Streamline communication with trading partners through EDI Integration—automate data exchange, reduce errors, and strengthen business relationships.

Tag Archive for: EDI Integration

EDI is used almost everywhere regardless of industry or company size. The most extensive use of EDI is in the retail industry. EDI compliance is mandatory in order to trade with big retailers such as Target, Costco, Walmart,… even giants of electronic commerce like Amazon are heavy users of EDI.

There are a lot of different types and approach of implementing EDI in your company. It can fully managed EDI service, or gaining popularity lately EDI Web Service, because, service architects and developers want EDI to be easy to implement, maintainable, extensible, and scalable.

What is web service?

Web service is a network technology that provides inter-program interaction based on web standards. More specifically, it’s client and server application that communicate over the World Wide Web’s (WWW).

The W3C consortium defines a web service as: “A Web service is a software system designed to support interoperable machine-to-machine interaction over a network”.

Thus, the web service is identified by a URI string. The Web service has a User Programmatic Interface (UPI) that is represented in WSDL format. Other systems interact with this web service by exchanging SOAP or REST protocol messages. HTTP Hypertext Transfer Protocol is used to transport the messages. The description of Web services and their APIs can be found by UDDI.

♦ WSDL (Web Services Description Language) – is an XML-based interface definition language that is used for describing the functionality offered by a web service.

♦ UDDI (Universal Discovery, Description and Integration) – is an XML-based registry for business internet services

Web services are rich in functionality and extensibility, as well as their machine-readable descriptions through the use of XML. Web services can be combined to achieve complex operations.

web service diagram

The diagram above shows a very simplified view of how a web service works. The client invokes a web service call by sending a request to a server which hosts the actual web service, then get the response from the web service.

What are different types of web services?

Web services can be deployed in several ways. The following web-services are the most commonly used http web services:

♦ SOAP (Simple Object Access Protocol) — in fact, it is a triple of standards SOAP/WSDL/UDDI

 REST (Representational State Transfer) – quite often called as RESTful API (Application Program Interface that uses HTTP requests to GET, PUT, POST and DELETE data) or RESTful web service – is based on (REST) technology.

Actually, SOAP originated from XML-RPC (XML Remote Procedure Call) and is the next generation of its development and evolution. While REST is a concept, based on an architectural style.

Of course, there are other types of web services, but since they are not widely used, we will focus on these two in this brief review: SOAP and REST.

A Quick Overview of SOAP Web Services

SOAP stands for Simple Object Access Protocol. It is an XML-based protocol for accessing web services.

It is platform and language independent. It means that by using SOAP, you can interact with other programming language applications.

Initially, SOAP was primarily intended to implement a remote procedure call (RPC). Now SOAP is used to exchange arbitrary messages in XML format, not just to call procedures.

Like any text protocol, SOAP can be used with any application layer protocol: SMTP, FTP, HTTPS, etc., but more often SOAP is used over HTTP.

All SOAP messages are structured as an envelope (is the root element in every SOAP message), including the following elements:

  • Message ID (local name)
  • Optional Header element
  • Mandatory Body element (message body)

Structure of SOAP message:

SOAP message structure

The expanded list of SOAP message elements is shown in the data schema (for SOAP version 1.2).

A Quick Overview of REST Web Services

REST stands for Representational State Transfer. As it was mentioned above, REST is not a protocol but an architectural style built on existing standards that are well known and controlled by the W3C consortium, such as HTTP, URI (Uniform Resource Identifier), XML and RDF (Resource Description Format).

In a REST services, the emphasis is placed on access to resources, and not on the execution of remote services; this is the fundamental difference from SOAP-services. However, the remote procedure call is also applicable to REST. It uses the PUT, GET, POST, and DELETE methods of the HTTP protocol to perform tasks. The cardinal difference between REST and SOAP is that REST remains an HTTP request.

According to many developers, SOAP is cumbersome and difficult to use. REST is an easy alternative.

REST is using the URL approach. Often, to make a request, REST relies on a simple URL Instead of using XML.

Advantages of REST Web Services

REST is more flexible and easier to use for the most part. There are following advantages when:

  • Agile: Unlike SOAP, there is no strict specification for REST Web services and it consumes less bandwidth and resources, thus, REST Web services are very fast.
  • Language and Platform independent: REST web services can be written in any programming language and run on any platform.
  • Can be used with different data format: REST web service permits different data format such as Plain Text, XML, HTML, and JSON.

SOAP vs REST what to choose?

SOAP is more applicable in complex architectures where interaction with objects is beyond the scope of the CRUD model. In applications having the CRUD model, it can be quite applicable to REST due to its simplicity and transparency.

