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Tag Archive for: EDI

Canada Border Services Agency (CBSA) ACI eManifest

This post was updated to reflect current trends and information.

Canada Border Services Agency (CBSA) ACI eManifest

Canada Border Services Agency (CBSA) requires all cargo transporters (Highway Carrier, Air Carrier, Marine Carrier, Rail Carrier, Freight Forwarder, Warehouse Operator, and Account Security Holder) to send electronically and in advance commercial information about their shipments in what is called Custom Manifest or Canadian Advance Commercial Information (ACI) eManifest. This measure is necessary to improve the security of international trade and to optimize commercial cross-border processes.

There are two possibilities to transmit electronically pre-arrival information to Canada Border Services Agency (CBSA). Companies may choose between:

Differences between CBSA Electronic Data Interchange and eManifest Portal

EDI and eManifest Portal have different terminologies, data requirements, and business rules. The differences are mainly because EDI and the eManifest Portal are based on two different technologies and interfaces.

EDI refers to the exchange of information, thus, companies using EDI can get statuses and receive notifications, while eManifest Portal refers to the submission of information only, and refers to Statuses.

Canada Border Services Agency CBSA EDI exchange

Similar to the US Customs and Border Protection (CBP) the Canada Border Services Agency (CBSA) is committed to both the ANSI X12 and UN/EDIFACT Electronic Data Interchange standards.

Communication Methods for Electronic Data Interchange (EDI) to CBSA

There are three options to transmit electronic commerce information to CBSA:

Value Added Network, or Direct Connect (DC) to the CBSA

Some VANs have an interconnect with the CBSA to allow EDI exchange with the trading partners and shipping companies; However, Direct Connect (DC) is an alternative that provides a special direct connection to CBSA. All new connections require an initial investment of $ 25,000 ($ 5,000) for customization.

 Customs Internet Gateway (CIG)

CBSA has developed a Customs Internet Gateway (CIG) for transmitting and receiving data over the Internet. Clients must acquire certain encryption and decryption software, as well as develop or acquire protocol software to connect to the CIG. Customers will need to transfer data from the Canadian office, as the certificate is assigned only to the device in Canada.

Third-Party EDI Service Provider

For those companies who are unable or unwilling to transfer data directly to CBSA, there are third-party service providers who are setup and to transmit and exchange data with CBSA in both directions. These organizations offer various EDI solutions, and usually, offer a wide range of EDI services.

Information of Freight/Cargo Manifest for CBSA

The various information must be shown on Freight/Cargo Manifest. (paper form A6A) for example for Marine Carrier:
  • Records the registered name of the vessel
  • Port where the report is made (presented) – Canadian port where the vessel arrived or departed
  • Nationality of ship
  • Name of Master – Self explanatory
  • Port of loading/discharge
  • Final Destination (if on-carriage)
  • Date of sailing from the port of loading
  • Shipper, Consignee information
  • Number of the ocean bill of loading
  • Marks and numbers on each package
  • Number and type of packaging, product description
  • Gross shipping weight of cargo in each category by unit measure.
  • Freight details, charges, etc.

In addition, all carriers and freight forwarders must have a carrier code issued by CBSA.

What Kind of Customs Documents Companies May Exchange via EDI with CBSA?

Depending on your business type and needs, you can submit and request different EDI documents and receive all acknowledgment and reject messages from CBSA:

– Highway carrier – cargo and conveyance documents for highway shipments.

– Air carrier – cargo, conveyance, house bills, and conveyance arrival documents for all air shipments.

– Marine carrier – cargo, conveyance, house bills, bay plan, and conveyance arrival documents for all marine shipments.

– Rail carrier – cargo, conveyance, house bills, and conveyance arrival documents for all rail shipments

– Warehouse operator – can request ACI notices.

– Freight Forwarders – house bill and close notifications for all shipments, all modes of transport

– Account Security Holder – receive notifications based on advanced trading data for all shipments and all modes of transport.

Timeframes for Submitting Custom Manifest to the CBSA
EDI for CBSA

Air carriers – 4 hours

Air carriers transporting cargo to Canada must transmit information on cargo to CBSA at least four hours before arriving in Canada. If the duration of the flight is less than four hours, at the time of departure.

