiator Company

Initiator – a company that realized the great potential of using EDI and decided to implement EDI in operations with its business partners. These are usually large market players who have been using EDI for many years.

Usually, these companies have many business partners and a huge monthly document turnover. That is why they often choose a Fully Managed EDI Service.

However the situation has changed in recent years, more and more mid-sized companies operating in the transportation industry are realizing the benefits of using EDI and are actively integrating Electronic Data Interchange to exchange critical important documents with their business partners.

This is why, we, at EDI2XML offer a Fully Managed EDI service that can fit any size company.

Our EDI2XML integration platform, deployed in our private cloud, runs 24/7/365 and handles all EDI file conversion and transformation between business partners, so customers do not need to install software or hardware onsite.
Fully managed EDI Service

We, as an integration and EDI provider, are responsible for all stages of the integration: from project planning to the development of the file format requested by the client (Json, XML, TXT, CSV), as well as testing and certification with your business partner.

Our “fully managed” EDI service solution has a dynamic monthly price that increases or decreases depending on the volume of data transferred.

This allows us to meet the needs of even small companies with a small volume of transferred documents.

EDI Web Service for Companies involved in the EDI process

Involved companies– organizations that are forced to implement EDI at the request of the initiating company to start a partnership and conclude a contract or when a business partner specifies the use of EDI as a pre-requisite or condition for further business collaboration.

In involved companies, the decision to implement EDI is made at the initiative of a third-party company. However, this requirement does not necessarily imply a large investment for EDI integration.

For companies that find themselves in a situation where a business partner requires a quick connection to EDI, we offer our unique solution EDI Web Service.

EDI2XML web service is our REST API to convert and transform X12 to XML and vice versa. The API web service is very low-cost relative to the Fully managed EDI Service and designed for companies who got their own technical resources to work with REST API (call and consume HTTP Rest Web services). Definitive benefits of EDI Web Service is a low cost per KC, no contract, no commitment, and especially quick entry: you can be up and running in less than an hour, and it is proven; we provide everything to your developers to get started, a java client with its source code and instructions on how to work with.

Choose the best EDI provider for the logistics and transportation industry

In modern logistics, the requirements for carriers are very high and the use of EDI helps them keep the bar high.

We, as a successful EDI provider, have been helping our customers for 21 years quickly, reliably connect to EDI and integrate it into business systems.

Contact us for a free consultation and we will help you choose the most suitable EDI solution for your business.

You may also be interested in reading about:

EDI Integration for B2B Exchange to Optimize and Grow your Business

What is B2B EDI? 

B2B (Business-to-Business) Integration, also known as Electronic Data Interchange EDI, is the process of exchanging business documents electronically either internally or amongst external business partners.

Electronic data interchange (EDI) has become a standard data exchange practice in modern business. EDI allows companies to automate their business processes leading to greater efficiency. Automated data exchange allows to avoid errors, reduce order processing time, and achieve accuracy.

What is meant by EDI?

EDI (Electronic Data Interchange) is the process of exchanging documents electronically through secure communication channels from one software information system to another. In other words, from one business partner to another.

In a fully automated process, the exchange of electronic documents (for example, receiving and processing orders), can take place at the application level, without the direct involvement and participation of employees.

Who typically uses EDI?

EDI standard and connected technologies are used in a B2B data exchange protocol, of any type of businesses in different industries. These can be large, medium, or small enterprises operating in retail, manufacturing, healthcare, pharmaceutical, or any other industry. EDI is also used in international trade such as air, sea, and road transportation. Not surprising, to see customs in most of the countries using EDI heavily in their cross-border operations.

Experience shows that large retailers such as Walmart, Costco, Kroger, Home Depot, Target, etc. are always the initiators of electronic data exchange. Moreover, almost all retailers, having evaluated the advantages of using EDI, force their suppliers to exchange documents only through EDI.

EDI Integration with Business Systems (ERP/CRM)

EDI integration allows to automate the creation, sending, receiving, and processing of any business documents in electronic format with a trading partner, existing backend business systems, or applications, to provide a greater level of efficiency and complete automation.

With over 21 years of experience in EDI and the integration marketplace, our company EDI2XML has a proven experience in integrating EDI, with the most frequently used systems:

EDI Integrations and eCommerce Businesses  

EDI is also becoming a vital element of the e-commerce business; we are receiving more and more requests for e-commerce integration with EDI.