In fact, if any objects in your service do not need a complex relationship than: “Create”, “Read”, “Update”, “Delete” (usually in 99% of cases is enough), it is possible that REST will be the best choice.

In addition, REST compared to SOAP can be more productive because it does not require parsing complex XML commands on the server (regular HTTP requests are performed — PUT, GET, POST, DELETE).

EDI2XML HTTP service

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

You can start with less than an hour

 No contract: pay as you go

Very simple and dynamic pricing scheme

Availability and reliability

Based on proven technology in the field for over 18 years now

Outstanding technical support

Our EDI Web Service solution solves developer’s problem because we have over 18 years of expertise in EDI, that is difficult for every developer and integrator to acquire quickly.

You can start with the free 15 – days trial of EDI2XML Web Service to see how real-time translation services works.

EDI Web Service for edi integration


Related Posts:

What is EDIFACT? | UN / EDIFACT standard overview

EDI ANSI ASC X12 Standards – Technical Overview – 2020

EDI Integration of B2B e-commerce for small companies


This post was updated to reflect current trends and information.


At the end of a discussion we had with one of our contacts, who was inquiring about EDI, Salesforce and how to integrate it all together, I decided to write this article, in order to clarify and structure my arguments with the hope it can help other readers who might fall on this article having the same questions and concerns. I will start by defining some technical terms, prior to getting to the points.

What is Salesforce?

Salesforce is one of the most popular cloud-based CRM. The company is based in California (USA), and it has thousands of users worldwide. We’ve already written an article that provides more about the product, which I invite you to read, and learn more about salesforce itself, and how Magic xpi can be the best integration platform with Salesforce.

What is EDI?

Electronic Data Interchange or (EDI) is fundamentally a standard that regulates the electronic exchange of business documents between trading partners. EDI contains a set of message types. There are many different EDI standards i.e. X12, EDIFACT, RosettaNet…used mainly in different industries and different parts of the world. In North America, the US standard ANSI ASC X12 is p predominantly used.

Some example message types are:

Help: What is EDI2XML as a Service?

EDI2XML as a Service is our popular translation and communication service offering to businesses of all sizes, from various industries. 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.

Download our EDI2XML Translation Service Pricing Package here for more information

Why EDI Integration with Salesforce is Important

Companies of all sizes have different systems in place: i.e. ERP, CRM, Warehouse management…Some other companies might only operate their business using Salesforce.

It is a common situation that companies will have business partners requesting to exchange EDI (regardless of the standard), with them. The truth is that companies’ can NOT refuse such a request coming from a customer for example. They have to comply with such demand and become “EDI ready” or “EDI compliant”.

In a such scenario, the company running Salesforce will be receiving a Sales order (850 as an example) and sending back and invoice (810) for billing purposes, all in X12 standard (for example). What to do about this requirement? Companies need to take action.

Why You Need to integrate EDI into Salesforce

Given the above facts and considering that Salesforce “out-of-the-box” does NOT support any EDI standard, there is no choice for a company leveraging Salesforce, to escape the integration request.

Ultimately, businesses need to Integrate EDI into their Salesforce instance. By pushing EDI messages into their Salesforce instance in a near real-time basis, companies can achieve even more with the Salesforce system.

“Need Integration” Checklist

Each company is unique, and it can be a lot of reasons why your business needs Integrations. Following are the most common reasons a company might need to consider, in order to jump into integration projects:

– Your trading partner(s) is requesting to exchange data electronically

– Your company gets a lot of orders (200+ orders a month on average), this is being taped manually in different systems, thus taking lots of time of your employees, and creating inefficiencies.

– You are looking for a better experience with your customer. You need to get your inventory out that always exact, tracking numbers are received instantly after the merchandise is sent, etc.

– You do not have enough time to process orders. Your costumers need to wait for order processing.

– As third-party sellers, you are getting penalties from Amazon, eBay, and other marketplaces for the reason that you are not shipping orders fast enough.

– Your company receiving negative reviews from your customers who shop online, because of slow service or erroneous orders processing.

What to do Next to integrate EDI and Salesforce

Integrating EDI with Salesforce, is a bit different from other types of integration projects, a company might go through. Due to the fact that EDI is very specific, it requires very specific expertise. Here are some of the important points to consider before going into EDI integration projects:

  • For EDI integration in general, work with an EDI provider, and NOT with VANS (Value Added Networks). VANs are more expensive and less into integration.
  • Make sure the EDI provider is “integration oriented”; meaning he is not only specialized in EDI, but in integration as a concept
  • Do NOT settle half-way with “file integration”, look for near “real-time” integration, directly into your system.
  • Do NOT settle with point-to-point integration”. Developing and “coding” integration points, is very expensive to maintain at long term.
  • Look for the best integration method: look for certified connectors from the manufacturer (salesforce).

