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Convert EDI to XML – the Winning SaaS Option

This post was updated to reflect current trends and information.

In today’s competitive world of eCommerce, mobility, and electronic business transactions, small and mid-sized enterprises are facing more and more challenges with “integration”.  It is not an option anymore for an SME to be able to communicate and exchange business data electronically with its partners; it is a “necessity”.

Major retailers, manufacturers, transport companies, health institutions, and insurance companies in North America are requesting, more than ever before, that their trading partners comply and become capable of exchanging electronically business related data.

Whether it be a purchase order (850), an advance shipping notice (856), an invoice (810) or a payment remittance advise (820), all these EDI documents are becoming essential to the daily activities of an SME.

More often than not, SMEs do not contest the demand to comply with these methods of communication enforced by the “major players”, considering the flexibility and efficiency EDI delivers for both business partners in the long run. However, during the process of beginning an EDI project, a lot of pressure is put on the executives and employees of an SME for the following reasons:

Limited IT resources

In general, SMEs have a small team of IT people that are busy running their day-to-day operations. Adding EDI integration projects on their shoulder complicates their lives. In some smaller businesses, there may not even be an IT technician on staff.

Limited or No EDI experience

Even when an SME has enough IT resources, EDI expertise is very rare and hard to find. IT developers and programmers tend to follow the new trends and work with the most recent technologies of data exchange such as XML or JSON, rather than developing expertise with an old complex protocol like EDI.

Expensive EDI consultants

When a company does not have enough expertise in EDI, normally they call the services of outside consultants and developers for such needs. It is not a secret that experienced EDI consultants are very expensive nowadays.

Time consuming to build

Assuming the internal resources and EDI expertise exist within an SME, it takes a long time to build an EDI solution that integrates seamlessly with their own internal ERP systems. In fact, it takes much longer to stabilise such a solution, in the sense that every department in the company will be going through the same cycle of “trials and errors” as the developers, before one could say that the solution is perfect. It could take months or even years to have a stable and strong EDI software solution.

The above points make an EDI integration project a burden for an SME. It can become a very expensive step that most companies cannot afford especially in this economic time. Even worse, it is an option that they cannot escape from if they want to do business with big players, like Wal-Mart, Amazon, etc.

Read: EDI2XML | SAAS EDI translation software

Therefore, what is an alternative option that could provide the possibility to comply with EDI, without incurring the upfront huge investments on labour, software licences, and hardware architecture? Which option will increase efficiency during and after the implementation stage?

Convert EDI to XML “as a Service”

In the last few years, the model of using services and software under the SaaS model (Software as a Service) where companies and individuals pay a monthly subscription fee for its use has become very popular. Many companies are adopting this model for their IT needs since it has been proven to be secure and reliable.

The same concept of “service” exists with EDI also!

EDI2XML

When an SME subscribes to this service, it means that it selected the shortest possible path to integrate EDI into their system, using the most cost effective manner:
  • No need to install any EDI software or licences on premises (on their servers)
  • No need for expensive EDI consultants
  • No need to hire in-house developers with high level of EDI experience

Any integrator with a decent knowledge in data structures, such XML, and an understanding of the architecture of the company’s system and how to integrate external data within, will be able to accomplish such projects on time and on budget.

Basically, EDI2XML would be used as a hub for converting the data:
  • From EDI to XML in the case for incoming documents
  • From XML to EDI in the case for outgoing documents

With this model in place, all the complexity related to EDI mapping will be eliminated. SMEs will have easier and better control at the application level, using a structured format like XML.

In addition to the above, the EDI2XML team will support the developers in their projects, by providing assistance and help on how to read and interpret the EDI2XML formatted EDI.
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The Advantages of EDI integration projects

Why use an EDI integration project?

In today’s business world, lots of decision makers are still wondering whether to plunge into EDI integration projects or to hire a couple of new employees to manually enter data received and processed by a third party EDI service bureau.