Highway carriers – 1 hour

Highway carriers that ship goods to Canada must transfer information about goods electronically to CBSA prior to arrival. CBSA must receive and verify cargo and transport data at least one hour before the cargo arrives at the border.

Marine carriers – 24 to 96 hours

Depending on the type and origin of the goods marine carriers carrying goods to Canada must submit cargo and conveyance information to CBSA within the prescribed time frame before arrival or before loading.

Rail carriers – 2 hours

CBSA must receive electronically cargo and conveyance information from rail carriers, within a minimum of two-hours before the conveyance arrives at the border.

The Best EDI Service Provider to Exchange EDI

At EDI2XML, we know that our first task is to provide innovative and effective solutions to solve the most difficult EDI task when crossing the border and saving you time and improving efficiency.

Are you need to submit your eManifest to Canada Border Services Agency (CBSA)? We have the solution! Contact us to learn more about ACI eManifest.

Free EDI consultation

RELATED POSTS:

CBP EDI 309 Customs Manifest Transaction

EDI X12 204 Motor Carrier Load Tender – overview

What is Advanced Ship Notice (ASN) 856 transaction set?

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

This post was updated to reflect current trends and information.

Electronic Data Interchange (EDI) and all the services around it are becoming more and more popular, regardless of the industry, for one major reason: EDI transactions are replacing paper documents exchanged between trading partners, and helping companies in their digital transformation projects, for a “greener” planet.

Retail was one of the first industries to fully adopt EDI, and it is still the most active vertical in its usage. EDI is a proven and effective alternative to fax, e-mail, and manually entering or re-entering data such as Invoice, Purchase Order, Inventory and many others…

There are various types of EDI and several approaches to integrate Electronic Data Interchange in a business community. Each EDI provider can offer a different EDI integration methodology, in order to become EDI compliant. We at EDI2XML, offer two options for to integrate EDI into your company, and make your business “EDI compliant”, while shortening the integration project:

Fully managed EDI service

HTTP EDI Web Service

How to select? What kind of EDI integration solution is a better option for your business?  First, let’s understand both options.

Fully managed EDI service

The EDI2XML service offered as “fully managed”, includes translation and communication service offering to businesses of all sizes, from different industries.

Our team at EDI2XML, takes care of ALL the aspects of the integration project. With this model, we offer a “Turnkey EDI Solution” where we take on our shoulder all setup, configuration, testing, certification with the EDI partners …
EDI Fully Managed Service

In other words, with this option, we take care of everything: all the steps of the project from A to Z. We can even integrate directly into your ERP or CRM system. We provide certified connectors for leading IT systems such as Salesforce, JD Edwards, SAP, Dynamics CRM, Dynamics AX, and more.
EDI integration platform

a) Technical Details

A setup phase is mandatory for all new Trading Partners and/or EDI document implementation. This stage includes the project analysis, setup of Trading Partner accounts, configuring Partner specs and platform, defining the transfer file structure, building and setting up all required connectivities and communication protocols. It also includes an end-to-end full cycle data testing and certification.

To learn more about EDI service, download our free introductory guide here

b) Pricing

As for the pricing, it is based on pre-defined monthly service packages, including a pre-defined volume of data processed. All our packages are billed monthly based on the entry level plan (Business Light) at the beginning of each month. Subsequent month billing will include the basic plan fee PLUS the difference between the plan we billed initially (Business light) for previous month, and the plan that we were supposed bill for the previous month based on real volume of data processed for that month.

All this to say, our monthly pricing packages are dynamic, they go up and down based on the volume of data we process and integrate, and our clients are not locked in in any of the packages.