Integrate EDI with Salesforce to drive your business

If you need more information or help in determining your need in EDI to Salesforce Integration, please contact our integration experts, and Feel free to request a free demonstration.

EDI Salesforce Integration

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.

cta_edi2xml

This post was updated to reflect current trends and information.


As the Amazon Marketplace becomes people’s go-to for online shopping, I am asked about this successful eCommerce platform and why should e-retailers embrace EDI when selling on Amazon.com. Other great questions from business people include, “Why is it so important to go that route versus using Amazon Web Forms? What are the benefits to be on EDI? What are the steps that a company needs to follow, in order to become EDI-ready?”

To answer the above questions, I decided to write this article and share my experience. This can be helpful to a lot of business people such as executives and business owners and Amazon Account Managers, who most of the time have limited information about eCommerce integration and the use of EDI to simplify their business flow and processes.

What is Amazon.com?

Amazon.com is the pioneer in online retailing and now third largest retailer, behind Walmart and CVS. Amazon has truly come a long way: starting out as an online bookseller, this online marketplace now sells everything, from “A to Z”. In 2017, Amazon acquired Whole Foods Market for $13.4 billion, which vastly increased Amazon’s presence as a physical retailer. The acquisition was interpreted by some as a direct attempt to challenge Walmart as a physical store (As per Wikipedia https://en.wikipedia.org/wiki/Amazon_(company) ). Amazon, as an eCommerce platform, has a presence everywhere (Amazon.ca, Amazon.uk, etc.) and is capable of delivering in almost every country. For more information, you can visit their site and learn more.

Here’s a bit more background on Amazon.com

  • Amazon is known to be “customer-obsessed”; they focus on selection, price and convenience to “build a place where people can come to find and discover anything they might want to buy online” (Amazon’s Mission Statement)
  • They are solely an online eCommerce store (eStore)
  • On Cyber Monday in 2019, it was reported  Amazon sales of $9.4 billion in wider retail.
  • Amazon has acquired Zappos in 2009 and recently acquired Whole Foods
  • It owns 10% of North American eCommerce – which includes Office Depot, Staples, Apple and Walmart

There are 310 million active Amazon customer accounts worldwide, 90 million of which are Amazon Prime members, many companies are looking to sell their products on Amazon.com. Who wouldn’t want to when Amazon is the KING of eCommerce Stores with roughly 175 million monthly visitors or potential buyers – the largest online marketplace.

Creating an Account & Selling on Amazon.com

Selling on Amazon is quite simple and quick to achieve. It takes few moments to create an account on Amazon.com either personal or business account, setup your items and start selling. Amazon themselves provide a payment gateway solution and all kinds of logistics and assistance to make sure your products are sold and delivered to consumers. One thing for certain, every seller should work and respect Amazons’ own terms and conditions and pay the monthly subscription fee along with the selected program fees.

Managing your Profile on Amazon.com

Part of Amazon’s offering in the eCommerce platform is that they provide an easy “back office” interface, called Vendor Central (for 1P sellers), where brand administrators can add items to the platform, prices, stock availabilities, product descriptions and more. In this same interface, the admin can manage orders received from consumers, updates item statuses and shipment details.

What else is on Amazon Vendor Central?

One of the options provided by Amazon Vendor Central is the ability to set some type of integration between your business software system and your Vendor Central Interface using EDI. This is a very important feature offered at no additional cost to sellers, so that they can integrate their day-to-day orders received from their Amazon store into their Software Management System and vice versa.

Amazon Vendor Central vs EDI Integration

As highlighted in the previous section, the Vendor Central provided by Amazon allows you (as an account and eCommerce store owner) to manage every aspect of your store, manually. This process depends on human interaction and intense manual labour work.

The ability to transport and integrate your data between your software system and your Amazon account in both directions (in and out) is uniquely done through EDI. Meaning when you want to extract an order from Amazon and automatically integrate into your JDE, SAP, Sage or any other system, the only way to do so is using EDI integration. Whenever you need to push new Items, SKUs, pricing ….to your store on Amazon, EDI is the only way to do so without having to manual key in all of this data.

When should you embrace EDI with Amazon?

Selecting the EDI route and becoming compliant with Amazon is truly worth the investment, when the following criteria is met:

  • An overwhelming number of SKUs are being sold on the Amazon Marketplace
  • Your SKUs and items sold on Amazon are dynamically changing periodically which makes it very difficult and time consuming for a human to manage it all manually
  • Your number of orders generated on Amazon are exceeding 15 per day. Why is the magic number 15 orders? This is due to the fact that the window to ship those orders out to your customers is very narrow, about 24 to 48 hours. Therefore, managing this amount of daily orders manually can lead to a ton of human errors and in turn, penalties by Amazon.