Which option is much more beneficial for their company and returns the most on their investment?

At a quick glance, hiring data entry clerks might seem appealing for the following reasons:
1) The EDI understanding is still a complex topic to understand by non-technical people;
2) The considerable initial capital investment on integration projects: professional services, EDI consultants, professional services…
3) The ongoing EDI service bureau transactional fees, connectivity fees..
4) The time and effort needed to integrate EDI with their ERP, or Business management software solution, that will be billed by IT consultants, EDI specialists and consultants.

While the above reasons are completely valid, companies stop short from researching about the evolution of the EDI world.

With EDI2XML and its “Software as a Service” model, companies are able to cut over 75% of their EDI integration projects costs and gain efficiency and accuracy within a short amount of time. Just by implementing and using EDI2XML translators, the IT consultant of an SMB, will be able to focus on building the integration between XML data files and the business management software solution in place, since XML is widely used and understood nowadays. EDI2XML is able to generate a readable XML of the EDI file, easily understood by humans and systems. As long as the IT consultant has access to the ERP database structure, he will be able to read the EDI formatted file in XML, and push to the tables, after applying all kinds of business validation. The same applies for outgoing EDI documents. As long as the IT consultant is able to generate an output XML file based on a pre-defined schema, XML2EDI engine will process that file and convert into an EDI file format.

EDI communication protocols are becoming very straightforward today; less complexity and more security. Major retailers and corporations are using AS2 or FTPs secured in order to communicate EDI documents back and forth between business partners. Even better, if a company is not able to handle EDI projects due to lack of budget or expertise, EDI2XML technology is used and empowering erpwizard which is a fully integrated business management software solution offered “as a service” (SAAS) either “on customer premises” or in “the cloud“. Not only is it a fully integrated ERP software solution, but it offers a complete EDI solution.

We have over 15 years in EDI integration in the retail, manufacturing, distribution and healthcare industries. We’ve been very active in Montreal, Canada, where our EDI consultants are experienced at the business level just as much as they are at the technical level.

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

Free EDI Demo

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EDI2XML | SAAS EDI translation software

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EDI (or Electronic data interchange) is the electronic file format used to exchange business transactions between trading partners. ANSI X12 is the most commonly used format of EDI in North America in the retail, manufacturing and healthcare industries.

EDI2XML is a mapping tool, capable of converting EDI files to XML. “Out of the box” EDI2XML translates EDI documents (i.e. 850, 860, 820…) into XML format that is readable by people and systems. It is capable of translating an XML format into an EDI format (i.e. 810,856,..). Basically, EDI2XML is an EDI to XML converter; it is also an XML to EDI converter.

Using EDI2XML helps you:

  • Streamline and simplify EDI projects, and cut EDI mapping software costs by 75 %.
  • Increase your Return on investment on EDI integration projects, by eliminating the need for complex EDI systems, and expensive EDI software that takes weeks and months to setup and configure.
  • Increase efficiency of your developers and EDI integrators, by providing them with a great EDI translation software, without the need of  extensive EDI expertise. “Out of the box”, the edi2xml engine provides an easy to read EDI document in a user friendly XML format which is very simple to integrate into any business software application.

EDI2XML converts EDI to XML. The same engine is intelligent enough to process XML and convert to EDI. Both engines, are bundled together and offered under the SAAS model (software as a service), where you pay per EDI docmeunt, per trading partner and per year. EDI2XML is the EDI translation software as a service that can help you get started with your EDI integration projects at a very low initial capital investment.

Read: Convert EDI to XML: the Winning SaaS Option

Free EDI Demo 

Not interested in EDI integration projects, and looking for a complete Business Management Software Suite, that has a built-in EDI capability? Click here to learn more about our ErpWizard Suite, our premium management software solution!

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How Much Does an EDI License Subscription Cost?

This post was updated to reflect current trends and information.

