An EDI project involves implementing electronic data interchange systems to automate data exchange and improve collaboration with trading partners.

Tag Archive for: EDI project

The Top 6 EDI Documents for Retail Suppliers

In this post, I’ll give a brief overview of the top 6 EDI transactions used in the Retail industry, the main differences between documents exchange via EDI and email, and how you can quickly satisfy the request of a large retailer (such as Walmart, Target, Costco) about EDI compatibility and start exchanging EDI documents fairly quickly.

What is Electronic Data Interchange (EDI)?

EDI is a protocol to exchange business information between two organizations electronically based on a predefined standard. EDI has replaced the use of paper documents or the exchange of business information by email.

EDI in the Retail Industry

Electronic Data Interchange (EDI) has been widely adopted in the retail industry to facilitate efficient and accurate communication between trading partners. EDI is the electronic exchange of business documents between two or more organizations in a standardized format.

The retail industry has been using EDI for over 30 years. Can you imagine the volume of business documents flow at large retailers? They have thousands of transactions every month with hundreds of suppliers and tens of thousands of products.

For such large trading companies, it is simply impossible to do business without exchanging EDI. That is why they force their suppliers to exchange documents through EDI.

What is a Retail Supplier?

Supplier is any legal entity (organization, enterprise) or individual that provides goods to another entity. Retail suppliers are business-to-business (or B2B); they sell products to other companies, and not directly to the consumer.

Suppliers can be manufacturers, as well as various resellers (including wholesalers).

The supplier carries out business activities by the terms of the concluded supply agreement.

Giant retailers such as Best Buy, Wal-Mart, Costco, and Target have supply agreements with many different suppliers from whom they buy goods in bulk and then sell them to the final consumer in their stores or online stores.

What is the Difference Between EDI and Email?

email and EDI

Let us make a comparison between sending a purchase order from a Retailer to a supplier by email and another one by EDI. Here are some major differences:

1. Transfer or exchange of business information

Both methods have secure communication channels, however, EDI communication channels use higher security standards.

2. Standards and structure

The content of the email is not structured at all. There is no standardization when placing a purchase order via email. Thus, the supplier needs to check many elements such as subject, message body, attachments, because the information about the purchase order can be either in the body or in one or multiple attachments.

The content of an EDI Purchase Order (EDI 850) is very well structured, and it conforms to a specific standard (i.e. X12, EDIFACT, …). Each element and loop have a pre-defined purpose.

3. The ability to integrate with business systems (ERP/CRM)

Extracting the data “automatically” from an order coming by email is very difficult (not to say extremely difficult), while extracting the purchase order information from an EDI X12 850 for example, or a UN/EDIFACT ORDER is much more standard.

As a conclusion: exchanging business documents complying with EDI standards, enables companies and business partners in the retail to automatically integrate data into their internal business systems, efficiently and with great accuracy without human intervention.

Commonly used EDI Documents in Retail

e-commerce Integration

Large retailers using EDI can standardize the process with their trading partners, thereby improving all business processes, increasing profits and customer satisfaction. For all size suppliers, the use of EDI gives access to large retailers and therefore a stable volume of orders. Let us look at the main EDI transactions used in B2B trading between retailers and suppliers.

1 – EDI 846 – Inventory Inquiry/ Advice | EDIFACT INVRPT

EDI 846 (EDIFACT/INVRPT – Inventory Report) is a notification that the supplier usually sends to the retailer, which contains information about the availability of goods. This EDI transaction is used to inform your trading partners (retailers) about stock levels but does not oblige them to make a purchase. Usually, EDI 846 also includes pricing information.

For more information about EDI 846 read our article: What is EDI 846 document?

2 – EDI 850 – Purchase Order | EDIFACT ORDERS

EDI 850 (EDIFACT/ORDERS) is an electronic document that is used to place an order for goods.

EDI 850 is usually sent by retailers to their supplier of goods. This document indicates the quantity of the required goods as well as all the details regarding the order (Item description, price, and quantities, shipping details, requested delivery date, and location(s) of delivery).

If you want to know more about EDI 850 read the article: All you need to know about EDI ANSI X12 Transaction Set 850 Purchase Order

3 – EDI 855 – Purchase Order Acknowledgement | EDIFACT ORDRSP

The EDI 855 (EDIFACT/ORDRSP – purchase Order Response) is a reply to the message (EDI 850). It is sent by the supplier after receiving the order from the retailer.

By returning the 855 messages, a supplier agrees to fulfill the order or proposes to amend. In other words, using EDI 855, the supplier either notifies the full, partial, or refusal to fulfill the order. This message helps the retailer avoid supply disruptions.

You will find detailed information about EDI 855 in this article: What is EDI 855 Purchase Order Acknowledgment?

4 – EDI 856 – Advance Shipment Notice | EDIFACT DESADV

EDI 856 (EDIFACT/DESADV – Despatch Advice)  is a notification sent by the supplier immediately after the shipment of the goods leaves its warehouse.

The idea behind this message is that the retailer may know in advance about the fact that the products have been loaded, its quantity, and the expected delivery date. This way, he can efficiently plan the receipt and scanning of the goods at his warehouse.

You will find detailed information about EDI 856 in this article: What is Advanced Ship Notice (ASN) 856 transaction set?