For more information about pricing – fill out a form: EDI2XML Translation Service Pricing Package

HTTP EDI Web Service (REST API)

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

EDI2XML Web Service is much more cost effective, and meant for companies who got their own technical resources to work with REST API (call and consume HTTP Rest Web services)

The principles of the mechanism of EDI2XML Web Service is schematically illustrated in the below diagram.
EDI Wed Service

a) Advantages

EDI2XML Web Service is the way to go for the following reasons:
  • Self-service solution
  • Low cost
  • We offer a 15 days free trial, without any commitment.
  • Get started with less than an hour
  • There is no contract, no commitment.
  • Payments are month to month; Cancel anytime with a 30 days’ notice.
  • A very simple and dynamic pricing scheme
  • Availability and reliability
  • Based on proven technology in the field for over 18 years now
  • Outstanding technical support

b) Technical Details

Implementation time: Getting started with EDI2XML Web Service, is very simple and quick. Within less than an hour, you can issue the first Call to the Web Service and see the response. Our HTTP EDI Web service is very clearly documented, and we provide instructions with each subscription.
  • Quick entry: you can be up and running in less than an hour, and it is proven; we provide everything to your developers to get started, a java client with its source code and instructions on how to work with it.
  • We offer the schemas(xsd) of the XML format our API expects, and all what you need to do is to format your data according to that format and you will be up and running.

c) Pricing

EDI2XML API service fee to use the HTTP / Web Service calls, has a very simple pricing scheme. The price consists of two elements:
  1. Monthly mailbox fee: a “fixed” monthly fee for the Web Service Mailbox usage on EDI2XML platform. It is a nonrefundable fee.
  2. Data processing fee: a “variable” fee based on the volume of data processed and translated between EDI and XML, during a calendar month. The volume of data processed is computed in both directions:
  • Incoming, and
  • Outgoing

Click here to request EDI2XML Web Service Price List

d) How to get started with EDI2XML API

To get started with our EDI Web Service three steps you need to follow:

1. You need to provide us the list of documents/transactions you want to be activated under your trial account.

2. We will simply set you up with a 15 days trial account, without any commitment from you. Just let us know when do you want to kick off, and we can take care of setting you up on a trial account.

3. We provide a Java client and its source code. You can get started with less than an hour, this will allow you to try and see the results by your own.

? Watch the Video and discover which solution aligns best with your business needs and goals.

Compare key features of Fully managed EDI service and HTTP EDI Web Service

key feature

Fully managed EDI service

HTTP EDI Web Service

 Type of EDI solutionFull serviceSelf service
 Contract YesNo
 Commitment24 monthsNo
 Implementation time   (approximately) 2 weeks1 hour
 Real-Time ConnectionYesYes
 Free Trial account No15 days
 Data processing feeBased on the appropriate plan. It works in both directions: when the volume goes up and  when the volume goes down.  “Variable” fee based on the   volume      of data processed     and translated         between   EDI    and XML, during a         calendar    month.
 Need for internal   resourcesNoYes
 Need for in-house EDI expertiseNoNo
 Technical SupportYesYes
 Hardware Installation  RequiredNoYes
 Software Installation RequiredNoNo
Communication with the trading partner: setup and testing in both directionsYes

No

Free edi consultation

We, at EDI2XML, provide an EDI integration solution for every type of business. Contact us today for a free consultation and we will help you find the most appropriate option for your business.

API Web Service for EDI X12 exchange – Discover the advantages

This post was updated to reflect current trends and information.

API Web Service for EDI X12 exchange – Discover the advantages

For over 20 years, we have been working with EDI, integrating systems and helping companies of all sizes, in their digital transformation journey. We have been writing extensively and covering hot topics about EDI integration with e-commerce such as Shopify, Amazon and other eCommerce platforms, or EDI for drop-ship business, or EDI Integration with Salesforce and other different CRM and ERP system.

We have extensive knowledge in Electronic Data Interchange (EDI), and we share our knowledge by writing a large number of articles in our Blog ; we take up questions from our readers and contacts, related to different EDI topics, including types of EDI messages , EDI Standards and we try to respond to those in our blog.

In this article, there is an important topic I want to expand on: it is our EDI2XML API service, to translate EDI to XML (and vice versa) through our Http/https/httpss REST Web Service; This service we launched last year, and it is gaining success and popularity, mainly within the community of CTOs, Integrators and Developers who are looking for ways to include EDI messages processing, as part of their ESB (enterprise service bus) integration projects, in a corporate environment heavily connected using SOA (or service-oriented architecture).