EDI2XML’s Subscription Cost

EDI2XML licensing is affordable since we take the time to listen to our customers’ EDI requirements and price it accordingly. We’ve also ensured that our monthly subscription plans fall within the budgets of companies of all sizes (from small to large). We offer two types of services:

EDI Web Service

Fully Managed EDI Services

EDI Web Service

EDI2XML Web Service is an HTTP EDI Web Service (REST API) that runs over the internet on EDI2XML’s own platform that takes HTTP requests to translate EDI messages into XML, and XML messages (based on EDI2XML’s proprietary format) into EDI.

You can get started quickly and easily with EDI2XML Web Service. It takes less than an hour to place a first call to the Web Service and sees the response.

EDI2XML Web Service Costs

The EDI2XML charges for using EDI HTTP/Web service calls are based on a very simple pricing system. The prize consists of [2] elements:
  1. The monthly mailbox fee is a “fixed” fee for Web Service Mailbox usage on the EDI2XML platform.
  2. During a calendar month, a “variable” fee is assessed based on the volume of data processed through EDI and XML translations.

Request EDI2XML Web Service Price List

Fully Managed EDI Services

With this SaaS option, all conversions of EDI files are done on our end, leaving you with no installation of software or hardware on your premises.

We offer EDI2XML Managed Services, a fully managed EDI service that includes translation and communication services to businesses of all sizes, in a variety of industries. We drop off and pick up all EDI documents to and from your trading partner’s server and send you email alerts when this is done.

Pricing for these options consist of a one-time affordable setup fee (only determined after a consultation call) as well as a monthly subscription fee, based on volume consumption in a given month (inbound and outgoing EDI transactions).

Don’t worry if your business has EDI documents that aren’t in the list of documents; we can always work with new documents.

We invite you to:

– Download the evaluation sheet and fill in the appropriate information

– Once the Excel evaluation sheet is filled in, please feel free to email it to sales@namtek.ca

– Download our EDI2XML Service Pricing Package to see the monthly plans we offer.

Within 24 hours someone will be contacting you for a free consultation to discuss your EDI requirements in more depth.
Get A Free EDI Consultation

Read: Fully managed EDI service VS HTTP Web Service: Which is Better for Your Business ?
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How is EDI2XML licensed ?

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The licensing scheme of EDI2XML

EDI2XML is licensed in two ways: On Premises or as a Service. Both of these plans consist of converting EDI X12 files to XML format, as well as XML to EDI X12. The licensing scheme is affordable and very simple, allowing users to have unlimited EDI transactions per month per partner.

A license consists of an affordable one-time initial investment fee per partner as well as a recurring fee – maintenance & support fee paid yearly for the ‘on Premises’ option and a monthly subscription fee for the SaaS option.

Please consult our list of features for EDI2XML on premises as well as for EDI2XML as a Service.

We provide an EDI2XML portal for self-service users, where they are able to login and manage their EDI2XML profile at any moment.

EDI2XML was developed to simplify EDI projects and keep them under budget. Start enjoying cost savings and more free time when it comes to your EDI assignments!

 

Read: How much does a license subscription cost?

Free EDI Demo

 

*Please note that the EDI2XML “on premises” engine (or executable) runs on your server, on a platform running Microsoft windows operating system and .NET framework.

*VAN fees are NOT included

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How does EDI2XML work ?

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How does EDI2XML work?

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

EDI Platform

Read: What is EDI ?

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

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

Read: How is EDI2XML licensed ?

Free EDI Demo

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What is a VAN ?

EDI Communication and VANs

What is a VAN ?

A Value Added Network (VAN) is considered the “post office” where business partners can collect and sort EDI documents coming through. As of today, a considerable amount of EDI transactions are still going through VANs, however this number is always in constant decline considering the popularity of the internet, its reduced cost as well as the level of security someone can implement with internet communication protocols. Most of the “major players” in the retail industry, have switched to a point-to-point communication of EDI files and transactions using one or many of the following secured communication protocols for a point-to-point EDI exchange:

FTP (not secured – plain text)

sFTP

Https

AS2

AS3

telnet

“bisync modem” to communicate through a value added network (VAN). This is the oldest method of secured communication.
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What is EDI?