5 – EDI 861 -Receiving Advice/Acceptance Certificate | EDIFACT RECADV

The EDI 861 (EDIFACT RECADV – Receiving Advice) acts as a response message to EDI 856 which confirms the acceptance of the goods.

Acceptance is communicated from the retailer to the supplier. It indicates there is a discrepancy between what was sent by the supplier and what was received by the retailer and details the list of goods received.

Besides, the retailer can provide additional information such as information about damaged items during transportation, etc.

Complete List of EDI Transactions, Sets & Codes for ANSI ASC X12 Standard

6 – EDI 810 – Invoice | EDIFACT INVOIC

EDI 810 (EDIFACT INVOIC – Invoice) is an electronic document provided by the supplier to the retailer to bill for the goods delivered. EDI 810 contains a list and description of goods, their quantity, and price, as well as information about the sender and recipient.

For complete information on EDI 810 read this article: What is an ANSI ASC X12 EDI 810 invoice?

These are some of the most commonly used EDI documents in the retail industry, facilitating efficient communication and transaction processing between trading partners.

EDI flow in the retail industry

Let us look at a typical EDI flow between trading partners (where the retailer acts as a buyer) in which the top 6 EDI transactions described above are involved.

1. The supplier sends or feeds the retailer his inventory status, to inform about the availability of goods – Inventory Inquiry/ Advice (EDI 846).

2. The retailer sends the Purchase Order to the supplier (EDI 850).

3. The supplier checks the availability of the goods in the warehouse and sends the Purchase Order Acknowledgment (EDI 855), in response to the Purchase Order.

4. The supplier immediately after shipment of the goods, generates and sends to the retailer an Advanced Ship Notice (EDI 856).

5. The retailer, after acceptance of the ASN received from the previous step, generates and sends the supplier a Receiving Advice/Acceptance Certificate (EDI 861).

6. The supplier, based on the above acceptance notifications, generates an Invoice (EDI 810).

This EDI flow is considered for the case when the trade agreement between the retailer and the supplier has already been concluded, and the retailer has a list of goods from each supplier in its business system.

Benefits of using EDI

EDI has long been an integral part of B2B especially in the retail vertical. Using EDI to exchange business information provides many business benefits to both large and small businesses. Here is a short list of those benefits:

Speeds up workflows

You can send any document in seconds.

Prompt exchange of documents speeds up the process of ordering and delivery of goods. The main benefit for the retailer is the uninterrupted replenishment of goods. For the supplier, a quick payment for the delivered goods.

Saving resources and time

No need to use operators for manual processing of business documents, duplicate on paper, store, send by mail, or courier.

One standard for everyone

EDI makes it easy to start selling to large retailers. Exchange EDI documents without worrying about format differences and compliance with business systems (ERP /CRM) of your trading partner.

Accelerate the acceptance of goods

When EDI is integrated into the retailer’s business system, data from suppliers goes directly to the accounting system. Thanks to automatic item matching, goods are accepted very quickly. The process of accepting the goods is quick and easy.

Reduces risks

EDI eliminates errors associated with manual data input, as well as the loss of documents.

Secured data transmission

EDI documents are transmitted over secured channels in encrypted form, or through private value added network, no concern about data breach.

About EDI2XML services

EDI2XML offers a wide range of EDI services to automate the exchange of documents between all parties in the retail and transportation industry, whoever they are: retailers, suppliers, shippers, consignees, and transport companies.

We help your company get started on exchanging EDI with your partners in a fairly and relatively short period of time, and on budget. Whether adopting our Fully EDI managed EDI Service or our EDI2XML self-service Web service, we can empower your company with the ability to send and receive any type of electronic documents such as Purchase Order (EDI 850) PO Acknowledgment (EDI 855), Invoices (EDI 810), ASN (EDI 856) and many more.

Useful Reading: Fully managed EDI service VS HTTP Web Service: Which is Better for Your Business ?

Contact us for more information and a free consultation.

Free EDI consultation

How to solve Shopify eCommerce integration with EDI

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This post was updated to reflect current trends and information.

 

ECommerce (or online retail) has been a growing trend over the last few years. Due to this, business partners, retailers and suppliers have been transforming their flows and processes in order to better serve today’s well-connected, tech-savvy and wise consumer, who is constantly plugged in to the latest technologies. Read more

What you need to know about EDI integration in JD Edwards World

EDI integration project into JD Edwards (JDE) system.


The same questions and concerns keep arising when designing the requirements for an EDI integration project into JD Edwards (JDE) system. As I have been involved in my fair share of EDI integration projects, I have witnessed companies struggling with integrating EDI in JDE systems. I’ve decided to share my experience, not as a JDE expert but as an EDI integration expert and consultant, to help those with this kind of project. Let’s begin…

Why EDI integration is important

More and more companies are adopting different communication protocols to exchange business-related messages electronically. Today’s business environments are working harder to be well connected with outside parties for improved communication. It is almost impossible nowadays for a company to trade and do business without having the capability to electronically exchange messages and important documents with its suppliers and customers. This is why EDI has gained tremendous attention in recent years; businesses, no matter how large or small they are, are looking to receive EDI documents (i.e. customer orders) and send out responses such as invoices, or advance shipping notices (ASNs).

On top of this, with the expansion and popularity of eCommerce (electronic commerce), businesses have no choice but to integrate EDI into their systems as consumers expect quick response times in providing more accurate inventory availabilities and quick order processing for better customer service.