Especially, requests for connecting online stores running on one of the major e-commerce platforms. The most frequent EDI e-commerce integration are:

  • Shopify EDI Integration
  • Magento EDI Integration
  • BigCommerce EDI Integration
  • Amazon Vendor Central EDI integration
  • Amazon Seller Central EDI integration
  • Walmart EDI Integration
  • And much more…

This means that orders from an online store will be automatically converted into an EDI document (for example X12 EDI 850 Purchase Order) and pushed into a supplier’s business system. This is the most common scenario in an eCommerce dropship business.

However, it is worth mentioning the very common request for e-commerce integration with ERP / CRM systems. This means syncing data between business software systems (SAP, Salesforce, JDE, etc.) with your e-commerce store.

Fully Managed EDI Services to automate data exchange with business partners

Our company offers a fully managed EDI service that includes transformation and connectivity services for companies of all sizes.

Our customers do not need to install any software or hardware because all EDI file conversions and transformations, are done from our side. We carry out all stages of an integration project from project planning to testing with the trading partner.

Our integration platform receives EDI files (for example x12 or EDIFACT) from the trading partner, then converts them into the required format (i.e. XML, CSV, TXT) and sends them to you (see the picture below).

Fully managed EDI Service

EDI2XML platform will sit in  the middle between you and your trading partner to convert, send and collect all EDI documents.

Request Fully Managed EDI Service Pricing Plans HERE for more information.

Benefits of using EDI for B2B exchange

Currently, using the latest technologies, EDI implementation is not so expensive (as many business leaders might think), but the benefits of EDI integration allow companies to significantly speed up document flow and increase sales. Besides, EDI has many advantages, namely:

  • EDI enables companies to optimize all processes in the enterprise, from planning to production management and control.
  • EDI allows increasing the speed and efficiency of data processing. Mandatory use of standards (for example X12 or EDIFACT) helps to avoid errors and improve accuracy.
  • EDI helps manufacturers to quickly respond to the requests of their wholesalers’ customers.
  • EDI document exchange allows retailers and wholesalers to improve the efficiency of logistics and procurement as well as improve inventory management. For example, using EDIFACT messages such as INVRPT, DELFOR, DELJIT, and DESADV allows reducing warehouse storage costs.
  • EDI integration allows companies to reduce the number of employees who enter data into the business system received on paper or by e-mail.
  • EDI increases the accuracy of information processing because as practice shows, errors are inevitable with manual data entry.

B2B / EDI Integration – find the best Solution

EDI2XML offers various EDI integration solutions.

Whether you are a buyer, supplier, manufacturer, retailer, 3PL Warehouses, or Logistics – using our advanced EDI technology, you can exchange data electronically with all your partners quickly, reliably, and efficiently.

We’ve got an EDI solution that really makes your day-to-day tasks easier and faster!

Contact us for a free consultation with our EDI experts.

EDI for Transportation – EDI 214 Transportation Carrier Shipment Status Message

Transportation and logistics companies rely heavily on EDI to exchange information with their trading partners, including shippers, carriers, and freight forwarders. EDI provides a standardized, automated method of exchanging documents, reducing the need for manual processing and improving the speed and accuracy of information exchange.

By adopting EDI, transportation companies have been able to streamline their processes and significantly reduce the time and costs associated with manual tasks. In this article, we will take a closer look at EDI 214 – Transportation Carrier Shipment Status Message and its importance in the transportation industry.

What is EDI 214?

EDI 214 is an electronic document used in the context of EDI (Electronic Data Interchange) to provide detailed shipment status information. The formal name of this EDI document is ANSI X12 214 Transportation Carrier Shipment Status Message Transaction Set.

EDI 214 Definition

EDI 214 is a delivery status message sent from the transportation company to the shipper, as well as the consignee and their agents, as an update on the status of delivery. The document provides real-time updates on the status of a shipment, from pickup to delivery, and includes details such as the carrier name, equipment type, pickup and delivery dates and times, and any exceptions or delays that may have occurred during transit.

Where Is EDI 214 Transportation Carrier Shipment Status Message Used?

EDI 214 is used in transportation, logistics, supply chain, and international trade. As mentioned above, transport companies use EDI 214 to inform shippers and consignees about the status of their cargo.

Here are some examples of the largest transportation companies in the world using EDI. It can be based on either the X12 or EDIFACT standard (which is typical for European companies).