What are the top benefits to be on EDI?

There are many benefits to be on EDI when selling on Amazon:

  • Reduced human errors in data entry
  • Increased capacity to deliver quickly and on-time
  • Increased response time when issuing advance ship notices for orders placed on Amazon
  • Increased scores/reviews and happy customers on Amazon
  • Ability to quickly and efficiently update your inventory status from your current software or ERP (i.e. JDE, SAP…) into your Amazon account without the need to even login to Vendor Central

Stay on the lookout for part 2 of this article where I dig deeper into the steps that a company needs to follow in order to be EDI compliant with Amazon. In the meantime, feel free to reach our EDI integration experts today to help you with your Amazon integration needs.

Amazon Integration


For more information on Amazon integration, please read these articles:


This post was updated to reflect current trends and information.

 

Purchasing tickets, gifts, clothes, equipment and even groceries can now all be done online. Due to its accessibility and convenience, most of us already buy products online, from anywhere at anytime, using a smartphone or laptop, so long as we are connected to the Internet. Simple user interface, quick actions and results: everything is so easy that it only takes a few minutes. This explains why the number of online shoppers is growing at a tremendous rate, year after year. For example, the number of online shoppers in the United States alone is estimated to be 230.5 million by 2021 as compared to 215.4 million in 2017.

Online shoppers USA

Source: The Statistics Portal “Statista”  

The above graphic displays statistics about online shoppers who browsed products, compared prices or bought merchandise online at least once during the corresponding year.  Notice an increase of online buyers year over year due to the active introduction of Omnichannel retailing.

What is the omnichannel retailing?

 

Omnichannel is a cross-channel business model that companies use to improve their customer experience. “Omnis” can be translated from Latin as “existing everywhere”. In our case, covering all channels of communication with customers: as physical locations, online store, social media, live web chats, mobile applications, and telephone communications. The customer accesses all products and services in the most convenient way for him, while being always visible to the retailer.

Setting up your online store

 

Opening an online store in today’s digital world is NOT difficult; however, running the operations of an online business is of course a little more challenging. Here are some of the undeniable advantages of running an online store:

  • There are no rental fees
  • You need fewer employees to operate the store
  • Companies can overcome geographical limitations
  • Best of all, it is open 24 hours a day, 365 days a year

Use the best e-commerce practice

 

In order to not be left out of the e-commerce game, you should give great attention to detail and look for the best practices in operating your e-commerce business. On the Internet, there’s a ton of great advice for entrepreneurs who have started their online business already; it is about choosing an e-commerce platform, optimizing the page load speed, creating unique content, promoting the products, and the list goes on…

However, there isn’t much information out there that talks about the technical and logistical aspects of running an online store. Critical information that e-business owners should know are things like how to exchange documents electronically between your e-business and trading partners or transport companies. There’s also the important e-commerce practice of integrating your systems and electronic exchange of data (or EDI) in order to improve speed, accuracy, quality of information and overall business efficiency.

The role of EDI integration in logistics and e-commerce

 

The term “logistics” even in the traditional retail sense was not always so clear-cut and far from being obvious. Business logistics can be defined as:

Definition of business logistics

When running an e-commerce business, regardless of which supply chain management methodology you choose (Drop-Ship or other), you will have to face a substantial amount of business related documents that you need to exchange with your trading partners.

Now, let’s do a simple calculation: how much time do your employees spend on order entry, shipping advice, invoices, generating labels? What is the error rate? Maybe that’s why the rate of returns of online sold products is sky-high. Research about e-commerce product returns shows:

statistics online return

Online return reason

In my opinion, the statistics shown above reflecting e-commerce product returns looks frightening… Is it possible to reduce the above percentages?  Can your online business avoid those errors?

EDI integration improves the quality of the data by at least 30% to 40 % reduction in the transactions containing errors, by eliminating unreadable writing or typing errors, the losses of faxes/mail, transmission, and re-manipulation of errors.

Think and manage your online business better

 

The positive effects of EDI Integration will be measurable across all of the following services: commerce, production, logistics, and finance.

In sales:

  • Sales cycle and quality of the relationship with your customers are improved and processing times reduced (reliability and efficiency of exchanging orders, shipping advice etc. …)

In production:

  • Reduced production costs
  • Better management of your stocks
  • Short production times

In logistics:

  • Reduced processing times for shipments
  • Elimination of anomalies or errors
  • Elimination of paper documents
  • Strong improvement in the quality of information

In finance:

  • Reduced billing times
  • Reduction of disputes

In conclusion, moving forward with an EDI integration project gives a business the access to an undeniable competitive advantage; companies are able to reduce the costs of its products and services, improve business processes and meet the demand of customers and suppliers. What’s better than that?