All of the above make it almost impossible for any company to ignore electronic processing of sensitive data, all in real-time. However, what’s been challenging for most, is that various business partners adopt different EDI standards, some even choosing a “custom made” version, which all adds new layers of complexity to an EDI integration project in JDE and more pressures to comply with tons of different EDI standards (i.e. X12, EDIFact, XML, CSV,…).

Benefits of integrating EDI into a company’s system

EDI has been around for quite some time now. At this point, there’s no question about the real benefits that come from using this B2B communication method. Companies are seeing more advantages and improvements when they integrate EDI transactions (incoming and outgoing) into their management software system. Some of these EDI integration benefits include:

  • An increase in a company’s response time and a decrease in their fulfillment cycle
  • Increased information integrity and a reduction in errors due to the elimination of manual data entry and human intervention
  • Fast and accurate delivery of goods and services

There’s no doubt that companies gain a competitive advantage by successfully integrating EDI into their management system. They are better equipped to handle more orders and have no problem doing business with large retailers who expect electronic messaging. 

How EDI processing works in JD Edwards

Let me give a quick description of the EDI processing cycle in JDE, as described by Oracle’s own documentation of the JDE system.

“When you receive inbound documents, the translator software retrieves the data using network communications and translates the data from EDI Standard format to JD Edwards World application file format”.

Here is a simple drawing posted in their online documentation:

EDI processing cycle in JDE

In simple terms, when a company running JD Edwards World or its previous version (Enterprise One) needs to process EDI data received from a business partner for example, the data will go through different stages:

  1. A communication software (a third party software) would connect and get incoming EDI files using network communications.
  2. The translator software translates the data from EDI Standard format to JD Edwards World application file format.
  3. Once the above two steps are completed, the system 47 of JD Edwards application, will take the data from the JDE flat format to JD application files.

JDE has its own EDI (Electronic Data & eCommerce) integration module. This module, can be configured to integrate EDI data formatted in JDE acceptable format and turn it into JDE application files. While doing so, tons of automatic triggers are fired up, such as billing address, items and pricing verification. In addition, error reports are generated and email alerts are sent.

Unfortunately, the file format that JDE is capable of processing is still a flat file format. I invite you to read this article where the author had explained a lot about JDE EDI integration and its file format.

It is important to know that the user must complete several tasks in order to customize the Electronic Commerce system to interact with your other applications and to fit your company’s needs, as per JDE’s online documentation.

Challenges with EDI integration in JD Edwards World

As I mentioned at the beginning of this article, there are many challenges that business executives struggle with when deciding to implement EDI and integrate it into their JDE system. I will highlight the most important ones and give my recommendations as an EDI integrator and expert on the topic.

Writing directly in JDE application file or using the EDI interface module

A very good question that comes up regularly is “Should we plan the integration engine to translate and write DIRECTLY inside the JD Edwards World applications files or use the Electronic Commerce module in JDE?

I personally recommend to work with the EDI module of JDE for the following reasons:

  • Out of the box, it works well once the right data in the appropriate format is provided to the engine.
  • Obviously, in the beginning, your JDE team will need to spend some time and effort setting things up; they can either do this all themselves or with the help of your EDI consultants.
  • Out of the box, when set up is completed correctly, the JDE engine is capable of taking the data and passing it through tons of validation steps (i.e. price, items, billing instructions…) prior to moving the clean data to JDE application files, without any human intervention.
  • Please note, however, that if you choose to have the EDI integration engine write directly to the JDE application files, a new JDE update or application upgrade can result in potential damages to this process. Upgrading the JDE application will require a full cycle of QA to make sure the integration engine of EDI into JDE is still working 100% efficiently.

Exchanging and translating XML, JSON, and other non-Flat File formats

The other challenge many have faced is knowing how to enforce JDE with the capability to translate non-standard EDI files such as XML, JSON or any other format given the fact that JDE’s EDI module is only capable of integrating with one single file format (more specifically a Flat file).

My recommendation would be to adopt a strategy where any file no matter its format received from your Trading Partner is automatically translated into a single format that is acceptable by your JDE EDI module, prior to initiating the process in JDE. I know it may seem difficult to achieve for such a mechanism considering the level of limitations provided by JDE, but this option is more feasible than you may think. I will go on to explore this possibility in the following section.

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>

What is the best option to integrate EDI in JD Edwards

Having listed the major challenges above, it is clear that the best option for a seamless, simple and quick EDI integration with your Trading Partners or your eCommerce platform is to adopt one single protocol of communication between your outside world and your JDE system.

In fact, Oracle’s JDE team have anticipated for such a protocol. They refer to in their documentation as the “translation software (third party)”.

I understand that managing a third party translation software internally by your team will add another layer of complexity, additional resources and expertise, not accounting for the countless number of EDI file formats found in today’s business world: TXT, CSV, EDIFACT, X12, XML, Json, etc.

You’re in luck though! There are a few companies out there, like Namtek Consulting Services, that can outsource the job of managing your translation software. Our EDI2XML cloud integration platform can act as your translation software; it can turn all your incoming files, no matter its format, into one format that your JDE loves to work with. The opposite works for outgoing files; your JDE-preferred format is easily and automatically converted into the specified format of your Trading Partners.

What challenges have YOU faced regarding EDI integration into your JD Edwards World system?

Free consultation ecommerce JDE integration

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

 

This post was updated to reflect current trends and information.