Some examples of the biggest Less-Than-Truckload (LTL) Carriers in North America using EDI 214 document:

Why is EDI 214 Important In The Transportation Industry?

In the transportation industry, timely and accurate information about the status of a shipment is crucial. EDI 214 allows carriers and their trading partners to exchange information quickly and efficiently, enabling them to make informed decisions about the shipment and take appropriate action if necessary.

What Does EDI 214 Include?

EDI 214 transaction set may include various information related to shipments made by transport service providers. Thus, as a status document, EDI 214 provides information about the physical location of cargo at any given time and can contain information on more than twenty “events”.

However, depending on the business model of the company or its specifics, business partners determine the exact list of necessary information to be transmitted in an EDI 214 document. Typically, the Transportation Carrier Shipment Status Message contains the following information:
  • Sent from – name and address
  • Place of delivery – address or coordinates
  • Shippers Purchase Order Number
  • Estimated Time of Arrival
  • Route Information
  • Delivery confirmation – location, signature
  • Information about the status of the shipment
  • Description of shipment – weight, packaging, and quantity.

Depending on the requirements of the company, EDI 214 can be produced 4 to 6 times per day up to a once per week; all depends on the business use case.

How Does EDI 214 Work?

EDI 214 works by using a standard format for exchanging information between trading partners. The document is transmitted electronically between the carrier and their trading partner, using a secure and reliable EDI network.

The information contained in the EDI 214 document is structured using a set of data elements and segments, which are defined by the ANSI X12 standard. The data elements and segments provide a standardized way to communicate information about the shipment, ensuring that all parties understand the information being shared.

EDI 214 Business Workflow

Usually, the EDI 214 Transportation Carrier Shipment Status Message can be partnered with additional EDI transactions, such as EDI 204 Load Tender and EDI 990 – Response to a Load Tender.

Below is one of the possible workflows involving EDI 214.

To accept the EDI 204 Load Tender transportation company must send to shipper EDI 990 – Response to a Load Tender. Then, the carrier starts feeding the shipper with EDI 214 Transportation Carrier Shipment Status Message.

EDI 214 contains information about pickup and delivery times. Moreover, EDI 214 transaction set can be sent multiple times. First EDI 214 to indicate loading time; next 214 transaction set, can be sent to indicate delivered time.

Benefits of Using EDI 214

For retailers, EDI 214 transaction serves as an important source of information when scheduling and/or adjusting the schedule of goods receipt, as well as for the efficient allocation of resources and personnel.

Besides, by receiving status updates via EDI 214 messages from carriers, retailers do not need to make verification calls to clarify delivery times.

Some of the key benefits of using EDI 214 in the transportation industry include:

Improved visibility: EDI 214 provides real-time updates on the status of a shipment, enabling carriers and their trading partners to track the shipment’s progress from pickup to delivery. This visibility allows them to proactively identify and resolve any issues that may arise during transit.

Increased efficiency: By automating the process of sharing shipment status information, EDI 214 eliminates the need for manual data entry and reduces the risk of errors. This leads to increased efficiency and reduces the time and costs associated with manual tasks.

Better collaboration: EDI 214 enables carriers and their trading partners to collaborate more effectively by sharing information in real-time. This collaboration improves communication and helps to ensure that all parties are on the same page when it comes to the shipment.

Many shippers and consignees use the Transportation Carrier Shipment Status Message as a tool to control the carrier’s transit time. To determine if the carrier has met the time schedules for transportation, they note the date and time of shipment and receipt of the goods.

EDI 214 Status Code List

The EDI 214 Transportation Carrier Shipment Status Message uses a standardized set of status codes to indicate the status of a shipment. Here are some commonly used status codes:

AF: ACTUAL PICKUP. The shipment has been picked up

AG: ESTIMATED DELIVERY. An estimated delivery date is calculated at the time the shipment is picked up.

AB: APPOINTMENT DATE. A delivery appointment has been set up.

AI: RECONSIGNED. The consignee has changed.

A3: RETURNED TO SHIPPER. The final status for this type of shipment.

AJ: TENDERED FOR DELIVERY. The tendered date for the shipment.

CA: CANCELED. The shipment has been canceled/voided for one of numerous reasons.

D1: DELIVERED.

A7: REFUSED BY CONSIGNEE.

K1: PROCESSING THROUGH CUSTOMS.