Keep learning about EDI integration and the MANY benefits it has for your online business by visiting our website EDI2XML.com or contacting us directly today!

Free EDI Consultation

 


This post was updated to reflect current trends and information.

With the evolution of eCommerce in the last few years, EDI integration is getting more and more widespread in the e-retail vertical. This trend is due to the heritage of the traditional retail businesses. Why is this happening and how EDI is helping e-commerce retail stores?

According to Statista.com, in 2016, retail e-commerce sales worldwide amounted to 1.86 trillion US dollars and e-retail revenues are projected to grow to 4.48 trillion US dollars in 2021. Online shopping is one of the most popular online activities worldwide.

Therefore, today, e-commerce sales is one of the segments of the economy with a huge development potential.

e-commerce-sales-worldwide-from-2014-to-2021

 

What are the most popular e-commerce platforms in 2019?

Plenty of e-commerce platforms are available on the Internet, but the most popular and most effective in 2019 market are the following:

Shopify  Shopify
Bigcommerce bigcommerce
Magento  Magento
WooCommerce  Woocommerce
Volusion  volusion

If you look at the comparative table in Google trends, you will see that Shopify is the leader in terms of how many businesses use this platform for their own eCommerce, versus how many they show interest in the other e-commerce platforms.

google-trends-e-commerce-platforms

 

How many Stores are using Shopify?

Launched in 2004 Shopify is one of the leading Canadian e-commerce platforms, trusted by over 500,000 businesses worldwide. As new shops are signing up every day, the real exact number is higher. For more information abut shopify, you can visit their website.


Fully Managed Shopify Integration Service

We at EDI2XML eliminate the need for manual data entry using Magic xpi Integration Platform, we automate the most important business processes, ensuring data exchange between Shopify/Shopify Plus and leading ERP and accounting systems. LEARN MORE>


Boost your company’s productivity with EDI

Business owners, including e-commerce store owners, are all always looking for a better way to improve efficiency, and customer service in a very well connected digital world.

In that direction, the Drop-ship concept has emerged to become one of the top delivery model adopted with major ecommerce retailers. With this concept, consumers have access to a large inventory of goods, delivered directly from the manufacturer (most of the time). This is delivering a smooth shopping experience that is secure, convenient and comfortable.

In order for the ecommerce owners to compete in this new reality, their offerings of products and services, should be built in such an efficient way, where their items’ prices, stock and inventory availability, are all up-to-date right from their manufacturer’s system, in near real-time.

Their delivery schedules are also a factor: eCommerce stores should be equipped with real-time calculation of delivery cost and ETD, again right from the shipping or transport company.

EDI integration between an eCommerce platform and the manufacturers, in the drop-ship world, is one of the best options to accomplish the above objectives. EDI helps streamline the Supply-chain management and improve efficiency.

To know more about the reasons why you should integrate EDI with your Shopify eCommerce store, read our previous blog called “Top 3 Reasons for EDI integration with Shopify”

Benefits of EDI

It’s no secret to anyone that the traditional methods of document management are outdated, they are quite costly and can impede the interaction between trading partners. This becomes especially noticeable when the business grows.

 EDI interchange has existed for more than 30 years. Over the years, EDI has been tested and proven to work, in North America and Europe. EDI has repeatedly and most importantly demonstrated its effectiveness in reducing human errors and improving quality of information.

EDI is a major helper for online stores

EDI service translates into electronic format (or messages), the entire interaction between the eCommerce store, the supplier and the consumer – from the order to the signature of delivery documents.

The exchange of information takes place directly between the systems of trading partners, therefore, the influence of the human factor, and errors are at its minimum.

If you want to know more about EDI2XML translation, read this article on our website

EDI significantly simplifies and speeds up the logistics work: ordering, packaging, shipping and delivery.

Comparing eCommerce store to a traditional outlet store, the latter will have more constraints and limitations on stock availability and delivery methods: with an online store having EDI integration in place, this problem does not exist. All availabilities are up-to date right from the supplier’s system. An eCommerce store owner, with integration capabilities will not worry about having an “empty shelf”…he does not have to worry about hiring more employees to answer customer service calls.

EDI integration, empowers eCommerce online stores with the capability to reduce their costs, increase efficiency, improve stock availability and customer service.

If you are interested to learn more about this topic or any EDI integration related issue, don’t hesitate to Contact us for a free Consultation and we will be more than happy to answer your concerns and questions.

Free EDI consultation

This post was updated to reflect current trends and information.


EDI integration with Shopify

In short, Shopify is one of the leading Canadian eCommerce platforms offered to businesses and individuals, based on a monthly subscription fee. Anyone can subscribe and then begin to showcase their products online, to sell directly to the public. For more information about Shopify, you can visit their website here.