The term “eCommerce” is generally understood as the process of selling products and services over the Internet. However, there is much more that happens behind the scenes of an eCommerce Store. Business transactions such as electronic data interchange (EDI), supply chain management and funds transferred are all part of this online store, as it involves the exchange of all kinds of business transactions to keep the business running smoothly. In this article, I will dig deeper into these hidden eCommerce business transactions. To learn more about the positive effects an online store has on a company, read this blog written by my colleague.

Supply Chain Management (SCM)

Supply-Chain-Management-SCM

In general business terms, SCM is the management of the flow and movement of finished goods from point A, where goods are produced and stored, to point B, where the goods are consumed (final destination).

There are many elements, parameters and interconnecting networks involved in the process of provision of products and services required by the consumer. The challenge with supply chain management is to synchronize the line of supplies with consumer demand and also be able to measure the performance and success rate.

eCommerce & SCM Challenges

In today’s digital world, more and more businesses are embracing the online trade by building electronic stores and creating a web presence to promote and sell their products and services to a wider range of consumers around the world. Due to the revolution of mobility and Internet connectivity, consumers today are much more Internet savvy and are very capable of browsing and shopping online to quickly find the products or services they want. However, in turn, consumers are becoming impatient and request their bought products to be delivered to them in the shortest amount of time. This has created some challenges for e-retailers, such as the following:

  • How to keep the supply chain line full in order to respond to the growing demands and trends of the consumers
  • How to balance between incoming demands and production, knowing that major production facilities today are overseas and avoid a high level of inventory storage and great “over-stock”
  • How to quickly communicate the right business information and requests between the different systems of multiple business partners involved in the supply chain pipeline?

#1 – Use fully integrated software systems

The first tip in overcoming the above challenges would be to use integrated software systems when running an eCommerce Store. Whether it is a small business or a larger enterprise, having one platform to manage and run your business is very advantageous. I have witnessed many enterprises with over 50% of their business coming in from their eCommerce store and they are still keying in information manually. To be efficient, enterprises should be using integrated software systems to manage their eCommerce and retail business.

#2- Integration & Data Exchange (EDI, XML..)

To be able to balance between the demands of products and services coming in from the eCommerce site and the supply chain demands, the best option is to empower the eCommerce platform with EDI capabilities. This way businesses can exchange data automatically in real-time with suppliers and business partners, in order to keep the supply chain filled.

Most of the time, enterprises are not able to change their “legacy systems” quickly and at a low or affordable cost. This kind of project requires a large budget and a lot of resources. Therefore, unfortunately we still find too many legacy systems based on AS400/DB2 and other platforms that are still in production.

At the same token, modern ERP systems such as JDE and SalesForce lack many built-in features capable of exchanging data such as EDI. They offer the gateways for integration (i.e. API, Web Services…) but they expect the company to invest time and effort on integration and data exchange projects.

Read: EDI, XML or Web Services; what’s Best for eCommerce Integration

#3- Adopt Modern Solutions

In order to be able to exchange data electronically, enterprises should invest in modern, scalable integrated IT solutions that are flexible enough to grow with the business. The ideal integration solution should have the capabilities to parse data of different formats (such as EDI, XML, Json, CSV…), translate EDI from one format to another and it should be powerful enough to interact with different systems and platforms.

In addition, a modern efficient integration solution is the one that offers the flexibility to communicate with different business partners, using various modern communication protocols such as AS2, sFTP, Web services, etc.

Is your eCommerce & Supply Chain out of sync?

We often believe that we are sheltered from these common problems and that our IT systems work fine. After taking the time to analyze your business processes a little more you may begin to see some problems or room for improvement. With my 20+ years of experience on the matter, I have seen it all. Start empowering your eCommerce site with the best tools and processes.

 

 
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Top 3 Challenges to Overcome in Salesforce and EDI Integration Projects

Today’s business environment is full of complex business processes; lead time to deliver, merchandise fulfillment, forecasting and more. On top of these processes, there are constantly new strict regulations imposed on businesses by major retailers, like Amazon, Sears and Wal-Mart. Most often, restrictions are enforced when dealing with data exchange, stock and inventory availability and other compliances.

Top 3 Challenges to Overcome in Salesforce and EDI Integration Projects

Luckily for companies, a diversity of efficient ERP systems, EDI tools and enterprise software applications, such as JDE, Salesforce, SAP, are running businesses of all sizes. Integration between different systems is becoming more than a luxury, it is a necessity. Enterprises of all sizes are making greater efforts to equip their IT systems with the capability to comply with requirements imposed on them by major retailers. One such issue is EDI integration and the ability to exchange and comply with retailer’s requirements. The key is to ensure you have chosen the right technology and the best team to handle the integration projects.

In my previous article, I addressed the major issues related to EDI integration with JDE. In today’s blog, my focus is on EDI integration with Salesforce or any other software CRM application. These projects can be long and costly if not done right, therefore read below to have an efficient, cost effective and solid integration for EDI communication.

What is Salesforce?

Top 3 Challenges to Overcome in Salesforce and EDI Integration Projects 2Salesforce is a cloud-based CRM (Customer Relationship Management) software system. It is very popular amongst enterprises of all sizes as it is best known for its openness for integration. Developers and integrators can read and write data using API and web services. Many companies use Salesforce as a unified tool for leads, campaigns, opportunities and customer tracking.