R1: RECEIVED FROM PRIOR CARRIER.

X9: DELIVERY APPOINTMENT REQUESTED

Note that this is not an exhaustive list and some EDI trading partners may use additional status codes or custom codes. It’s important to verify the specific status codes used by your trading partners to ensure accurate communication and avoid any delays or errors in your transportation operations.

EDI For The Transportation Services Sector and Logistics

Nowadays, almost every company, whether it is a shipper, consignee or carrier, exchange information through EDI.

Below is a list of the most popular EDI transactions in the transportation industry.
  • 204 Motor Carrier Load Tender
  • 990 Response to a Load Tender
  • 210 Motor Carrier Freight Details and Invoice
  • 211 Motor Carrier Bill of Lading
  • 212 Motor Carrier Delivery Trailer Manifest
  • 214 Transportation Carrier Shipment Status Message
  • 215 Motor Carrier Pickup Manifest
  • 216 Motor Carrier Shipment Pickup Notification
  • 820 Payment Order/Remittance Advice
  • 997 Functional Acknowledgment

Find the Perfect EDI Service For Your Business

Do you need to use the EDI 214 transaction with your business partner? Therefore, you are looking for an efficient fully managed, EDI service. You are at the right place. We can help you.

We offer our clients fully managed EDI Services including various communication protocols such as:
  • VAN
  • AS2
  • FTP, or sFTP.

Connect EDI With Your ERP, CRM, TMS, or e-Commerce

To ensure complete automation of your logistic processes, we integrate your EDI process with almost any business system in the market such as:
  • Microsoft Dynamics
  • Salesforce
  • Sage
  • Oracle NetSuite
  • JD Edwards
  • SAP

We also integrate EDI with e-commerce.

Start Exchanging EDI In An Hour or Less Using our EDI Web Service

EDI web service is the easiest and fastest way to get started with EDI.

To connect to our EDI REST web service and be able to exchange EDI documents, all you need to do is have access to the Internet and know your API Token and password for access.

In less than an hour, you can start exchanging EDI messages. EDI2XML REST web service provides great benefits for your business. You do not need to have experience with EDI. There is no need to sign a contract, pay as you go by very simple and dynamic pricing.

Useful: Request EDI2XML Web Service Price List

Regardless of whether you are a large freight forwarding company with numerous trading partners or a small transport company, you can exchange EDI 214 or any other EDI messages using our EDI REST service.

You can rely on our over 20 years of experience with EDI and integration projects, whether it is consulting, technical support, or project planning: we provide your company with everything you need.

Contact us for more information and a free consultation.

You may also be interested in reading about:

Magic xpi and EDI2XML HTTP web service: the best EDI software option

This post was updated to reflect current trends and information.

More and more questions related to EDI software, systems integration, EDI, best EDI software are being raised every day by our contacts and clients. I decided to tackle those questions in this post, hoping it will help consultants, as well as companies looking for the most suitable EDI software solution.

Automation via EDI software

It does not matter which industry a company is part of be it sales, manufacturing, or service delivery at some point, every company seeks to automate its internal processes, increase efficiency and eliminate human errors.

A very common situation is the automation in e-commerce, namely – online eCommerce stores. Typically, there are several people who will work on order processing, after an order is keyed-in and entered by the consumer:

  • Operators who manually transferred orders received from the e-commerce site to the internal system.
  • A warehouse worker who will ship orders.

In an environment where EDI is implemented in such a company, and systems eCommerce and on-Premises systems are directly integrated, the need for operators to enter orders, disappears as the order is automatically transferred to the internal system of a company.

As a result, the persons in charge of shipping orders can prepare the goods for dispatch without the help of operators. So, operators are not needed at all.

The company saves money by reducing staff, eliminating errors due to human factors, moreover, the company will be able to quickly ship and deliver orders in a short window of time, which improves greatly its customer service experience.

With the growth of the business, a new need arises – the necessity for interaction between various business partners who use different systems. Nowadays many companies have realized that EDI (Electronic data interchange) along with integration of its business applications, helps enterprises and qualitatively changes the work of employees.

Grow your potential with EDI web service solution

Today, there are many EDI software solutions in the market that allows you to trade electronically with your business partners. Before making a decision and choosing an EDI software, you should pay attention to:

  • the possibility of modernization and scaling
  • the simplicity of EDI implementation
  • ability to send and receive a variety of EDI documents
  • ease of use and feature-rich
  • ability to integrate with other solutions

one important trend in the tech industry today that is very popular, is the use of web services. It is a trend as a technology and as a business methodology.