Who Uses Shopify?

Shopify is a popular e-commerce platform that can be used by individuals and businesses of all sizes to create and manage their online stores. Here are some of the types of people who use Shopify:

  1. Small business owners: Shopify is an excellent platform for small business owners who want to sell products online without having to deal with the technical aspects of building an e-commerce website.
  2. Entrepreneurs: Many entrepreneurs use Shopify to create and sell their own products online, whether it be clothing, beauty products, or digital downloads.
  3. Large businesses: Shopify’s scalability makes it a popular choice for larger businesses that need a platform that can handle high levels of traffic and sales.
  4. Dropshippers: Shopify’s integrations with popular dropshipping apps and tools make it an attractive option for dropshippers who want to sell products without having to hold inventory.
  5. Non-profits: Shopify offers special pricing and features for non-profits, making it an excellent platform for charities and other non-profit organizations to sell merchandise and raise funds online.

Overall, Shopify is a flexible platform that can be used by a wide range of people and businesses to create and manage their online stores.

A Word on Drop-Shipping

One important thing to emphasize here is that with the emergence of the online retail (or eCommerce) market, companies selling products through the Internet on platforms such as Shopify, are not necessarily carrying inventory of their products anymore.

More and more, once a company receives an online order from a customer (through the Shopify platform), these orders are then transferred to the manufacturing business partner(s) for shipping and delivery of the bought item(s), where they are told the “white label” the delivery package. This concept is called “Drop-Ship” (or Drop Shipping) in the retail and eCommerce world. Basically, the seller receives orders from their online retail store and is paid via the Internet (through PayPal or credit card) and then forwards the order to the manufacturer to then ship directly to the client. For many, there is now no need to hold inventory in a local warehouse.

What Does EDI Have To Do With eCommerce?

For those who aren’t very familiar with EDI (or Electronic Data Interchange), it is a set of standards and processes to exchange business documents electronically between Business (or Trading) Partners. Common business documents include Purchase Orders, Invoices, ASNs (Advance Ship Notice), Inventory Inquiry/Advice and more. This data exchange can happen in both directions – incoming and outgoing.

In the context of online sales over the Internet, on an eCommerce platform like Shopify as well as with the introduction of drop-shipping, EDI comes into play for several reasons;

1. Most major manufacturing and distribution companies will require a system-to-system integration through some sort of EDI. This speeds up processes and allows for greater efficiency in partner communication.

2. Shipping companies also require integration via EDI.

3. Today, consumers are very well educated and require to be informed on the status of their orders at every step of the way during the shipping process.

As you may notice, all of the above requires system-to-system integration between so many unrelated or diverse systems and platforms. At this point in time, most major companies and retailers are well equipped with EDI platforms and standards in which they have been investing in for many years now. Companies are now finding more ways to use their EDI to increase efficiency and are truly seeing returns on their investments.

Top 3 Reasons Why You Need EDI Integration With Shopify

The reasons may seem obvious to you at this point, but I will re-iterate the top 3 reasons for EDI integration with your Shopify store or any other eCommerce platform;

Cloud Services Provider If you are in the Drop-Ship business and you are selling online through Amazon, Wal-Mart, Cabela’s or Target, for example, chances are that these retailers will impose certain rules, and require that you go on EDI. If you are dealing with suppliers, they will also impose similar rules and require the use of EDI.

Cloud Services Provider If you are selling online through your own store via Shopify, and you have a high volume of clients that expect to the informed of their orders at any given moment, this is another big reason why you should have EDI integrated with your Shopify store.

Cloud Services Provider If you are dealing with shipping companies like FedEx, Purolator, UPS, etc., and you have a high volume of shipments on a daily basis, then you need to integrate your management systems AND Shopify with EDI.

The above are the main reasons for EDI integration but there are tons of other ways EDI can improve your processes and reasons to talk with an EDI consultant today.

How Can I Integrate My Shopify Store with EDI?

This integration is very feasible however you will most definitely need a team of system integrators with a high knowledge and expertise in EDI. With the right team like the EDI2XML team, there is no going wrong.

If you are interested in learning more about this topic or any other issue related to EDI integration projects, please contact us today and receive your free consultation.

Shopify integration

This post was updated to reflect current trends and information.

Article written by Pierre Namroud, EDI Integration Specialist & Business Consultant

I had the pleasure of attending Collaborate17, a Technology and Applications Forum for the Oracle community. This opportunity brought together Oracle professionals, integrators, project managers and IT experts from around the world, who all work in different spaces of integration. It was such a great experience speaking with so many Oracle experts and attending educational sessions.