EDI Integration with Salesforce

Salesforce is simply a CRM system but add-on modules have been developed so users can enter sales orders for clients and confirm processing. However, when it comes down to needing to complete further business processes, which are included in an ERP solution, such as EDI communication, a different approach should be followed. Integrating EDI orders sent by retailers to a CRM user requires further expertise by a team of IT professionals with a solid knowledge of integration and EDI.

Read: Why we love EDI2XML for EDI Integration with JDE (And You Should Too!)

Following are the top 3 challenges that any EDI integration project manager should consider and overcome:

1) The Technology

It is essential in any EDI integration project with Salesforce to be using good technology; that is scalable, flexible and easy to use, with little training necessary. Such technologies exist in the IT marketplace and if properly used, it can be leveraged to save a lot of time, effort and money in the integration process. The ideal tool should be able to interact with XML and Salesforce and all its interfaces (API, SOAP…).

2) EDI via AS2 or VAN

The second issue to consider during an EDI integration project with Salesforce is in regards to the communication protocol to transmit EDI data between you and the retailer. More and more, retailers such as Amazon, Wal-Mart and Sears, are mainly offering AS2 connectivity for suppliers wishing to exchange EDI with them. AS2 is a protocol of secured communication of EDI files from point A to point B. When setup and implemented correctly, this kind of implementation saves a lot of money.

However, most often, companies go with a VAN due to the retailers’ incompliance with AS2. It is difficult to do business with these big players without them enforcing their rule by using the service of EDI VAN to all their suppliers. Therefore, the choice to even go with a third party service provider is not given but it does exist.

3) EDI Translation

The EDI translation and integration into the Salesforce databases is the biggest challenge of all. It truly takes some major evaluation and analysis of the situation before beginning. One major question to consider and ask is whether to do the EDI translation and mapping on-premises or as a service. Of course, it all depends on the company’s budget and the capacity of the company’s IT team and knowledge of EDI communication. Also, another consideration is the type of technology. Nowadays, there are experienced service providers that are capable of taking on the service of:

  1. Receiving EDI transactions from the retailer
  2. Processing the EDI files
  3. Translating the EDI files and integrating it into the company’s Salesforce system

What’s Next?

As you might know, a lot of parameters are involved in EDI integration projects, whether you want to integrate with Salesforce or any other software application. A professional opinion from EDI experts is important and very much needed for any business.

Namtek’s IT & EDI Consultation is free and at your convenience. Do business the right way – contact us today.

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Best EDI Processing Options: Service Bureau VS Translation & Integration Solution

In today’s article, I will be addressing the best option to process EDI data, exchanged between business partners, by identifying the advantages and inconveniences of two methods; an EDI Service Bureau and a Translation/Integration solution.

It’s not a surprise to business people that exchanging business data using EDI protocols and formats has been around for a while and is clearly here to stay. If you’ve stumbled upon this EDI article, then you are perhaps either interested in enhancing your EDI capabilities or looking to implement EDI in your business environment. Either way, it is proof that EDI is still in demand in the business community.

As this is my first time addressing EDI through a Service Bureau in my blogs, I will clearly define and explain what a Service Bureau does and provide my opinion on the topic.

EDI Service Bureau

EDI Service Bureaus have been around for many years. They were created as a third party provider sitting between business partners. How it works is simple. The Service Bureau receives EDI data from one partner to process into a human readable format (on behalf of the destination partner) and then send out to that destined business partner.

How A Service Bureau Processes EDI Data

As mentioned above, upon receiving the EDI data from a VAN or directly from a business partner, a Service Bureau will take that data and process it to generate a format that is agreed upon by the destination partner. The most commonly used formats are:

  • Paper document
  • PDF document
  • Excel format or CSV (Comma Separated Values)
  • Web-based document

Once the EDI data received by the Service Bureau is translated to one of the above formats, the Service Bureau would then transmit the translated document to his client (final destination partner) using one of the following methods:

  • Fax
  • FTP or sFTP
  • E-mail

For outgoing EDI documents, the partner would return the information to the Service Bureau in the same formats as mentioned above (i.e. paper, PDF, Excel or CSV documents). Nowadays, some Service Bureaus provide web-based interfaces for their clients, to manually enter the data in order to generate outgoing EDI files to be sent to their partners.

EDI solution and ERP

How Businesses Process Data Received From Service Bureaus

Depending on which format the Service Bureau translates the EDI data into, the business partner would have to deal with it differently. Here are the possible scenarios for incoming EDI documents:

  • If the data is treated in a web-based format, the business would need to login to the Service Bureau web portal, retrieve the data (orders, invoices, etc.), print or export the document, and then either key it in manually into their own management system or import it from CSV, only if their internal system supports this kind of process.
  • When the EDI converted data is sent as a paper document or PDF (received by either fax or e-mail), the user will then have to key the information received in manually into their system, without question.
  • When the data is received in Excel or CSV format, the user can either key in the data manually or import it into his internal ERP system.

The same concept applies for outgoing EDI documents through Service Bureaus. In all cases, the business has to either key in data in Excel or manage it through a web-based interface provided by the Service Bureau.

Service Bureau Inconveniences

As you may have noticed by now, exchanging EDI via a Service Bureau is not the most efficient way of communicating with business partners (click to tweet). In fact, the likelihood of human errors and inefficiencies are very high. In this day and age, where there are constant improvements in technology, it is extremely inefficient for SMEs to be keying in orders received by EDI (through paper document or PDF) (click to tweet). Even with the web-based alternative that Service Bureaus offer, it is still unproductive to manage multiple systems rather than having one single platform with full EDI capability.