If you what to know more about web services technology read our article: Seamless EDI implementation through Web Services

Our unique EDI software includes a combination of EDI2XML EDI Web services, and Magic xpi, the code free integration platform, with drag and drop visual aping, simple to use. This combination will reduce the complexity of EDI development, allowing organizations to quickly reap the benefits of this powerful technology, quickly on-board its partners, and most importantly, fully automate and integrate its own ERP or CRM system in a matter of days.

EDI2XML Web Service, is an HTTP service running over the internet, on EDI2XML own private platform that is capable of receiving HTTP requests to translate EDI messages to XML, and XML messages (based on EDI2XML’s proprietary format) to EDI.

EDI2XML HTTP services provide technological and business benefits which include:

  • Application and data integration
  • Versatility
  • Cost savings (no contract: pay as you go)
  • Very simple and dynamic pricing scheme
  • Quick start of using (you can start with less than an hour)
  • Availability and reliability
  • Based on proven technology in the field for over 18 years now
  • Outstanding technical support

Who is EDI2XML web service for?

EDI2XML Web Service, is for developers and businesses, interested in building their own EDI (Electronic Data Interchange) integration flows and programs. Normally, these individuals, are capable of interacting with external API and Web Services to translate EDI to XML and XML to EDI, and have the resources and expertise to work with Web Services and HTTP requests in order to achieve their goals. EDI2XML web service, is the premier choice for IT people as a reliable service to accomplish such Integration projects.

Getting started with EDI2XML Web Service, is very simple and quick. Within less than an hour, you can issue the first Call to the Web Service and see the response.

EDI2XML Web Service currently, supports the EDI transactions as listed on our website. In case a transaction you are looking for is not on the list, we can simply just add it within 24 hours.

Increase competitive power through integration EDI software

Often, companies are already using different business applications such as CRM or ERP systems, which they are quite satisfied. But the question is: can they work in harmony with each other, and integrate together? What is the best way to integrate EDI software to them?

Have you ever thought that EDI software can improve your business by integration all of your business applications and organizing a new way of transferring data and processes through your CRM, ERP, WMS, SCM, finance, third-party applications, and other outdated or cloud-based system?

As mentioned above our EDI software include EDI web service and Magic xpi integration platform;  this technology combination can cover all your business needs. Before we review what is Magic xpi integration platform, let’s see what integration is.

Integration (from the Latin. Integratio – “insert”) – the process of inserting parts into something. Depending on the context, it may mean:

  • Web integration – the integration of heterogeneous web applications and systems into a single web-based environment.
  • Data Integration – Data integration involves combining data residing in different sources and providing users with a unified view of them. (definition from Wikipedia)

I would add this Wikipedia definition as follow: The integration of software systems and products is the exchange of data between systems with possible subsequent processing. The point of integration is that the data entered by the user (or directly injected by another application or API) into one system is automatically migrated to another.

Magic xpi – efficient integration for any business and any system

Magic xpi makes integration fast and uninterrupted due to pre-built components, proven and certified connectors as well as code-free, visual approach.

Using Magic xpi Integration Platform you can connect a varied business application and systems and improve the capabilities of your ERP, CRM, finance, and other enterprise systems.

Unlike other integration platforms that use complex point-to-point coding, Magic xpi have easy to use, code-free, drag and drop visual data mapper. You can manage the performance of your system at all times thanks to comprehensive monitoring and management tools. Magic xpi has incomparable connectivity including 100+ prebuilt components, certified and optimized adapters for leading IT systems, and a Connector Builder for all your needs.

Magic xpi Integration Platform

Start with the best EDI Software solution

We do offer EDI projects consultancy. We help companies plan, deploy, test and integrate EDI projects. You can simply call us (450) 68-3009 Ext 223 or write us sales@namtek.ca if you need any EDI consulting work. We have a proven 20+ years of experience in EDI and integration projects.

SOAP or REST Web Services: what you should use for EDI implementation?


This post was updated to reflect current trends and information.


In my previous article Seamless EDI implementation through Web Services, I covered various types of web services. Perhaps, if you’re still worried about choosing between SOAP or REST for your EDI implementation, this brief comparative review should help you make a choice. But in any case, you should remember that the focus of your decision must concentrate on which web service best responds to your needs.