One of the main points of discussion during the various speaking engagements was on the challenges that professionals were facing when it came to integration projects involving EDI (Electronic Data Interchange) as well as eCommerce data to JDE (JD Edwards). The opinions were unanimous in the sense that Oracle still has more work to be done in order to strengthen and simplify integration with legacy EDI protocols and build simpler integration flows for protocols such as X12, EDIFACT, Rosetta Net, etc.

I’m writing this article, in order to share my own expertise as a data and EDI integrator, where I had the chance to be involved in several eCommerce and EDI integration projects with Oracle JDE. Hopefully it will help inform other Oracle professionals looking to overcome some of these integration challenges.

Challenges currently being faced by Oracle JDE professionals

There are many challenges that any JDE professional might see when it comes to data and systems integration with Oracle ERP software in general, whether for on-premises or cloud systems. [As a side note, Oracle’s cloud systems have their own specific limitations that I recently learned about during one of the Collaborate Sessions].

Below, I have listed some of the most common challenges that not only have I experienced in my own projects with Oracle customers but that others have expressed during the Collaborate conference;

  • Oracle’s JDE does not have a seamless built-in integration with all EDI X12 documents “out of the box”.
  • The current integration process for EDI X12, EDIFACT, HL7 or any other data format now happens by writing into transition tables (or Z files) and then triggering a business function to process those incoming data.
  • Even though Oracle’s JDE system supports business functions, some older versions do not support new API functions, which can cause some headaches.

    Looking to integrate your EDI or eCommerce processes with Oracle JDE enterprise one, look no further, since we have the best integration option where we turn your Oracle JDE system into a modern REST API, that receives https requests and acts accordingly. Learn More>


Integration Project Checklist

Before starting an integration project with your Oracle JDE system, I recommend that you go through the following list of questions. This way, you’ll be able to make the best decisions to move forward with development efforts as efficiently as possible.

  • Who are the Business or Trading Partners you want to exchange electronic data with?
  • Which documents (or types of data) are you requested to exchange from your Business Partners? In normal circumstances, they’ll provide you with the necessary documentation and specifications as a road map and for compliance reasons.
  • The exchanged data will be sent under what format or standard/version? (X12, EDIFACT, RosettaNet, XML, custom format…?)
  • What is the protocol of communication used to send the data back and forth between you and your Business Partner? Is it point-to-point, such as AS2 or sFTP?
  • Is a VAN required in order to transport the data?
  • Do you have the necessary expertise to select the appropriate certified communication software (for first time project implementation)?
  • Do you have the necessary expertise in your development team to decrypt and understand the terminologies of legacy EDI formats?
  • Has your team ever done an EDI integration project, that includes a full certification process?
  • How many partners will you be exchanging with? The more partners you have, the more complex the project can become.
  • Check the specs of all of your partners (when possible) to verify the differences in their requirements. It is well known in the EDI integration world that there can be many distinctions and exceptions found per Business Partner and per document. Every EDI project can be unique.
  • What is the lead-time to complete the certification and testing phase with your business partner before going live?
  • What is the volume of exceptions that your development team can currently handle in the project in order to be on time and within budget?
  • Do you have the necessary integration tools to simplify the EDI syntax in order to work with one format regardless of the format of the data you receive from different sources?
  • Is your team coding directly in Oracle JDE native framework, or are you using any efficient integration tool available today?
  • Will you be doing end-to-end integration using Z tables of Oracle JDE, or you are going to use API (or business functions) of JDE?

Recommendations for a Successful Integration Project

As you might have noticed, data integration projects involving legacy EDI protocols or custom data format exchange are not simple. They are projects that need a lot of expertise and experience in data communication and transportation, data mapping and systems integration into Oracle’s JDE system.

Moreover, at most enterprises that we’ve completed EDI integration projects for, it was evident how stretched and overwhelmed the internal JDE development team was in their own day-to-day operations, support and maintenance of the application and were incapable of learning new standards to respect the strict timeline given by Trading Partners. In these cases, they looked for help from an outside Service Provider, such as EDI2XML.

My recommendations for such projects are as follows:

  • Outsource the EDI part of the project to a reliable Service Provider, who is highly focused on service availability and quality, since EDI is quite sensitive. This will allow your team to continue working on their daily tasks and keep doing what they do best (JDE support and maintenance, for example). This way, you’ll have a simplified and streamlined EDI integration process; you build one tunnel between your EDI provider, where they deal with the exceptions, and your own process.
  • In case your company policy requires you to deploy the EDI integration solution on-premises, make sure to use an efficient EDI conversion tool such as our EDI2XML technology that has the capability to turn the EDI documents from X12 format to a human readable XML format, for example.
  • Equip your team with the right tools for data integration such as Magic xpi, which we have been using for many years in our data and systems integration projects. Leveraging such technologies allowed us to integrate anything-to-anything (JDE to SAP, SAP to Salesforce, EDI to any system as examples).