Read: Convert EDI to XML: the Winning SaaS Option

EDI Translation & Integration

Once businesses have switched from using a Service Bureau to implementing an EDI translation and integration solution, they have eliminated all kinds of inefficiencies and human errors and have become much more efficient. The way it works is by having a fully integrated business solution in place that has built-in capability to process incoming and outgoing EDI documents. Refer to my previous article entitled See What It Means To Be Fully Integrated with an Efficient Business Software Solution that expands more on integrated solutions.

However, it is very common for business owners to be hesitant to implement a fully integrated solution into their small business, as they believe all ERP systems are expensive. That is simply not the case anymore, as we are in 2014 and IT solutions have become very affordable. EDI2XML offers affordable EDI integration that fits into the budgets of small and medium sized businesses (click to tweet).

What Is The Best Option: EDI via a Service Bureau or a Translation & Integration method?

As a professional IT consultant and developer, I have helped many small and mid-sized businesses streamline their business processes for over 20 years. I truly believe a fully integrated process and solution would be the best option to go with. Not only is it more efficient for your company as a whole but is also affordable. I have already published my arguments in a previous article entitled EDI integration projects: Advantages and Benefits.

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

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Take this QUIZ: Is your business cut out for on-premises EDI software?

This post was updated to reflect current trends and information.

As an EDI expert, I receive many questions related to deployment of the EDI software. “Should our business go with on-premises or “in the cloud”?” As many business executives are not sure which way to go, I have listed a few questions that will make their EDI deployment decision easier.

Below are the right questions to ask yourself in order to make the best decisions for your company when it comes time to implementing EDI software.

Please note: if your major problem is how to integrate EDI with JDE, please refer to my previous blog entitled, ‘How to Solve the Biggest EDI Integration Problems with JDE’.

1. Do we have the proper in-house EDI expertise?

Before making any decision about how to deploy EDI2XML, Namtek’s EDI conversion solution, or any other EDI software internally, one should ask the very basic question: Do we have an IT professional in-house with a basic understanding of EDI? A basic understanding is all an IT expert needs when dealing with EDI2XML on premises.

2. Do we have the expertise to work with XML?

The second question is of course asking whether your internal IT team has the necessary capabilities and expertise to work with XML and its schemas. An IT professional having expertise in XML is much more probable than EDI expertise. However, never assume, as it is always best to confirm this beforehand.

3. Do we have enough time for our IT resources?

Once you realize you have an in-house IT team with the expertise in EDI and XML, you need to evaluate if they have enough time to handle an EDI implementation project. Many executives underestimate the time and effort involved in EDI communication, especially if their IT team is handling other priority projects and tasks. The same question should be asked if the company does not have an in-house team and has hired outside IT consultants for their day-to-day IT needs.

Read: SaaS EDI or On-Premises EDI Translation Software: What you should know

4. Do we have the necessary IT infrastructure?

Another very important factor to consider before deploying EDI translation software on premises is your company’s current IT infrastructure. If your current hardware and infrastructure cannot support an EDI software solution, then it is time to invest, which can of course add more costs to your project’s budget. Nowadays, many business executives do not want to worry about this and have opted for “cloud-based” software services. Adopting SaaS solutions (Software as a Service) does not require any investment in IT hardware and infrastructure.

5. Can my current ERP software handle EDI integration?

Any time there is an integration project within a company, a crucial question to ask is if your current ERP software (if your company even has one) can handle EDI integration, or any add-on software integration. If your company is still running a legacy software system or out-dated software, with no support and maintenance, integration becomes very difficult. The best way to go for any integration project, including EDI, is to begin with an upgradable and scalable management software solution where integration is easy and quick.

Please review my article about the importance of fully integrated software in a business of any size.

Where do we go from here?

If you’ve answered “YES” to all 5 questions above, then your company is suited for an on-premises EDI implementation process. However, if you’ve answered “NO” to at least one of the questions, then it is best to go with an EDI conversion service that does the complex work while your team of IT consultations take care of the integration with your internal software system. If however you do not have an internal IT team, then simply go with an EDI software solution “in the cloud” with full service. At this point, you wouldn’t need any IT infrastructure or in-house IT team as all you would need to do is hire an outside team of EDI experts to implement and handle the EDI communication. Please check out our EDI2XML as a Service for more information on how an EDI solution “in the cloud” works.

If you need further help in determining what the best steps are for your company, I am be happy to offer my team’s long time EDI and systems’ integration expertise for a Free Consultation.

Free EDI consultation

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How to Solve the Biggest EDI integration Problems With JDE

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This post was updated to reflect current trends and information.

EDI integration projects have always been time consuming, as it requires an expert team with EDI knowledge and many resources. No matter how small or large the company is, the previous statement falls true for them all. It is the nature of EDI and all the processes involved that makes an EDI integration project complex and problematic for the developers and executives. In this article, I would like to identify a few of the major problems of EDI integration with JDE (JD Edwards) and how to solve them, in order to have a smooth and successful EDI implementation.

