EDI Service Is Changing With The Internet

2007-03-08 10:33:40

( Web Hosting-SEO-Web Design )



Electronic data interchange, or EDI, the method of exchanging standardized business documents directly between computers, is similar to electronic mail. However, the information you want to send to (or will receive from) your trading partner needs to undergo EDI translation before transmission. Normally, you will transmit EDI messages through an EDI service provider, also known as EDI VAN (value-added network).

Your EDI service provider serves as a store-and-retrieve mailbox system, managing the electronic transfer from one company to another. You would send your EDI messages to the EDI service provider's computer. In turn, the EDI service provider places your message in the mailbox of your target receiving party, ready for collection.

In addition to data transmission services, EDI service networks also provide:

• Authentication – verification of trading partners' identities and bases for interaction;
• Security – provision of a protective buffer between partners' computer systems; and,
• Non-repudiation or audit tracking – provision of neutral, third-party audit trail information for settlement of disputes.

Historically, you would access your EDI service network via telephone connections. The Internet is changing EDI service patterns. One impact has been to allow companies to use the Internet infrastructure to transport data between their and their EDI service provider's IT systems. This lowers telecommunications costs, but does not affect the overall service quality. New generation EDI software may soon allow you to embed EDI information in your e-mail messages over the Internet.

The Internet also allows EDI service providers to extend their reach to smaller companies that previously did not have the resources to invest in EDI software and other EDI infrastructure. The main partner usually sets up a web site for its smaller partners to use. The system automatically processes a smaller-partner-created transaction on the web site as though it were an EDI message. This allows more trading partners to participate in EDI transactions.


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