I sure hope I was able to expose the most common EDI integration challenges and complexities and help you to overcome these obstacles with the above checklist and recommendations.

If you are interested in learning more about this topic or any other issue related to EDI integration projects, please click on the image below and I will be more than happy to contact you personally for a FREE consultation.

 

Free consultation ecommerce JDE integration

 


This post was updated to reflect current trends and information.

EDI integration projects


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

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

What is Drop Shipping?

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

The Rise of Drop-Ship Popularity

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

The Complexity behind Drop Shipping

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

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

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

Top 4 Challenges the Drop-Shipper Might Face

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

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

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

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

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

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

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

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

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

Overcoming Drop-Ship Challenges

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

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

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

Free EDI consultation

 

This post was updated to reflect current trends and information.



eCommerce platforms have been largely used by small and mid-sized enterprises, to sell their products and services to the booming consumer market (B2C) on the internet. Amazon and eBay for example, are among the most popular eCommerce platforms; for ease of operations and integration they offer different ways to exchange data between the trading partner and the platform. As an example, Amazon offers EDI integration capability, or Web service calls to exchange data or simple XML transactions. The most frequently asked question, by business owners, is: what is the best option to have a quick integration at a minimal cost with a maximum return on investment?

In this post I will explain the different integration mechanisms and share my opinion on how to decide which way to go. As a complementary article to this post, I invite you to read my previous post entitled Tips to Empower your eCommerce with great Supply Chain through EDI Integration to get more detailed advise about eCommerce and EDI integration to be able to build a strong SCM channel.

Let me start by quickly defining each of the above technical terms:

EDI

EDI is the oldest protocol used to exchange data between business partners. It has been standardized and heavily used for decades. It is very well ingrained in the manufacturing and retail verticals. Data in EDI format has a pre-defined format and structure. It is transmitted using different types of secured communication protocols (i.e. VAN, AS2, FTP, sFTP…).

Useful reading: What is EDI? 

 

XML

As defined by the W3Schools website , XML is a markup language much like HTML, meant to carry data, not to display data. It is designed to be self-descriptive, where users define their own XML tags to describe data. XML is a W3C recommendation. XML was created to structure, store, and transport information, in contrast to HTML that is meant only to display data in a web browser.

Since XML has been developed, it quickly became a popular means to transfer very well structured data between business partners. Thanks to its ease of use, and its descriptive aspect of the XML data format, it has been the preferred choice of many software vendors and applications used in integration projects.

Web services

Wikipedia defines a Web service as “a method of communication between two electronic devices over a network. It is a software function provided at a network address over the web with the service always on as in the concept of utility computing”.

Web services are designed to support machine-to-machine interaction over a network, using different protocols, by sending and receiving “messages” using HTTP and XML in addition to other web-related standards.

Now for the technical use and interpretation of Web Services, it is simply triggering the execution of a program or function remotely, using the internet, and returning the result to the caller. In addition, Web services use XML in different formats to send structured data back and forth. The advantage of Web services is that it uses the internet as a communication and transport protocol, in addition to the XML structured language to format the data transmitted back and forth.

If you want to know more about  different types of web services such as SOAP and REST and why EDI developers prefer use RESTful services, read our new article: Seamless EDI implementation through Web Services

Useful reading: What is EDI2XML web Service?

 

eCommerce integration

eCommerce integration means the process of sending data from the eCommerce platform to an external system or platform, and receiving data into the eCommerce platform using an automated process. Integrating your ERP system or a company’s CRM system with the eCommerce platform enables the necessary data to be sent in both directions so that both systems can interact in a seamless way, without the need for human intervention. This will improve efficiency and enterprise capabilities to serve clients faster.

Useful reading: Tips to Empower your eCommerce with great Supply Chain through EDI Integration

How to select an integration method and what is the best option

In my opinion, there is no single rule when selecting an integration method. Any business owner, executive or integration consultant should ask the following technical questions before selecting a technology and protocol to integrate their eCommerce platform with their own system:

  • What’s the expertise of my integration team?
  • Are they familiar with EDI format and protocols as well as its business flow?
  • Are they more familiar with XML and web services?
  • What are the additional technical advantages that the enterprise would gain by selecting one versus the other?
  • Are these advantages important issues for our business?
  • What are the add-on costs for both options?

Basically, the decision comes down to evaluating the level of expertise of the integration team and their zone of technical comfort. From a technical perspective, there isn’t a perfect option. Of course, the business aspect of the decision is a major factor and sometimes, business reasons might outweigh technical reasons.

If you need more information or would like to discuss your eCommerce integration needs, I will be more than happy to provide a free 1-hour consultation.

EDI Web Service for edi integration