About JDE

JD Edwards, also known as JDE, is an Enterprise Resource Planning (ERP) software that Oracle sells and supports. JDE is offered in two different lines (or editions): JD Edwards EnterpriseOne and JD Edwards World. In most cases, JDE software solutions are implemented and deployed in corporate level enterprises. It is less present in small enterprises since most SMEs cannot afford its maintenance costs.

Why EDI integration with JDE is a problem

Read: EDI Integration with JDE Made Easy with EDI2XML

While JDE is a great corporate level ERP solution, offering lots of tools and connectors for data integration (flat file and other format), it does NOT offer out of-the-box an integrated EDI solution or connector that would make EDI integration seamless. It offers the necessary interfaces to define file formats for export and import, but it stops short on completing the loop into a full EDI solution.
For EDI project integration, JDE heavily relies on third-party “EDI translation software” to send or receive EDI files, and to turn the EDI files into a format (flat file for example) that can be easily interpreted and processed by JDE.

Having said that, you can now imagine how complex and time-consuming integration of EDI in JDE is for a company’s IT personnel and developers. The major problems can be summarized as follows:

  1. IT personnel need to have an extensive EDI expertise; for example, a high knowledge of EDI is needed to be able to define the data to be extracted from the incoming EDI file
  2. They need to learn how the “EDI Translation software” works as well as how and when to extract data and transform it into the proper format for JDE
  3. Of course, they need to know how to work with JDE and setup interfaces and connectors. This one is not of a major concern as IT personnel handling JDE are experienced with this platform

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>

How to solve the integration problems

In order to solve problems associated with EDI integration with JDE, it comes down to reducing the number of points identified in the previous section to 2 rather than 3, by capitalizing and building on JDE expertise. So how can this be done in order to have an EDI integration project run smoothly, on budget and on time?

Read: Top 3 Challenges to Overcome in Salesforce and EDI Integration Projects

The answer is simple. Companies running JDE can leverage:

  • EDI2XML : the technology to convert EDI to XML (and XML to EDI)
  • Magic xpi: the business integration platform from Magic Software, that is able to orchestrate the entire business process. It is an “Oracle Validated Integration” solution for both JD Edwards EnterpriseOne and JD Edwards World.

Magic xpi comes with a lot of built-in features to support an EDI project implementation such as:

  • Communication components (FTP,sFTP)
  • Ability to execute scheduled tasks based on several triggers
  • Ability to execute tasks based on file scanning triggers

EDI2XML has complementary features to make an EDI integration project within JDE very simple and straightforward:

  • EDI2XML is able to generate FA 997 out-of-the box for incoming EDI documents
  • EDI2XML turns the EDI files received into readable XML format, so no need for extensive EDI expertise

Therefore, EDI integration projects with JDE don’t have to be so dreadful anymore. The marriage of EDI2XML, Magic xpi and our team’s EDI expertise can definitely benefit your company and make EDI projects easy and under budget.

To read more about using EDI with JD Edwards and the third-party applications, Click here

Free consultation ecommerce JDE integration
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EDI Translation Software “On-premises” or “As a Service”

This post was updated to reflect current trends and information.

As soon as there is a requirement for EDI implementation and integration, company executives, along with their IT personnel, begin by determining how they will comply with their EDI business partner to exchange EDI documents. They will need to acquire EDI translation software, initiate testing, and so on. This however is a complex and lengthy process, which many executives do not look forward to. Difficult questions arise, such as, “Shall we outsource to an EDI service provider? Shall we do it ourselves “on-premises”? Shall we do the translation and conversion of EDI “as a service” using an outside provider?

Which of these options is the best and most affordable way to go?”

Why Do We Need To Translate EDI

As you already know, EDI (Electronic Data Interchange) is the standard to exchange business data between business partners in a very proprietary EDI format. Your business partner would send data such as a P/O (EDI 850), an Inventory Inquiry/Advice (EDI 846), or any other EDI transaction, based on his own terminology of business parameters. It is then up to the “receiving party” to take the sender’s EDI data and information, translate it into a well-understood format, which the receiver’s system will be able to use and process. With EDI2XML, we translate the EDI format of incoming documents to a much simpler, more structured XML format so humans, namely the IT developers, and systems can easily work with.

Translate EDI “On-premises”

Normally, translating incoming EDI documents “on-premises” requires a lot of parameters before launching such a project. As a starting point, a good level of expertise in EDI, EDI communication, and systems integration is required. Integrators should also have a fairly advanced knowledge and expertise in how the company’s software system (ERP, CRM, etc.) works and how to integrate and push data into that system.

While the ability to integrate with the most commonly used ERP and CRM systems does not create any major challenge for experienced IT developers, the main problem is having a high level of proficiency in EDI implementation.

Another major task for the “on-premises” translation is, in most cases, the need for the company to invest on hardware, software licenses, and services (internet, dedicated IP, VAN) to be able to exchange EDI documents with their business partner.

Useful Reading: What are the advantages of using EDI2XML?

Translate EDI “As a Service”

With the emergence of cloud-based IT services and the affordable plans offered by service providers, the ability to translate EDI “as a service” in the “cloud” and deliver the end result to the ultimate destination, has become a more productive approach.

Typically, an EDI service provider offering EDI translation “as a service” will:

– Act as an intermediary layer between the EDI sender and EDI receiver

– Receives the EDI incoming document (i.e. 850, 860, 864,…) on behalf of the “ultimate receiver”

– Extract the data received in EDI format and translate it into a standard format (i.e. XML)

– Transmit the XML data to its ultimate destination for Integration OR integrate directly into the software system of the ultimate receiver.