What is EDI2XML Web Service?

EDI2XML Web Service, is an HTTP/HTTPS/HTTPSS service running over the internet, on EDIXML own platform that is capable of receiving HTTP/HTTPS/HTTPSS requests to translate EDI messages to XML, and XML messages (based on EDI2XML’s proprietary format) to EDI. The principles of the mechanism of EDI2XML Web Service is schematically illustrated in the figure below.

EDI2XML Web Service: Who is it for?

EDI2XML Web Service is for developers and businesses, interested in building their own EDI (Electronic Data Interchange) integration flows and programs. Normally, these individuals, are capable of interacting with external API and Web Services to translate EDI to XML and XML to EDI, and have the resources and expertise to work with Web Services and HTTP/HTTPS/HTTPSS 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.

How much time does it take to get started with EDI2XML Web Service?

In order to access EDI2XML Web Service, and start taking advantage of our HTTP/HTTPS service in your EDI integration projects, we require that you fill the form on our EDI2XML website.

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

Our Web Service is very well documented and instructions are provided with each subscription. The instructions on how to get started are very straight forward and simple to follow. We provide detailed instructions and screenshots.

For a junior developer who is able to follow instructions, he can see results within less than an hour, just by following instructions from our quick start guide.

Moreover, we offer a 30 minutes courtesy technical call, for every new subscriber.

Is there any limitation with EDI2XML Web Service?

Access to our EDI2XML Web Service is unlimited and There are no limits for http/https calls. EDI2XML format supports currently the most commonly used EDI formats in North America: X12 and EDIFACT. You can check supported EDI transactions listed on our website. In case a transaction you are looking for is not on the list, we can simply just add it and activate into the service at no additional fee.

What is the XML format returned and expected by EDI2XML Web Service?

When Translating from EDI to XML, our EDI2XML Web service will generate a “proprietary” XML format we call it “EDI2XML format”. This is a very structured format where we do provide also the corresponding schemas (.xsd) for each transaction, in order to ease developer’s lives.

When translating from XML to EDI, EDI2XML expects a proprietary XML format, which we do provide the schemas (.xsd).

Does EDI2XML Web Service support Https?

EDI2XML API service supports http and https REST calls. We do realize how important is to transmit EDI information on a public tunnel such as the internet, with full security, when calling our EDI2XML web service.

Advantages of using EDI2XML HTTP/HTTPS service:

  • Get started 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
  • Self-service solution
  • Cloud based
  • Low cost
  • Quick entry: you can be up and running in less than an hour, since we provide everything an integrator/developer needs to get started. We provide java client with its source code and instructions on how to try it.
  • Free trial for [15] days, with no commitment.

EDI Consultancy

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

EDI Web Service for edi integration

Electronic Data Interchange: Key Information You Need to Know

 

This post was updated to reflect current trends and information.


EDI (or Electronic Data Interchange), has been part of business for long time; However, questions about its functioning, pros and cons are still not clear for new EDI users and those who have been using EDI for years in their business.

To help better understand EDI, we created this e-book “Electronic Data Interchange: Key Information You Need to Know”, where you find answers to most of the frequent questions like What is EDI? Benefits of EDI, EDI communication (EDI-VAN) and (EDI -INT) and much more.

It was built for beginners and those who have strong EDI technical knowledge. We are certain you will get important information out of this eBook, that is certainly useful to your EDI projects.

We invite you to download this e-book from EDI2XML Resource Page

Free EDI eBookFree EDI consultation

 

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


This post was updated to reflect current trends and information.


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

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

Here is a SOAP request and response packets:

SOAP request sample

SOAP response sample

Here is a REST request and response:

REST sample request and response

What is difference between SOAP and REST Web services?

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

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

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

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

Useful link: Download EDI Web Service overview. 

This EDI Web Service overview covers the following topics:

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

The best Web Service for EDI

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

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

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

 

EDI Web Service for edi integration

Continue Reading About Web Service: 

 

Seamless EDI implementation through Web Services

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

All About EDI: 11 Complete Answers about Electronic Data Interchange

This post was updated to reflect current trends and information.