First, look at the difference between the SOAP and REST request and response packets.

Here is a SOAP request and response packets:

SOAP request sample

SOAP response sample

Here is a REST request and response:

REST sample request and response

What is difference between SOAP and REST Web services?

1. SOAP actively uses XML to encode requests and responses, as well as strong data typing, ensuring the integrity of the information is intact, during transmission between the client and the server. On the other hand, requests and responses in REST can be transmitted in ASCII, XML, JSON or any other formats that can be recognized by both the client and the server. In addition, there are no built-in data type requirements in the REST model. As a result, the request and response packets in REST are much smaller than their corresponding SOAP packets.

2. In the SOAP model, the HTTP data transfer layer is a “passive observer,” and its role is limited to sending SOAP requests from a client to the server using the POST method. Service request details, such as the remote procedure name and input arguments, are encoded in the request body. Opposite of SOAP the REST architecture, considers the HTTP data transfer layer as an active participant in an interaction using existing HTTP methods, such as GET, POST, PUT, and DELETE, to indicate the type of service requested. Therefore, from a developer’s perspective, REST requests are generally simpler to be formulated and understood since they use existing and well-understood HTTP interfaces.

3. The SOAP model allows service developers to describe its APIs in a Web Service Description Language (WSDL) file format. Creating these files is quite difficult, but it’s well worth the effort since SOAP clients can automatically retrieve detailed information from these files. For example, about the names and method signatures, input and output types and return values. On the other hand, the REST model avoids the complexity of WSDL in favor of a more intuitive interface based on the standard HTTP methods described above.

4. At the “heart” of REST is the concept of resources, while SOAP uses interfaces based on objects and methods. The SOAP interface can contain an almost unlimited number of methods; the REST interface, in contrast, is limited to four possible operations, corresponding to the four HTTP methods.

Useful link: Download EDI Web Service overview. 

This EDI Web Service overview covers the following topics:

  • What is EDI2XML Web Services?
  • Advantages of using EDI2XML HTTP service
  • Who is EDI Web Service for?

The best Web Service for EDI

EDI2XML Web Service, is for developers, systems integrators and businesses, interested in building their own EDI (Electronic Data Interchange) integration flows and programs. Normally, these individuals, are capable of interacting with external API and Web Services to translate EDI to XML and XML to EDI, and have the resources and expertise to work with Web Services and HTTP requests in order to achieve their goals. EDI2XML web service, is the premier choice for IT people as a reliable service to accomplish such Integration projects.

The best way to discover how REST works for EDI is to try our free 15- days trial version of EDI2XML Web Service.

Click here to request the price list in order to access EDI2XML Web Service

 

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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?

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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

A must-have guide for a successful systems integration with EDI

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Introduction

The concept of Electronic Data Interchange (EDI) is still very abstract for a business owner up until today. More often, as soon as an SME (small to medium-size enterprise) is requested by an important partner to comply with electronic data interchange process or do EDI, everyone gets on a big pig panic inside the enterprise, and all reinforcements are being called to help with such project.

Why Integration projects are nightmare?

EDI IntegrationIn fact, large chains are extremely important customers for many small and medium size enterprises. It is therefore essential, even vital, for many of them to follow the requirements imposed by those major retailers. Actually, all the large chains use mainly EDI format to exchange business transactions with their partners.

However, it can be risky for a company to embark on EDI integration without carefully evaluating business processes and needs.

 

Recommendations and steps for a successful integration

More than any other IT solution, EDI technology can profoundly modify several business processes of the company. EDI integration projects, must be planned and executed, according to a coherent process. Here are the different steps:

Step-1 Preparing of an EDI implementation team

It is essential that senior management be involved in any EDI integration project and implementation, at least at a high level.

Ideally, the EDI implementation team should include representatives from different departments, such as operations management, sales and information services.

It is important for the team to design together a good flow of information, so everyone understands the issues, the scope, and the benefits of the project. A project manager, should be assigned to take charge of such a mandate.

Step-2 Setting a project timeline

The implementation team should set and ETA and develop a plan with a complete list of tasks, resources required, and delivery estimates.

Step-3 Choice of standards

While the choice of standard of EDI format and communication protocols is very limited, this phase consists on just reviewing and making sure all specs and documentations are in place for the kick-off.