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This post was updated to reflect current trends and information. 

A Technical Introduction to EDI

Before I start explaining anything about EDI2XML, I would like to start by giving a more technical introduction to EDI, its usage, and its history. EDI is an acronym for Electronic Data Interchange. It has been around for a long time and has been used by retailers and private corporations in several verticals (health, retail, insurance…). When people in the business community talk about exchanging “EDI transactions“, they refer to a combination of the following:
  • Structured EDI file format including version, revision, standard…
  • Protocol of communication, medium and security (FTP, sFTP, AS2, VAN…)
  • Business partners (vendors, retailers…)

Simply speaking, EDI is the process of “electronically” exchanging documents between business partners in a pre-defined format. The information is transmitted in a secured manner. Normally, files with EDI format are structured and follow “EDI standards”.

EDI Standards

There are several widely used EDI standards, including:

  1. ANSI ASC X12: This is the predominant standard used in North America for various industries, such as retail, healthcare, transportation, and finance. It defines specific transaction sets like purchase orders (850), invoices (810), and shipping notices (856).
  2. UN/EDIFACT: This is an international EDI standard developed by the United Nations. It is widely used outside of North America and is popular in sectors like transportation, logistics, and customs. UN/EDIFACT includes a comprehensive set of message types covering various business processes.
  3. GS1 EDI: This standard is developed by GS1, a global organization focused on supply chain standards. It is used primarily in the retail and consumer goods industries. GS1 EDI incorporates the GS1 barcoding standards and provides specific message types for processes like product catalog synchronization, purchase orders, and invoices.
  4. HIPAA EDI: The Health Insurance Portability and Accountability Act (HIPAA) introduced specific EDI standards for healthcare-related transactions. These standards ensure the secure and standardized exchange of sensitive patient data between healthcare providers, insurers, and other entities.
  5. TRADACOMS: Developed in the United Kingdom, TRADACOMS is an EDI standard commonly used in the retail industry. It includes message types for processes like order management, stock control, and invoicing.

These are just a few examples of the many EDI standards available. Each standard has its own message formats, data elements, and communication protocols. Organizations typically choose the appropriate standard based on their industry, geographic location, and trading partner requirements.

Read: What is a VAN ?

EDI X12

EDI has been evolving with different versions, revisions and sub-revisions. For example, in the X12 standard EDI format, I started my EDI career with the EDI version 3010. Today, we are working with much higher EDI versions such as 4010, 5010, 5020… It is important to note that within each one of the above versions, different revisions might exist.

EDI Transactions and Documents

Read: How does EDI2XML work ?

EDI documents are “number coded”; for example, a Purchase Order sent by a retailer to a vendor using EDI format is coded under the number “850”. The same applies for other documents such as 810 (for invoice), 856 (for Advance shipping notice), 820 (for Payment Advice), and 860 (for Retailer triggered Purchase Order Change). The list goes on and it is not limited to the above. For a more extensive list of EDI documents that EDI2XML supports,  visit our EDI Document Library.

Each EDI document sent to a party has to be responded to by the other party by sending back a Functional Acknowledgment (FA 997). The 997 designates that the “structure” of the EDI file was certainly received, without looking at the “content” of the EDI formatted file. Both business partners understand the “content” of the information and they are able to translate into business terms. This is where EDI2XML comes into play to convert and translate the content and make it ready for integration.

To learn more about EDI, read our new blog “What is EDI (Electronic Data Interchange)?” 

RELATED POSTS:

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

ANSI ASC X12 Standards Overview

What Are the Differences Between ANSI X12 and UN/EDIFACT
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