We often get asked questions about EDI (Electronic Data Interchange), so we decided to write this article to answer the most common questions we get. We also provide you with useful links in case you’d like to explore further.

1. What is EDI? (Electronic Data Interchange)

Electronic Data Interchange (EDI) In simple words, EDI is the process of electronically exchanging business documents (in a pre-defined format) between trading partners. EDI replaces the faxing of paper and mailing documents.

Any standard business documents (e.g. a purchase order, invoice, shipping notice etc.) can be transferred by EDI, considering both parties have been setup to exchange with the appropriate EDI communication.

Useful Reading: EDI Document Library

2. Who uses EDI?

Electronic data interchange EDI Organizations of all types and sizes are able to utilize EDI. EDI communication is used in Government and various industries such as banking, healthcare, retail, automotive and others. Any company that buys, sells goods or services can potentially use EDI.

3. To be EDI capable or EDI compliant – what does it mean?

In simple words, EDI capable or EDI compliant is the ability to exchange business documents electronically in a specific format based according to an EDI standard.
Being EDI compliant, means your company has complied with the pre-agreed EDI standard which allows you to send and receive EDI documents to any business/trading partner located anywhere in the world.

4. What are the EDI standards?

All EDI transactions are determined according to EDI standards. Many industries have developed their own EDI standards to fit their requirements and business terms. EDI standards are built on the concept of making electronic business documents uniform, without regard to a country or place of origin. EDI standards regulate the correct order and location of the units of data in an EDI document. Below are some of the most commonly-used standards:

ANSI ASC x12 Uniform standard, developed by the American National Standards Institute, and Accredited Standards Committee X12 (ASC X12) to support companies across different industry sectors in North America.

EDIFACT Electronic Data Interchange for Administration, Commerce, and Transport (EDIFACT), developed by the United Nations. EDIFACT is the international standard but is widely used by multiple industries in Europe.

RosettaNet A standard widely used in the global semiconductor industry, but also in electronic components, consumer electronics, telecommunication, and logistics. RosettaNet is widely used in the USA, but it is also well accepted and even supported by governments in Asia.

Useful Reading: RosettaNet and B2B EDI Integration: All you need to know

PEPPOL (Pan-European Public Procurement Online) allows public organizations and their suppliers to exchange standard-based electronic documents over its network. PEPPOL simplify the trading process between private companies and government.

Useful Reading: B2G Integration: PEPPOL EDI Data Interchange

ODETTE A standard used by the automotive industries in Europe, developed by the Organization for Data Exchange by Tele Transmission in Europe.

SWIFT (Society of Worldwide Interbank Financial Telecommunication) The main goal is to exchange messages between financial institutions and banks. Financial and bank institutions from over 200 countries used SWIFT.

Tradacoms Standard mainly used in the UK retail sector.

5. What is EDI Mapping?

Mapping is the process of taking data from EDI format, to a company specific format and vice versa.

6. What does an EDI document, an EDI message or EDI transaction set, mean, is there a difference between them?

In the EDI environment each business document, such as an invoice or a purchase order, is called an EDI message or EDI transaction set or EDI document. Technically, there is no difference between them… The most commonly used EDI documents, especially in the retail and manufacturing industries, are as follows:

  • 810 Invoice
  • 846 Inventory Inquiry message
  • 850 Purchase Order
  • 855 Purchase Order Acknowledgment
  • 856 Ship Notice/manifest (ASN)
  • 997 Functional Acknowledgment

Useful reading: The most used EDI messages in the supply chain management

What is Advanced Ship Notice (ASN) 856 transaction set?

What is EDI 846 document?

Why EDI 846 is important to do business with big-box retailers

7. What are EDI Communication Protocols?

EDI protocols are the communication platform used for constant transmission of data between business partners.

Companies can either exchange documents directly to their Trading Partners (Point-to-Point) or through an EDI Network (VAN).