Step-4 Choice of documents for EDI transaction

Often, trading partners specify the EDI standard and the type of documents they will send or accept. Sometimes partners use only a few of the possible documents such an Invoice EDI 810 form and purchase orders EDI 850 form.

Step-5 “On premises” or “cloud” based or EDI Web Sevice?

There are many ways to do EDI. It is depending of the anticipated transaction volume, or the size of the business. Going with a software solution deployed “on-premises” or adopting a “cloud based software” or maybe EDI Web Service

♦ The Cloud-based EDI Service is an excellent solution for Small and Medium-sized enterprises that do not have a budget for large EDI projects, and who do not have experienced staff with EDI exchange.

Learn more about EDI Solution as a Service for SMEs 

♦ The other way to get the most out of EDI, is by adopting a full EDI integration with your internal software management system like your ERP, CRM etc.

♦ EDI2XML Web Service, is for developers and businesses, interested in building their own EDI (Electronic Data Interchange) integration flows and programs. Normally, these individuals, are capable of interacting with external API and Web Services to translate EDI to XML and XML to EDI, and have the resources and expertise to work with Web Services and HTTP requests in order to achieve their goals. EDI2XML web service, is the premier choice for IT people as a reliable service to accomplish such integration projects.

Step-6 File Integration or direct system integration

When it comes to integration, the implementation should be decisive on how the integration to their CRM/ERP is going to happen: there are (2) methods to do such an integration; either through file integration, Where the ERP has already some built-in jobs to import data based on specific format, or direct integration. Obviously, this decision is also dependent on whether the software management system is a legacy system or a modern one, fully loaded with all kinds of API and programming interfaces. This part can be the most difficult and lengthy part, unlike what most people think…

Step-7 Integration project testing

Pilot projects are conducted both within the company and with external business partners. EDI test should be of a specified duration. They will help identify possible loopholes and establish a problem-solving plan. Technical employees should be trained in the technical aspects of EDI.

Step-8 Setting up

The implementation of the EDI system must be combined with several factors in order to be successful: adequate users training, proper implementation plan, and establishment of an emergency procedure.

For a small to medium-size enterprises, EDI integration is a good deal. An Electronic Data Interchange (EDI) capable enterprise retains an important customer or supplier and have a lot of opportunities to enter into new contracts with large companies.

For many years our EDI2XML service has been offering up-to-date integrated solutions at an affordable cost. We have been helping companies of all sizes, to optimize operations and improve their competitiveness.

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How does EDI2XML work ?

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How does EDI2XML work?

In simple terms, EDI2XML is a converter from EDI X12 format to XML format. The result XML format file is based on a pre-defined schema (xsd); we call it our “EDI2XML format”. Here is a very simple graphical description of the EDI2XML engine “in action”.

EDI Platform

Read: What is EDI ?

EDI2XML can work in two directions by changing a little switch when executing the command:

  • Convert incoming EDI X12 files to XML format
  • Convert outgoing XML format files to EDI format
For incoming EDI files, after a raw X12 EDI file is received using communication software and the EDI2XML engine is triggered, the following actions are executed one after the other:
– EDI2XML will verify the structure of the received file to make sure it is a valid raw EDI X12 format file
– If the raw EDI X12 file is valid in terms of structure, it will run another path to eliminate any information not considered part of EDI; for example, some headings and footers sent through the EDI VAN are automatically cleaned as it does not relate to any business information exchanged with the EDI partner
– The engine is smart enough to split a batch of incoming EDI files inside the same physical file, by envelop (ISA) and by ISA id, as a preparation for the conversion to XML, regardless of its EDI standard and revision
– Once all of the above is completed, the engine would generate for each one of the EDI files an equivalent XML formatted file.
The EDI2XML engine works a little differently when converting raw X12 files from an XML format. Once the engine is triggered with the option to convert XML to EDI X12 format, it will do the following actions:
– For each XML file found, EDI2XML will validate its structure and find out if it is well formed, to make sure it is compliant with edi2xml format and schema
– For each valid XML file, the engine will convert from XML to X12 raw EDI format
*It is important to note that the XML file should comply with a pre-defined xsd (or schema). All necessary information related to EDI versions and standards are sent within the XML file. For incoming and outgoing edi2xml formatted files, only files from the “ licensed” partners are being processed. Any EDI or XML file sent from/to an unlicensed partner will NOT be processed at all.

Read: How is EDI2XML licensed ?

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