To send EDI documents out, the EDI service provider will be acting also as an intermediary hub between business partners and do the following:

– Receive data in XML format to be sent to the business partner from the sender through FTP or sFTP

– Translate data received and convert from XML to EDI format

– Transmit that EDI data to the destination

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

Advantages of EDI Translation “As a Service”

With the EDI translation in the cloud offered as a service, companies have a lot of great advantages:

– Quick implementation cycle

– Secured and proven platform to exchange EDI with partners

– No initial investment on hardware or software licenses

– Get up-and-running quickly: your projects are on-time and on-budget

– Use the wealth of expertise your EDI service provider has in EDI

– Let your team of IT professionals focus on integrating XML files into your system rather than learning EDI

– Predictable and static recurring monthly fee for the service

– Possibility to move to “on premises” mode any time

– Ability to integrate to your system directly without your internal IT resources

Discover how you can streamline and simplify your EDI projects with EDI2XML Fully Managed Services

The Best EDI Solution

Most companies usually lean towards the “on-premises” option when they have “internal policies” and security measures in place or are a large enterprise with their own team of IT experts.

The “as a service” option is much more advantageous for small to mid-sized enterprises, where they may have a lower number of exchanged EDI transactions.

As the “as a service” option’s low initial investment and quick deployment are attractive features, every situation is different and should be dealt with on a case-by-case basis with one of our EDI experts prior to making a final decision.

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Free EDI to XML converter: What’s the catch?

This post was updated to reflect current trends and information.

Free EDI to XML converter

Recently, I have received many questions and inquiries about our EDI2XML technology and why it is not offered for “free” like many apps or tools available on the Internet. Just the other day, an acquaintance of mine was contesting that he could find another API for EDI conversion to XML, download it and use it “free of charge”. I decided to write this blog post to share my past experience with free EDI to XML conversion tools and hopefully give you more insight into why a Free EDI to XML converter is NOT a good option for your business.
EDI2XML converter

Being an EDI professional, I realize and implement EDI projects. I have encountered many situations where I needed to accomplish urgent and quick results using any code I could find in the moment; library or API that can be downloaded quickly from the Internet for FREE! Everyone likes free things and I am no exception to this.

Therefore, during one of my first experimental EDI projects, I found a free tool to convert EDI to XML. Once I downloaded the tool, I started to work on how to turn EDI X12 to XML, and vice versa. Below are the observations I noted from that experience:

Limited help

After running the setup program, I hit a few installation errors. I then started the process of identifying these issues, however, I found this process to be very hard, long and tedious since only some of the errors were documented, while most of them were not. In addition, I had to write to the community of the support team. I received a reply two days later, which is a terrible response time if you are in a hurry. We found the issue to be some .NET compatibility between the installer and the operating system I had on my machine.

Features: fell below expectations

After the long installation process, I was finally glad that my Free EDI converter to XML was setup properly. It was now time to experiment its conversion features. Unfortunately, it wasn’t long before I was disappointed over the fact that this converter had many limitations. It was not converting the EDI to XML based on a format I was expecting. It simply put the XML tags before and after each EDI element and grouped each one of the segments into node. This is not any easier than working with raw EDI. In addition, the tool was not able to convert XML back to EDI. Therefore, the simple features it promised were not even working.

“Black Box” solution

I didn’t give up just yet. I then figured that if I can tweak the code through parameters or code modification, it could work. Unfortunately, that was not possible; I had downloaded a “black box” solution where I cannot do any modifications or tweaks to my needs.

Little or no support

At this point, I decided to contact, yet again, the community of support as well as the software developer. Unfortunately, the support offered by the developer was an expensive paying option. In addition, if I wanted to customize the engine, I would need to pay a high fee. Bottom line, I wasn’t left with many choices. I had to live with the community support, which was relatively good, but not like any commercial support where response time is on average 2-4 hours.

Read: Convert EDI to XML: the Winning SaaS Option

Lack of scalability

In the end, we hit a wall with the converter. In order for me to reach my expectations with this converter, I would need to pay for a custom job. Once it is custom made, scalability becomes on us, based on how much money we can invest in developing the tool and make it scalable. At this point, I was hesitant, since I would have gone from a Free EDI to XML converter to a very expensive tool. However, if we stuck with the basic free option, then it is quite clear, the EDI conversion tool would not perform, as we had needed.

Is it a feasible approach?

Having gone through all of the above, we took a step back to reassess what our options were. Should we invest in upgrading a Free EDI to XML converter or should we build it from scratch in-house?

We needed to ask ourselves if it was a feasible approach to have a business depend on a free tool, knowing in advance it is a “black box” without support and scalability.

Our answer was “NO”. This is when we decided to go ahead with our alternative solution.

EDI2XML, an alternative

Having spent much time exploring the possibilities of using a Free EDI to XML converter, we came to the conclusion that we would be better off building it ourselves. Our goal was to make it quick, easy, affordable and simple to deploy for us and for our clients with the capability of translating XML to EDI, and vice versa. Other pre-requisites were to ensure scalability and flexibility of EDI2XML as well as the availability of a great support team for EDI2XML. In the end, we succeeded! Our very own EDI2XML solution is offered  as a Services  and HTTP service  for companies of all sizes.

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.

 

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