Direct

Direct EDI also known as Point-to-Point, allows companies to establish a single secure connection with their Trading Partner. Following are the most common communication protocols used to exchange EDI data in a point-to-point or direct connectivity:

  • FTP/SFTP – File Transfer Protocol/Secure File Transfer Protocol. These file transfer protocols allow businesses to connect with their partners via the Internet in order to exchange EDI documents.
  • AS2 A secure way to exchange documents over the Internet by using digital certificates and encryption of the EDI data. Communication protocols EDI AS2 FTP sFTP

VAN (Value Added Network)

VAN – is a private network provider, that only transmits EDI transactions in a secured manner between private networks. A VAN is a mediator who moves data from point A to point B. Until recently, this method of transferring data was considered the safest.

Useful reading: EDI Communication and VANs

EDI VAN connection

8. Which EDI Standard, Document(s) and Protocol should I use?

If you are just starting out, then you will most likely receive a list of requirements from your Trading Partner. It all depends which EDI standard they use, which documents they require from their Partners and how they expect these documents to be sent to them. Your trading partner is one that most of the times dictates the documents to exchange.

9. What are the Benefits of EDI?

There are multitudes advantages to use EDI (Electronic Data Interchange) both for small and mid-size companies as well as to big corporations. Below some impressive benefits from implementing EDI:

  • Improves Shipment Accuracy
  • Accelerates the movement of goods to customers
  • Improves customer/partner relationships
  • Improves cycle time reductions
  • Decision makers are able to quickly access order statuses
  • Improves document accuracy due to the elimination of manual labor.
  • Enhances the flow of information between 2 trading companies
  • Internal teams can now focus on core business tasks and

10. What is the difference between SaaS EDI & On-Premise EDI Software?

SaaS EDI

EDI2XML EDI SaaSUsing SaaS EDI model customers do not pay for ownership of the software, but for renting it (i.e. using it through a mobile application or Web interface). The main advantage of the SaaS model for the company is the absence of costs associated with the installation, update, and maintenance of the equipment and software that is being used by the company.

 

On-premises EDI

In on-premises deployment model, the company needs to maintain and manage the EDI software system itself. There is a whole control over all aspects of the EDI system including security, access and data integrity. EDI software is loaded onto the company’s owned PC or servers. If you choose the on-premises EDI model, keep in mind that you need the skills and expertise within your IT team. You also need the budget to maintain and upgrade EDI software and hardware when needed.

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

11. What is EDI2XML?

EDI2XML is a SaaS EDI Solution, capable of converting EDI documents into XML/CSV/TXT format files and vice versa. EDI2XML is a Full Translation Service, which includes the translation of incoming and outgoing documents as well as communication with Trading Partners.

If you are still not finding the answer in our frequently asked questions post, please contact us.

Do you want to implement EDI at your company? Find out how to get started – request a live demo of EDI2XML.

Free EDI and System Integration consultation

The most used EDI messages in the supply chain management

This post was updated to reflect current trends and information.

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

What is EDI?

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

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

What does EDI mean in logistics?

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

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

The most commonly used set of EDI messages

Top EDI messages

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

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

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

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

Useful: EDI Transaction Types – Complete List of EDI Transactions

EDI messages types

EDI 846 Inventory status

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

EDI 850 Purchase Order

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

EDI 850 contains:

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

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

EDI 855 Purchase Order Acknowledgement

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

Useful reading: What is EDI 855 Purchase Order Acknowledgment?

EDI 856 Ship Notice/manifest or ASN

ASN is a pair of EDI 861 Receiving Advice.

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

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

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

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

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

EDI 860 Buyer triggered P/O change

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

EDI 810 Invoice

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

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

Becoming EDI Compliant

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

Contact us today for more information and for pricing.

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Related Posts:

What is EDI 846 document?

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

What Are the Differences Between ANSI X12 and UN/EDIFACT

EDI as a Service, a winning model in the digital transformation of your business

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This post was updated to reflect current trends and information.

 


One major advantage of the digital transformation and the massive adoption of the cloud, is the initiation of a serious discussion between business owners and executives from one side and their IT service providers from another side, for an outsourced IT services based on the best technology available today, at a reasonable price.

