Oracle - E- Business – E-Commerce - EDI

EDI Stands for Electronic Data Interchange.

EDI is the electronic data exchange the information between trading partners. Data files are exchanged in a standard format to minimize manual efforts, speed data processing and ensure accuracy.

EDI, electronic funds transfer (EFF), electronic mail and fax as increasingly being used to schedule operations, streamline order fulfillment and optimize cash flow

 Simple EDI Business Flow:-

1.       Customer creates the Purchase Order (PO) for purchase the items.

2.       Then customer send the PO through mail or fax  to supplier

3.       The supplier receive the PO and valid the PO requirement information

4.       Next supplier Enter/Create the Sales Order  on this System

5.       The supplier send the Sales order acknowledge to customer through fax or mail.

6.       The Supplier shipped the items to the customer .when the items shipped, the supplier arise Invoices to the customer.

7.       The customer makes the payment based on invoice.

Let us imagine, how much information needs to transfer the data and tracked run the business, cost, process times and data errors etc., using Intermediate communication link - EDI performing effective way of business

Organizations that send or receive documents between each other are referred to as "trading partners" in EDI terminology. Trading partners are free to use any method for the transmission of documents. Few of the transmission mediums used are Value Added Network (VAN), Internet/AS and Web EDI.

EDI translation software, popularly known as Translator, validates the partner and checks if the data received meets the standard formats defined before converting it to a desired file format which can be read and imported by the receiver's computer systems (for e.g. ERP).

EDIFACT & X12 are most widely followed EDI standards. The standards prescribe the formats, character sets, and data elements used in the exchange of business documents and forms.

EDI Standard Exchange format:

X12 - The American National Standards Institute (ANSI) chartered the Accredited Standards Committee (ASC) X12 to develop uniform standards for industry electronic exchange of business transactions-electronic data interchange (EDI)

UN/EDIFACT - United Nation Electronic Data Interchange for Administration, Commerce and Transport. UN/EDIFACT is an international EDI standard designed to meet the needs of both government and private industry.

The UN/EDIFACT Working Group (EWG), a permanent working group of the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), develops and maintains UN/EDIFACT.

Hints: X12 is used in the USA but most of the rest of the world uses the EDIFACT transaction sets.

Components:

There are five process involved in EDI

ü  Sender

ü  Receiver

ü  Language

ü  Content

ü  Medium

In EDI, Sender and Receiver are called as trading partner (like customer and vendors). X12 or EDIFACT standards supply a common language for formatting the information content of common message

Terminology used in EDI:

Ø  Transaction Set - Business document transmitted between companies (e.g. Purchase Order).

Ø  Data Segment - Units of data used to communicate specific information within a message (e.g. the header).

Ø  Data Element - Specific unit of data within a data segment.

Ø  Trading Partner - Entity such as a customer, supplier, or organization with whom electronic commerce is executed.

Ø  EDI Standards - Agreed to formats for exchanging electronic data (typically developed by representatives of industry verticals).

Ø  Translator - Software application that translates data into or out of a specific format or standard for processing by an ERP system

Oracle EDI e-Commerce Gateway – Functionality

• Define Trading Partner Relationships
• Define Code Conversions
• Customize Flat File Formats (like xml,xls,.csv etc)
• Use Standard Report Submission
• Initiate Extract Process
• Initiate Import Process
• View Extract/Import Process Status