IT-outsourcing in the Digital Transformation era

Companies are more and more outsourcing their IT services to service providers. This process was motivated by customers’ desire to optimize their IT costs. There are different outsourcing models: hardware, software, data warehousing and storage, …

EDI2XML as a serviceFor many years we have seen the growing interest of the market towards a model called Software as a Service (SaaS). Although the term SaaS means only “software”, in fact, it is the most developed (to date) model of IT outsourcing, combining all the components listed above

What is Software as a Service?

Software as a service (SaaS) is one of the forms of cloud computing, a service model in which subscribers are provided with ready-made application software fully serviced by the provider. The vendor in this model manages the application, giving customers access to functions from client devices, usually through a mobile application or web browser.

The advantage of the SaaS model

The main advantage of the SaaS model for the consumer is the absence of costs associated with the installation, updating, and maintenance of the equipment and software that is being used by the company.

In the SaaS model:

  • The application is adapted for remote use
  • One application is used by several clients (the application is communal)
  • Payment is charged either in the form of a monthly subscription fee or on the basis of the volume of transactions
  • Technical support of the application is included in the payment
  • Updating and upgrading the application is quick and transparent for customers.

As with all forms of cloud computing, customers do not pay for ownership of the software, but for renting it (i.e. using it through a mobile application or Web interface).

Thus, as opposed to the classic software licensing scheme, the customer has relatively small recurring costs and does not need to invest heavily in the acquisition of the application program and the necessary Software and hardware for its deployment, and then maintain its performance, for the years to come.

EDI translation software in the Digital Transformation

Many entrepreneurs realize that using Electronic Data Interchange (EDI) is a necessary condition to do successful business. Even in some cases, there is no choice, it is mandatory to be EDI compliant in order to trade with big channels like Walmart, Costco, Canadian Tire or Target. Businesses are looking for the most profitable and cost effective EDI solution to implement.

Read: EDI X12, EDIFACT, CSV, XML – Why is a conversion necessary?

 

EDI benefits are obvious in business. One of the major advantages of EDI, is that it can quickly improve and develop an enterprise bottom line.

If the company is EDI compliant, it will be able to expand its turnover without a significant influx of new employees. Certainly, another advantage of EDI is that it reduces human errors, increases efficiency and the quality of information.

Read: EDI converter: Benefits of converting between EDI and XML

 

What are the advantages of using EDI as a Service?

EDI2XML as a Service is an ideal solution for companies of all sizes and from various industries who seek to implement an edi solution to comply with their trading partners and want to simplify the entire integration of their EDI in their Systems and processes.

With EDI2XML as a service, edi is converted to xml and from there, it can be transformed to any format that our client is capable of working with and integrate into his own CRM/ERP.

There is no need for our clients to install any software or hardware. We manage the entire workflow of integration, from setting up new partner, configuring and testing EDI documents and certification with the trading partner. We can even go farther by integrating directly into our clients’ ERP or CRNM systems using certified connectors from the Manufacturer (i.e. SAP, JDE, Microsoft AX…). As a result, our clients have a quick and painless fully integrated solution, and continuous streamlined EDI and data flow between all partners.

Choose to outsource your digital transformation projects

Whatever EDI converter you are looking for: edifact to xml, convert edi to xml online, convert x12 to xml online, etc. We have the best EDI Solution for your business. So, do you want to exchange electronic documents with customers, suppliers, and business partners, with a cost effective and optimal way? Then you have to check EDI2XML as a Services live.

Contact us today for more information and free EDI Consultation.

Free EDI consultation

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Business Tech Terms Definitions

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This post was updated to reflect current trends and information.

We compiled a shortlist of business technology terms that are useful to keep on hand when looking for software solutions for your business or when speaking with an IT Service Provider. Because, sometimes a short and simple definition is all you need, and that’s exactly what we have here.

“SOFTWARE” Terms

Software EDI

• ERP: Enterprise Resource Planning; a fully integrated business process management software suite. It allows users to view, manage and track core business processes and resources using one single database.

• CRM: Customer Relationship Management is a software system that allows your business to manage contacts, collaborate effectively, increase productivity & grow your business. It is based on the preservation and analysis of information to improve the marketing, service and business relations with your customers.

• BI: Business Intelligence; a performance optimization software that aims to produce detailed analyses with the help of customized drillable dashboards. BI provides immediate access to relevant and timely business information (through visualizations & reports)

• WMS: Warehouse Management System; a software application to manage warehouse operations (track inventory, shipping, receiving, stock locations, picking, etc.)

• eCommerce: Website used to make commercial transactions electronically over the Internet; in other words, an online store to sell products and services.

• eCommerce integration: is the synchronization of a company’s eCommerce website with its back-end accounting or ERP system.

• API: An application programming interface (API) is a set of subroutine definitions, protocols, and tools for building application software. In general terms, it is a set of clearly defined methods of communication between various software components.

• Implementation: The process of installing and configuring software; this phase includes many steps such as business process re-assessment, system testing, user-training and support.

• Integrated Software: A collection of computer programs (modules like accounting, purchases, sales, inventory management, sales forecasting, EDI & more) which share one database.

• IT Consulting: Consulting services provided by an outside organization/consultant to advise business executives or IT managers on appropriate strategies and solutions to bring efficiency into the company through technologies.

• Digital transformation (DT): Digital Transformation (DT) is the transformation of business by remodeling the business strategy or digital strategy, models, operations, products, marketing approach, objectives etc., by adopting digital technologies. This accelerate sales and growth of the business from end to end.

• Office automation: Office automation refers to the varied computer machinery and software used to digitally create, collect, store, manipulate, and relay office information needed for accomplishing basic tasks. Raw data storage, electronic transfer, and the management of electronic business information comprise the basic activities of an office automation system. Office automation helps in optimizing or automating existing office procedures.

• Artificial Intelligence (AI) Artificial intelligence (AI) is an area of computer science that emphasizes the creation of intelligent machines that work and react like humans. Some of the activities computers with artificial intelligence are designed for include speech recognition, learning, planning, and problem solving.

• Internet of Things (IoT) The Internet of Things (IoT) is the network of physical devices, vehicles, home appliances and other items connected to the internet, collecting and sharing data. An example of an Internet of Things device a lightbulb that can be switched on using a smartphone app is an IoT device.

• Industrial Internet of Things (IoT) The Industrial Internet of Things is a unified system of computer networks and production equipment with built-in sensors and software for collecting and exchanging data. This system has remote monitoring and control in automatic mode, without human intervention. Industrial Internet of Things allows creating industries that are more economical, flexible and efficient than existing ones.

“EDI” Terms

• EDI: Electronic Data Interchange; the secure process of electronically exchanging business documents, like Purchase Orders, Invoices, ASNs, (in a pre-defined format) between Trading Partners

• EDI Standard: EDI documents are sent using standard-specific formats, describing what each piece of information is; these standards avoid trading partners sending documents back and forth using company-specific formats. Common standards include: ANSI ASC X12 (North American Standard), EDIFACT (International standard)

• EDI Translation System: Software application used to translate the EDI format (into a format readable by humans and systems) so the data can be read and used by business people and processed by a company’s internal management system.

• Communication Protocol: Communication method used to transmit data to and from Trading Partners; FTP, sFTP, AS2, VAN, Https

• Point-to-Point: Direct Connectivity; rather than having documents pass through a VAN, Trading Partners can exchange documents directly through secured communication protocols like FTP, sFTP, AS2, Https, etc.

• VAN: Value Added Network; a private network provider to facilitate electronic data interchange for Trading Partners; considered the “EDI post office” for incoming & outgoing documents.

• AS2: Applicability Statement 2; A point-to-point connectivity method that sends messages across the internet using the HTTP or HTTPS protocol, with increased verification and security.

• Trading Partner: Participant in an ongoing business relationship

• XML Extensible Markup Language; a markup language used to describe data. This is typically the go-to in EDI translation, since it is a format that is human and system-readable

• Data Mapping: The method by which information in one format is restructured into a different format.

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